Gambling Commission widens gambling-related harm funding list
Operators can now contribute to other organisations under LCCP terms
Online gambling operators can now contribute to a range of organisations dealing with gambling-related harm following a change in current UK Gambling Commission (UKGC) licensing codes of practice (LCCP).
The change, which came into effect from 1 January, allows licensed operators to make annual financial contributions to organisations on a prescribed ‘white-list’ of research, prevention and treatment organisations. However, the level of contribution required has not been specified.
At present, this list comprises three organisations: GambleAware, GamCare and the Young Gamers and Gamblers Education Trust (YGAM). But EGR understands several other organisations have applied for inclusion.
From today (1 January 2020), operators must direct their annual financial contribution for gambling research, prevention and treatment (RET) to one or more of the organisations on the list maintained by the Commission. Read more:https://t.co/oLs27wV1v2 pic.twitter.com/EKoI1Oxprz
— Gambling Commission (@GamRegGB) January 1, 2020
Gambling-related harm education body EPIC Risk Management confirmed that it would be submitting its own application to be included on the “ever evolving” list, claiming there was no deadline to do so.
“We didn’t receive the link for application until the week before Christmas,” said CEO Paul Buck. “Given the timescales elapsed since the launch of the process, we are surprised to see any names on the list but trust that all applications will be dealt with in the same timeframes and that the process is equitable to all.”
The amount and destination of these contributions is required to be reported on operators’ regulatory returns, both on a quarterly and annual basis.
Operators can make contributions to organisations outside the list, but these will not be counted under the LCCP research, education and treatment (RET) funding standards. Those failing to meet these conditions can be subject to regulatory action and/or financial penalties.
However, the UKGC claimed the LCCP changes did not effectively amount to a mandatory levy on operators, adding that this was a power “reserved for parliament”.
The UKGC has previously said it supports a mandatory levy, however the government has committed to maintaining the current voluntary system as long as current GambleAware funding targets are met.
Richard Williams, partner at Keystone Law, said the failure by the UKGC to specify an amount for contributions meant that an operator could effectively comply with the LCCP by paying as little as 1p.
“Gambleaware previously requested a voluntary 0.1% of GGY to be paid but this was not always adhered to. The new list means that operators now have a choice of where to send their donations, rather than paying to Gambleaware who then distribute the money elsewhere.
“Operators have long argued for this flexibility. Smaller organisations such as YGAM should benefit from this flexibility,” Williams added.