Gambling Commission to quell fears over supplier ambiguity
UK regulator moves to address operator concern surrounding software provider definition ahead of UK gambling licence changes
The Gambling Commission is planning to issue further guidance to operators who fear they may be caught out by impending regulation requiring them to use UK-licensed software providers.
The UK regulator will place an emphasis on operators to ensure all gambling software they use is supplied by a holder of a gambling software operating licence only, or fall foul of the licencing code, as part of a series of proposed amendments to the licencing conditions and codes of practice (LCCP).
A number of operators have expressed concerns their definition of a software supplier may differ to that of the Commission’s, leaving them vulnerable to financial penalties or even the suspension of their licence.
However, the Commission told eGaming Review further guidance on the definition of a software supplier will be given once the current LCCP consultation comes to an end next month.
“The Commission will be working with the industry to produce further advice, both on the implementation of the licence condition and also to help licensed operators determine the extent to which their software supply chain will need to be licensed,” a Commission spokesperson said.
The LCCP proposals are currently at the consultation stage, which comes to an end on 4 December. The amendments are expected to come into effect in the shadow of the Gambling Bill, which is currently working its way through Parliament before its anticipated 1 May 2014 implementation.
And with some operators using dozens of different software suppliers, there is also a concern that not all will be able to gain a licence in time for the go-live date, which could again place operators in an awkward position with the regulator.
“The software supplier point needs more guidance from the Commission and there is likely to be a transitional period after the LCCP changes come into effect to the extent it has not been cleared up – changes not subject to further clarification will be enforceable however,” Ash Averill, gaming lawyer associate at DLA Piper, said.
The Commission told eGR “proportionate” action will be taken should an operator find itself in breach of the code during the “transitional period”, with dialogue preferred before any punitive measures are handed down. How long this transitional period might last is unclear, however.
“The proposed licence condition requiring businesses to use licensed software suppliers will also follow a sensible implementation timetable once the law is in place,” the spokesperson said.
The news comes after eGR last week revealed that the Commission was preparing for the “likely” scenario that it will be unable to process operator applications in time for the start of the new point of consumption regulatory regime.
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