Gambling Compliance Briefing Some guidelines on the new environment by Peter Wilson 27 February 2008.

Gambling Compliance Briefing

Some guidelines on the new environmentby Peter Wilson

27 February 2008

Structure of UK licensing regime

Operating, Personal & Premises Licences

Permits

Exempt Gaming

Key Offences

Providing facilities for gambling (s33) unless:

Hold operating licence & in accordance with conditions

Hold personal licence & comply with conditions

Hold permit or exempt gaming

Using premises for gambling (s37) unless:

Hold premises licence

Hold relevant permit or exempt gaming

Manufacturing, supplying, installing or adapting gambling software (s41) without a licence

IT IS A CRIMINAL OFFENCE TO BREACH A CONDITION OF AN OPERATING OR

PERSONAL LICENCE

What are my obligations as a Personal Licence holder?

Must take reasonable steps to ensure that you do not place the operating and/or premises licence holder in breach of their Operating Licence conditions

Must keep informed about gambling law, Codes and any Gambling Commission (GC) guidance

What do I need to know?

Gambling Act 2005

Statutory Instruments

Licence Conditions

Codes of Practice

Guidance

Key Licensing Objectives

Preventing gambling from being a source of

crime and disorder

Ensuring gambling is conducted in a fair and

open way

Protecting children and other vulnerable

persons from being harmed or exploited by

gambling

Licence Conditions and Codes of Practice

General & Specific Operating Licence

Conditions

Codes of Practice

Premises Licence Conditions (non remote)

ALL LICENCE CONDITIONS AND SOCIAL

RESPONSIBILITY CODES OF PRACTICE

ARE LEGAL REQUIREMENTS

What do the Codes and Conditions cover?

Fair Terms&

Conditions

Technical Standards

LegalAdvertising

Reporting Obligations

Money Laundering

Under age Gambling

Complaints&

Disputes

Problem Gambling

Licensing Objectives

Problem Gambling

Policies to contribute to:

Research into prevention & treatment

Public education on risks & gambling safely

Identification & treatment of problem gamblers

Codes – Social Responsibility information

Information (for customers & staff) on how to gamble responsibly & get help

Policy should cover:

Measures to limit sessions or money spent

Self exclusion options

Social Interaction

Where to get help or advice

Codes – Access by children & young persons

Implement policies to prevent underage gambling:

Check age of those apparently underage

Refuse entry to adult-only areas if no ID

Take action where unlawful attempts to enter adult-only areas

Ensure staff know responsibilities:

To prevent underage gambling

What are acceptable forms of ID

Return stakes and not pay prizes to children

Challenge adults complicit in underage gambling

Children & Young Person Offences

Inviting or permitting a child or young person to gamble

Inviting or permitting a child or young person to enter an adult only area of an FEC

Failing to return a stake or refuse a prize

Employment offences

Codes – Fair and Open

Gambling contracts are legally enforceable

Must be able to produce evidence to show terms of gambling are not unfair

Must be fair under Unfair Terms in Consumer Contracts Regulations 1999

Where applicable, must pass the reasonable test in Unfair Contract Terms Act 1977

Complaints and Disputes

Complaint = a complaint about any aspect of licensee’s conduct of licensed activity

Dispute = a complaint whichIs not resolved, and

Relates to outcome of gambling transaction

Complaints and Disputes contd.

Provide complaining customer with:Name & status of person to complain to

Copy of complaints procedure

Keep record of complaints not resolved at first stage

Customer must be able to refer dispute to independent 3rd party if they wish

File with GC copy outcome of disputes referred to 3rd party

Money Laundering Regulations 2007

Now applies to UK licensed internet casinos

Must verify identity and residence of customers

Must have Money Laundering Reporting Officers

Anti-money laundering policies & Staff training

Have you got a contingency plan in place to deal with any investigation?

Codes – Money Lending

Seek to prevent systematic or organised money lending between customers on premises

Policy for staff to report any incidents of substantial money lending

Reporting and General Compliance

Notify GC of key events as soon as reasonably practicable & in any event within 5 working days

Respond to GC requests about use made of gambling facilities & manner carried on

Regulatory Return within 28 days of end of each quarterly or annual period – starting 1 October 2007

Compliance visits

Key events that must be reported

Where serious misconduct alleged v PML

Departure of PMLs from business

Internal fraud over £10k

Acquisition or disposal of gambling premises

Insolvency

Material Litigation

Unsatisfied judgements

Reduction in staff or assets by more than 10%

Advertising - Who can legally advertise to or in the UK?

Properly licensed UK operators

Offence of advertising unlawful gambling

Those regulated by a European Economic

Area (EEA) State

i.e. 27 EU states plus Norway, Liechtenstein and

Iceland

Gibraltar – an EEA place (but not a State)

White Listed Jurisdictions

Who are the white listed jurisdictions so far?

AlderneyIsle of ManTasmania (from 31.01.08)

Who applied and was rejected?CuracaoAntigua Khahnawake… and others not publicised

Advertising to UK – legal or illegal?*

Alderney 39

Isle of Man 11

Costa Rica 242Panama 16

Khanawake 376

Curacao 298

Antigua 189

Malta 210

Cyprus 19

Gibraltar 127

UK sites 99

*Source – www.CasinoCity.com for those accepting play from UK

Belize 46 Philippines 13

Tasmania 2

If you advertise a non EEA /White listed …

Criminal offence of advertising foreign

gambling – s331 of 2005 Act

Punishable by maximum 51 weeks prison

and/or maximum £5,000 fine

But what is advertising and who does the

offence apply to?

Codes – Advertising

Code for socially responsible advertising

Broadcast Advertising

Non Broadcast

Advertising

CAP & BCAP Codes - Examples

Marketing communications should not be:Socially irresponsibleExploit the vulnerableShown as an escape from loneliness etcAs a solution to financial concernsPortrayed as enhancing personal qualitiesLinked to sexual success or toughnessDirected at under 18 year olds (except football pools & lotteries)Portray gambling in working environment

Industry Code

Target audience should be 18 years or over

Adverts should have a link to www.gambleaware.co.uk

No televised adverts before 9pm watershed except sports betting around sporting events & bingo or pools

No logos or promotional material on commercial merchandising for children’s use

Premises licences – mandatory conditions

All premises:

Summary licence document shall be displayed prominently within premises

Layout of the premises to be maintained in accordance with plan

Sale of tickets in private or customer lotteries or the National Lottery prohibited

Example - Bingo – mandatory & default conditions

Notices prohibiting under 18 years playing bingo or on Category B or C gaming machines

Supervised barrier if adult machines Cat B and C machines area

Notice of admission and/or game charges

No gambling between 12 midnight and 9am (default condition)

What if there is a breach of the Conditions or Codes?

Formal Warning

Suspend Licence

Attach a condition to a licence

Revoke Licence

Impose Financial Penalty

PROSECUTION

Who deals with gambling law compliance?

A Policeman

A GC Enforcement Officer

An Authorised Person

i.e. from Local Authority

When can they enter premises?

Power of entry Purpose

Suspected offence Suspicion of any offence under Act

Inspection of gambling Check Licences & compliance with them

Operating Licence holder’s premises

Check activities carried out under Licence

Alcohol Licensed premises Check Exempt gaming, bingo & machines

Prize Gaming Compliance of prize gaming with Act

Clubs Check Exempt gaming & permits

Licensing Act Premises As part of Local authority Review

Powers on entering premises

Policeman, Enforcement Officer or Authorised Person may:

Inspect any part of premises, machine or other thing on premises

Question any person on premises

Require access to any records & be given copies (including electronic records)

Remove anything believed to be evidence of offence/ breach of licence condition

Remove anything used in offence

Offences in relation to inspections

Without reasonable excuse, obstructing, or failing to cooperate with an officer exercising his powers under the Act

Providing false or misleading information to the GC or Licensing Authority

Gambling Compliance Briefing

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