Gambling Commission proposes to simplify regulatory returns

United KingdomScotland

The Gambling Commission (the “Commission”) is conducting a consultation on proposed changes to the information requirements in the licence conditions and codes of practice (the “LCCP”). In particular, these changes will seek to reduce the amount of data operators are required to submit in regulatory returns.

This consultation follows a report by the National Audit Office, which found that the Commission was struggling to keep pace with the gambling industry. The proposed changes are designed to simplify the reporting processes for operators with multiple licences and to reduce the time it takes the Commission to publish aggregated industry data.

In addition, the consultation is intended to reflect the Commission’s continued focus on consumer and social responsibility, ensure requirements are reconciled against its current and future data needs, streamline its existing requirements and where possible, reduce the regulatory burden on operators and the Commission. The consultation, which began in late February, is due to close on 20 May.

Data Collection

The Commission currently asks operators to report a variety of data in their regulatory returns. In order to help streamline the regulatory process and improve efficiency it is seeking to reduce the amount of data it asks operators for, proposing reductions in the collection of non-GB data, B2C revenue share data and gambling software data.

Other areas targeted for reduced data collection include data collected on workforce figures as well as the number of questions posed to gauge operator commitments to research, education and treatment, coming down to two questions instead of the current seven.

Timelines for reporting quarterly and annual returns would also be shortened, the annual return window decreasing from the current 42 days to 28.

Information Reporting Requirements Including Key Events

The consultation also outlines changes to information reporting requirements within the LCCP for key events, including capturing matters relating to suspicious activity, events that have significant impact on the nature or structure of a licensee’s business, social responsibility reporting and other reportable events.

Under the proposal, licensees would also no longer be required to report court judgments, independent auditing arrangements or any change in provisions to protect customer funds.

Consultation Participation

The Commission has invited operators and key stakeholders in the gambling industry to provide their comments on the consultation.

If made, these changes will affect all licensees, including those with operating licences and – to a lesser extent – personal licence holders. Other persons impacted are users of the Commission’s official statistics publications. It should be noted that although the consultation proposes changes to the LCCP, regulatory returns and related matters, the balance of the revisions are deregulatory in nature.

Those who would like to participate in the consultation can do so here.

Any changes to the LCCP arising from this consultation will most likely take place in October 2020, although it should be noted that some changes may be contingent on the Commission updating or rebuilding parts of its data collection system. For regulatory return changes, the Commission will consider adopting a phased implementation and allow for a transition period.

Co-authored by Carter Hansen.