Harris Hagan

31Jan

White Paper Series: 9 months in – where are we?

31st January 2024 Harris Hagan 186

It is now nearly nine months since the publication of the White Paper on 27 April 2023, which was nearly 30 months in the making. Following its publication, the Gambling Commission was quick to manage expectations by saying that the implementation of the White Paper “will likely take a number of years to fully complete”. So, where are we after 9 months? In this blog, and following the format of the White Paper, we look back at the progress made by the Department for Digital, Culture, Media & Sport (“DCMS”), the Gambling Commission and the industry.

Chapter 1: Online protections – players and products

26 July 2023 – Two consultations were published by the Gambling Commission and DCMS to implement proposals to improve online protections in the White Paper:

a Gambling Commission consultation (the “GC Summer Consultation”), which included proposals to reduce the speed and intensity of online products, while making them fairer and increasing consumer understanding about game play and introduce new obligations on operators to conduct financial vulnerability checks and financial risk assessments to understand if a customer’s gambling is likely to be harmful in the context of their financial circumstances. The GC Summer Consultation also included proposals to extend personal management licence (“PML”) requirements so more individuals within a licensee would be required to hold a PML.
a DCMS consultation on maximum stake limits for online slots (the “DCMS Stake Consultation”).

4 October 2023 – The DCMS Stake Consultation closed (extended from 20 September 2023 following the publication of incorrect problem gambling rates). At the time of writing, we await the response.

18 October 2023 – The GC Summer Consultation closed. At the time of writing, we await the response.

29 November 2023 – The Gambling Commission launched a further consultation (the “GC Autumn Consultation”), includes proposals to ensure that tools are available (such as deposit limits) to make it easier for consumers to manage their gambling and increase transparency for consumers if their funds are held by licensees that offer no protection in the event of insolvency. This consultation remains open until 21 February 2024.

Want to read more?

Read more in the following Harris Hagan blogs:

Chapter 2: Marketing and advertising

19 June 2023 – The Gambling Commission published a new hub for operators engaging with third parties.

25 July 2023 – As part of wider work by Government on online advertising and consumer protection, DCMS published its consultation response to the Online Advertising Programme.

26 July 2023 – The GC Summer Consultation was published, which included proposals to improve consumer choice on direct marketing by giving consumers more control over the direct gambling marketing they wish to receive.

5 September 2023 – The Betting & Gaming Council published the seventh edition of the Industry Group for Responsible Gambling Code for Socially Responsible Advertising (the “IGRG Code”), which notably:

extended safer gambling messaging requirements to 20% of advertising space across online and broadcast media (previously, this commitment only applied to television and radio); and
extended the 25+ rule to all digital media platforms, including those which operate age verification processes.

Throughout 2023, the Advertising Standards Authority (“ASA”) has also been making full use of artificial intelligence through its Active Ad Monitoring system in order to review and regulate online advertising. Since August 2023, there have been at least seven rulings on gambling adverts, which the ASA states have formed:

“part of a wider piece of work banning gambling ads which, under strengthened rules, are prohibited from being likely to be of strong appeal to under-18s.”

18 October 2023 – The GC Summer Consultation closed. At the time of writing, we await the response.

29 November 2023 – The GC Autumn Consultation was published and included proposals to ensure free bets and bonuses are more socially responsible and do not encourage harmful or excessive gambling. This consultation remains open until 21 February 2024.

1 December 2023 – The IGRG Code came into force.

Want to read more?

Read more in the following Harris Hagan blogs:

Chapter 3: The Gambling Commission’s powers and resources

23 May 2023 – The Gambling Commission published Evidence Gaps & Priorities, a document outlining current evidence gaps and the Gambling Commission’s approach to address these over the next three years.

26 July 2023 – The GC Summer Consultation was published and included proposals to change the composition and decision-making processes of the Gambling Commission’s regulatory panels. Note that this change was not proposed in the White Paper.

17 October 2023 – DCMS published its consultation on the statutory gambling levy (the “DCMS Levy Consultation”), which set out proposals for the structure, distribution and governance of the statutory levy for gambling operators.

18 October 2023 – The GC Summer Consultation closed. At the time of writing, we await the response.

23 October 2023 – The Gambling Commission called licensees to participate in a user research programme aimed at sharpening the dataset received through regulatory returns.

22 November 2023 – The Government published the Autumn Statement 2023, which included proposals to change the structure of remote gambling taxation.

23 November 2023 – The Gambling Commission published its first ‘experimental’ statistics from the Gambling Survey of Great Britain, which will become the data source for the Gambling Commission’s official adult gambling participation and problem gambling prevalence statistics in 2024.

29 November 2023 – The GC Autumn Consultation was published and included proposed changes to the LCCP to increase the frequency of regulatory returns and standardise reporting periods across the industry and remove the current voluntary system for funding research, prevention and treatment, once the statutory gambling levy is in force.

14 December 2023 – The DCMS Levy Consultation closed. At the time of writing, we await the response.

15 December 2023 – Although not specifically proposed in the White Paper, the Gambling Commission published a further 2023 consultation on 15 December 2023 (the “GC December Consultation”), which included proposals to update its Statement of Principles for Determining Financial Penalties to make changes to the criteria for imposing a financial penalty and the methodology for determining the amount of the penalty and add new key reporting requirements to the LCCP.

21 February 2024 – GC Autumn Consultation closes.

15 March 2024 – GC December Consultation closes.

Want to read more?

Read more in the following Harris Hagan blogs:

Chapter 4: Dispute resolution and consumer redress

The process for the appointment of a gambling ombudsman was timetabled to commence in Spring/Summer 2023. Government expects the ombudsman to be accepting complaints within a year of the publication of the White Paper. We are not aware of any public updates in this area since the White Paper was published.

Want to read more?

Read more in the following Harris Hagan blog:

Gambling Ombudsman – a new approach to consumer redress

Chapter 5: Children and young adults

18 July 2023 – The Gambling Commission clarified its approach to vulnerability and its expectations of licensees, ahead of the publication of its updated customer interaction guidance for remote gambling licensees, which was issued on 23 August 2023.

31 October 2023 – The customer interaction guidance came into effect.

Want to read more?

Read more in the following Harris Hagan blog:

Gambling Commission publishes new remote customer interaction guidance

Chapter 6: Land-based gambling

26 July 2023 – DCMS published a consultation (the “DCMS Land-Based Consultation”), which included proposals to relax casino rules relating to table/machine ratios, improve age verification measures, introduce cashless payments on gaming machines and increase licensing authority fees.

4 October 2023 – The DCMS Land-Based Consultation closed. At the time of writing, we await the response.

Want to read more?

Read more in the following Harris Hagan blogs:

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18Dec

Bahar Alaeddini named in the top 10 Most Influential Women

18th December 2023 Harris Hagan 178

We are very proud to announce that Partner, Bahar Alaeddini, has been recognised in the top 10 Most Influential Women of 2023 by iGamingBusiness.

The award, now in its sixth year, highlights the outstanding contributions made by women who have not only excelled in their roles, but have also made a difference by influencing change within their workplaces and across the wider industry. This honour recognises Bahar’s continued exceptional impact on the gambling industry since joining Harris Hagan in 2012, and reflects the ethos and diversity of the firm, with 50% of both our partners and lawyers being female.

Bahar advises many of the world’s largest online and land-based gambling companies, regulators, financial institutions, and private equity firms on gambling law and regulation. Bahar is at the forefront of thought leadership in the gambling sector, sharing her extensive experience and insight by authoring many articles on a wide range of topics, including acting as the editor of the Chambers Global Practice Guide on Gaming Law. Bahar was named earlier this year as an Emerging Leader of Gaming 40 under 40 and is General Counsel of the International Association of Gaming Advisors and top-ranked in Chambers UK and The Legal 500.

01Dec

White Paper Series: Gambling Commission launches Autumn 2023 consultation

1st December 2023 Harris Hagan 203

On 29 November 2023, the Gambling Commission launched its Autumn 2023 consultation (the “Autumn Consultation”). It is the Gambling Commission’s second consultation addressing its commitments within the White Paper, following the Summer 2023 consultation.

The Autumn Consultation sets out five proposed changes to the Licence Conditions and Codes of Practice (“LCCP”) and Remote Gambling and Software Technical Standards (“RTS”), several of which were foreshadowed in the Gambling Commission’s Advice to Government in April 2023. These include:

Socially responsible incentives

The Gambling Commission wants to make changes to ensure that incentives such as free bets and bonuses are constructed in a socially responsible manner and do not encourage excessive or harmful gambling. Proposals include banning or limiting (to a maximum of 1, 5 or 10 times) the use of wagering requirements in promotional offers and banning the mixing of product types (e.g. betting, bingo, casino and lotteries) within incentives for new and existing customers, as well as updating social responsibility code provision 5.1 of the LCCP to make it explicit that incentives should be constructed in a manner that does not lead to excessive or harmful gambling.

Customer-led tools

The proposals include amendments to the RTS to ensure customers can seamlessly use pre-commitment tools (such as deposit limits) to maintain awareness and control over their gambling. The Gambling Commission is also seeking stakeholder views on: (a) minimising friction in the customer journey when they choose to use customer-led tools; and (b) cross-operator deposit limits, the prospect of which is sure to be a key area of focus in industry responses.

Improved transparency on customer funds in the event of insolvency

The Gambling Commission is seeking to improve the transparency of operators who have a ‘not protected’ rating (under the Gambling Commission’s rating system) in relation to customer funds. It proposes an addition to the LCCP, to require licensees to remind customers, no more than once every 6 months, that their funds are not protected in the event of insolvency throughout the customer relationship.

Changes to the frequency of regulatory returns

As we previously discussed, the Gambling Commission is proposing to amend the LCCP to require all regulatory returns be submitted on a quarterly basis.

Notably, the Gambling Commission states it will continue to engage with industry on the “final specification of fields for reporting” outside of the consultation process. We understand that this will be conducted through the Gambling Commission’s User research programme shortly, which we explained in a recent blog.

Removing obsolete Gambling Commission requirements due to the Government’s upcoming statutory levy (LCCP RET list)

Running alongside the Government’s consultation on the statutory levy, the Autumn Consultation proposes to remove the current requirement to make an annual financial contribution to fund research, prevention and treatment (“RET”) from the LCCP, once the statutory levy is introduced or at the beginning of the financial year in which the levy is introduced.

For further information about the statutory levy (and the Government consultation), please see our recent blog.

Other industry updates

The Gambling Commission explains that it is currently analysing the responses to its Summer 2023 consultation, which closed on 18 October 2023, and will release “one or more responses” to that consultation in 2024. It will also be launching another consultation on two “business as usual” matters shortly. This will include proposals addressing the clarity and transparency of the Gambling Commission’s calculation of financial penalties as well as licensees’ reporting of financial key events.

Next steps

The Autumn Consultation will be open for 12 weeks, closing on 21 February 2024. Responses can be submitted online, or by post to the Gambling Commission’s Policy Team.

We strongly encourage all licensees and stakeholders to review and respond to the Autumn Consultation. Please get in touch with us if you would like to discuss this matter further or require our assistance preparing responses.

29Nov

Chambers Gaming Law 2023 Global Practice Guide

29th November 2023 Harris Hagan 178

We are pleased to announce that Bahar Alaeddini has reprised her role as Contributing Editor to the Chambers Global Practice Guide for Gaming Law 2023, and Jessica Wilson has again contributed as a co-author. The latest edition of the Gaming Law 2023 guide is now live and describes the licensing and regulatory regimes in 35 jurisdictions, including many of the major global jurisdictions.

In a year that saw a number of significant developments and regulatory updates in the UK and abroad, Gaming Law 2023 is a helpful guide to lawyers, gambling businesses and others in the industry. It provides the latest legal information on a range of topics, including: land-based and online gambling; B2C and B2B licences; application requirements; affiliates; white labels; responsible gambling; AML legislation; restrictions on advertising; acquisitions and changes of control; trends in social gaming, esports, fantasy sports and blockchain; and taxation.

Harris Hagan contributed to the following parts of the publication:

Key trends are covered by jurisdiction under the Trends and Developments section, and the practice guide also provides users with the opportunity to perform jurisdiction comparisons using the Compare locations tool.

Please use the above links to review our contributions and use the practice guide.

19Oct

Harris Hagan retains Band 1 ranking in Chambers and Partners

19th October 2023 Harris Hagan 186

We are delighted to announce that Harris Hagan is ranked in Band 1 of Chambers and Partners UK 2024 for Gaming for the 20^th consecutive year.

“The team at Harris Hagan is comprised of experts in their field and is very accomplished at handling the complex landscape of gambling regulation in the UK.”

Partners John Hagan and Bahar Alaeddini continue to be recognised in Band 1. Consultants Julian Harris and Hilary Stewart Jones are ranked as Senior Statespeople. Senior Associates David Whyte and Gemma Boore, together with Associate Francesca Burnett-Hall, continue to be recognised as Associates to Watch. Together they constitute 7 of the 27 gaming lawyers recognised in the directory, befitting our status as a leading specialist gambling law firm. We were also invited by Chambers to write the introduction to the practice area.

We received many positive testimonials, including:

“The lawyers at Harris Hagan are top legal specialists in the remote gaming industry and have been able to assist with all our requests, with the ability to adapt to our business and commercial expectations.”

“John is the go-to person for reliable, practical and sensible advice. He has vast experience across the gambling sector and is able to draw on this to support our business.”

“Bahar is a master at solving complex issues and has an encyclopaedic knowledge of gaming laws and regulations.”

“David is very responsive and knows the industry, regulations and landscape well.”

“Gemma is very easy to deal with as well as very proficient in every aspect of her work.”

“Francesca is always available and very diligent.”

In view of the sensitive nature of much of our work, it is our long-held policy not to name clients in directories, but you know who you are, and we thank you for your continuing instructions and for helping us achieve these impressive rankings.

06Oct

Harris Hagan continues to be ranked Tier 1 in The Legal 500

6th October 2023 Harris Hagan 207

We are delighted to announce that Harris Hagan continues to be ranked in The Legal 500 2024 as Tier 1 for Gaming and Betting in the UK.

“There’s no one else to go to other than Harris Hagan for everything gaming. One stop shop for all your needs. They deliver trust, confidence and integrity.”

Managing partner John Hagan, alongside consultants Julian Harris and Hilary Stewart-Jones continue to be listed in The Legal 500’s Hall of Fame, and partner Bahar Alaeddini retains her listing as a Leading Individual.

David Whyte, senior associate, has been listed as a Rising Star and remains a key lawyer, alongside senior associate Gemma Boore, and associates Francesca Burnett-Hall and Jessica Wilson.

We received many positive testimonials, including:

“Market leader in gaming law.”

“The team is very knowledgeable about UK gambling laws and engaging with the regulator.”

“The individuals at Harris Hagan have a deep knowledge of not just the British gambling laws, but also of the way in which the regulator operates.”

“In-depth knowledge of gambling licensing in terms of regulations and how they are implemented.”

“Bahar Alaeddini and Jessica Wilson get full marks.”

“John Hagan, Julian Harris and Bahar Alaeddini are prominent leaders in the gaming law field.”

We wish to thank our clients and friends of the firm for their input and recognition of our work.

26Sep

Bahar Alaeddini named an Emerging Leader of Gaming 40 under 40

26th September 2023 Harris Hagan 188

We are very delighted to announce that Partner Bahar Alaeddini has been named an Emerging Leader of Gaming 40 under 40 by The Innovation Group, organisers of the Emerging Leaders of Gaming, and Global Gaming Business.

The programme recognises professionals under the age of 40 already making significant impacts in the global gambling industry, and the next generation of industry leaders.

This honour recognises Bahar’s continued exceptional impact on the gambling industry since joining Harris Hagan in 2012. Bahar advises many of the world’s largest online and land-based gambling companies, regulators, governments, financial institutions, and private equity firms on gambling law and regulation. Bahar is also at the forefront of thought leadership in the gambling sector, sharing her extensive experience and insight by authoring many articles on the topic, including acting as the editor of the Chambers Global Practice Guide on Gaming Law. Additionally, Bahar is General Counsel of the International Association of Gaming Advisors and top-ranked in Chambers UK and The Legal 500.

The group’s achievements will be celebrated at G2E in the Networking Lounge (Booth 5649) on 11 October 2023 from 4pm to 5pm. The reception is open to all registered G2E attendees, including past honourees and professionals across the Emerging Leaders of Gaming network.

22Sep

DCMS Committee inquiry on gambling regulation

22nd September 2023 Harris Hagan 220

In case you missed it earlier in the month, on 5 September 2023, the Rt Hon Stuart Andrew MP (Gambling Minster), Ben Dean (Director, Sport and Gambling at DCMS), Andrew Rhodes (Chief Executive, Gambling Commission), Sarah Gardner (Deputy Chief Executive, Gambling Commission) and Tim Miller (Executive Director for Research and Policy, Gambling Commission) appeared before the DCMS Committee examining the Government’s approach to the regulation of gambling. The Gambling Commission gave evidence in the first session at 10am, and the Gambling Minister and DCMS gave their evidence in the second session at 11.30am.

Watch the recording of the DCMS committee oral evidence sessions:

22Sep

Julian Harris wins VIXIO’s 2023 Compliance Lifetime Achievement Award

22nd September 2023 Harris Hagan 203

We are very delighted to announce that Consultant and Founder Julian Harris has been awarded the Global Regulatory Award for Compliance Lifetime Achievement by VIXIO Regulatory Intelligence.

This special award recognises Julian’s unprecedented work in trailblazing a “culture of compliance and regulatory standards within the industry” for more than 40 years. During that time, Julian has advised many of the world’s largest online and land-based gambling companies, regulators, governments, financial institutions, and private equity firms on gambling law and regulation. Julian has also been at the forefront of thought leadership in the gambling sector, sharing his extensive experience and insight on various gambling regulatory issues by authoring many articles on the topic, including acting as editor of global publications on gambling law, and in his speeches at conferences across the world. He also served as President of the International Association of Gaming Advisors, the first person to do so from outside North America, testament to the esteem in which he is held amongst gaming advisers worldwide.

Julian first came to specialise in gambling law in 1981 representing the Gaming Board for Great Britain (the then British regulator). He co-founded Harris Hagan with John Hagan in 2004, in anticipation of the Gambling Act 2005 and the expected growth of the gambling industry in Great Britain. It was a bold and inspired decision at a time when niche law firms were rare in the City of London.

Upon receiving this distinguished award, Julian commented:

“I am greatly honoured and humbled by this award. I have felt privileged to have enjoyed being a part of this exciting industry for some 40 years, working with industry, fellow advisers and regulators internationally.
To receive this award from such a distinguished panel of judges and from the most respected global regulatory awards is particularly gratifying.”

The 2023 Global Regulatory Awards will take place on 29 November 2023.

22Sep

White Paper Series: Defining the Future VIXIO Webinar

22nd September 2023 Harris Hagan 195

On 15 September 2023, Bahar Alaeddini appeared as a panellist on a VIXIO Regulatory Intelligence (formerly GamblingCompliance) webinar titled “UK White Paper: Defining the Future” together with Tim Miller from the Gambling Commission, Sarah Fox from the Department for Culture, Media and Sport and Dan Waugh from Regulus Partners. The panellists had an insightful and lively discussion about some of the proposals in the recent wave of consultations and next steps:

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