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Harris Hagan

Harris Hagan

05Feb

Changing Mindsets

5th February 2020 Harris Hagan Harris Hagan, Responsible Gambling 416

After a marked absence from ICE, Neil McArthur, the CEO of the Gambling Commission, gave a keynote speech at the ICE World Regulatory Briefing, on 3 February 2020, titled “Changing Mindsets”, talking about:

  1. why we need to make gambling safer;
  2. what he sees as the opportunities to make gambling safer and the risks if those opportunities are not taken; and
  3. how he thinks a change of mindset can help – regulators, operators, advisers and suppliers – make gambling safer.

McArthur proclaimed that the gambling industry needed to “be bold”, setting out his case for change and why he considered it to be necessary.  With public trust and participation rates declining, he referred to the “wholly unacceptable state of affairs” with 340,000 problem gamblers and 1.6 million at risk (data published by Public Health in 2016), and declared that these numbers needed to “radically reduce”, necessitating a “comprehensive public health response”.

Unlike previous ICE speeches, this speech appeared to be written for the consumption of the Gambling Commission’s critics, rather than its subjects. 

One of the focuses of the speech was the Gambling Commission’s view of collaboration and the need to look at “complex problems” from “as many different angles as possible”, including those with direct or indirect “lived experience” of gambling related harm.  In response to recent criticism from Carolyn Harris MP, following an earlier speech on collaboration, McArthur addressed the appropriateness of a regulator collaborating with its licensees, clarifying two things: (1) it was not self-regulation; and (2) licensees cannot set or mark their own homework. The fruits of the working groups will be “stress tested” before the next Raising Standards Conference and only the Gambling Commission will decide what regulatory changes should follow in the LCCP or Remote Technical Standards, with advice from the Advisory Board for Safer Gambling, Digital Advisory Panel and insights from people with lived experience of gambling harm. 

The other focus of the speech was the effect mindset can have on performance, citing the performance coach Matthew Syed.  McArthur highlighted too much emphasis being placed on public relations, not addressing the public health issue, and the need for a change in culture by “disrupt old mindsets…to create positive change for consumers and approach the challenges we face in a different way.” He called upon those at the top to change the tone to achieve tangible outcomes and expressed his preparedness “to work with anyone who shares determination to make rapid, positive changes to protect consumers from harm.”

Although abundantly clear already, McArthur spelt out that only the Gambling Commission will judge whether efforts adequately address harm to consumers and, if not, all options will remain on the table, with the Gambling Commission getting “tougher and tougher”.  He stated that “the time to think of this as a competition between ‘poachers’ and ‘gamekeepers’ has gone…We each have a different part to play, but that must be our goal. If that isn’t anyone’s goal they need to leave the industry.”

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03Feb

Gambling Commission Consults on Remote Key Equipment Changes

3rd February 2020 Harris Hagan Harris Hagan 385

All online gambling businesses providing facilities for gambling have remote gambling equipment, known as “key equipment”.  This is recorded in Schedule R of their Gambling Commission remote operating licence. 

On 30 January 2020, the Gambling Commission published a consultation on the removal of the variation application and notification requirements in relation to key equipment. The consultation proposes that licence conditions 2.1.1 and 15.2.1(7) of the Licence Conditions and Codes of Practice be removed entirely so that operators will no longer need to notify the Gambling Commission of any changes to key equipment, either by way of a key event or an application to vary. 

Currently, if a gambling business wants to relocate their key equipment to a different jurisdiction, they are required under licence condition 2.1.1 to apply to vary their remote operating licence.  The key equipment must not be moved until the application has been granted and an amended remote operating licence issued, which can take several weeks. Additionally, where a gambling business moves key equipment within a jurisdiction, this must be reported as a key event under licence condition 15.2.1(7).  The Gambling Commission’s rationale was so that it could physically inspect the key equipment; however, it has acknowledged this is rarely needed, particularly as many gambling businesses have moved to the cloud.  

The requirements are complex, with most not understanding them, particularly when involving aggregation platforms and other suppliers.  In many cases, Schedule Rs have 100s of entries and run to 10s of pages.  Also, the requirements are hugely burdensome for operators and suppliers, often causing business disruption needing to wait for determination by the Gambling Commission.  They are also burdensome for the Gambling Commission, with the effort required not reflected in the £25 application to vary fee.  

Licence condition 2.1.2 will remain in place and will continue to allow the Gambling Commission to access remote equipment and/or request copies of data held on the equipment, which it considers is all it now requires. The consultation closes on 26 March 2020 and it is proposed that the changes should come into effect in July 2020.  Responses to the consultation can be submitted here and we strongly recommend all online gambling businesses to respond with support for the Gambling Commission’s proposals.

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03Jan

John Hagan’s Interview @ G2E 2019

3rd January 2020 Harris Hagan Harris Hagan 426

Jan Jeffcoat interviews John Hagan at the Play+ Media Booth at Global Gaming Expo (G2E) in Las Vegas on 16 October 2019.

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    London
    EC4Y 0HA

    +44 (0)20 3334 8225

    [email protected]

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