03Apr

No Love in the Time of Coronavirus

3rd April 2020 Julian Harris 382

On 1 April 2020 the Gambling Commission published its annual business plan for 2020-2021. Inevitably this was drafted prior to the onset of the Coronavirus crisis and the ensuing shutdown of all land-based gaming in the UK, although the Gambling Commission has said that it will review the plan at the end of the first quarter, and publish a revised plan if considered appropriate.

In our blog last week I expressed disappointment at the Gambling Commission’s response to the current crisis and suggested a number of measures that complete shutdown of all venues, mass furloughing, redundancies, coupled with continuing costs and zero revenue. Aside from arcane activities such as Russian table tennis there is no mainstream sport on which to offer bets, so the online industry is also affected to a considerable extent.

No such measures have been adopted by the Gambling Commission. Instead, there has been a series of warnings issued to the industry, including a message from Neil McArthur, the CEO, on 25 March 2020. Whilst recognising the impact on the industry of the crisis and referring to a planned assessment of that by the Gambling Commission, in common with his foreword to the business plan, Neil McArthur refers to evidence of an increase in online slots, poker, casino gaming and virtual sports. This is followed by a warning which in effect summarises operators’ obligations under the law and regulations, following the phrase “I want to make the Commission’s expectations absolutely clear”. As regulator, it is perhaps timely to remind operators of their responsibilities. However, while the negative inference here is that there is an increase in gambling overall, the reality is more likely that there is a spike in those products which remain available online, which is more than matched by the disappearance entirely of many others, and the closure of land-based venues.

Similarly, in his foreword to the business plan, Neil McArthur states: “gambling related harm must be drastically reduced”. It is well known that the levels have been static for many years; in fact, they have slightly reduced over the past 10 years. Of course, in an ideal world, no-one would be harmed by gambling. The numbers should be reduced, which is, on any view a laudable aspiration, given we are talking about 400,000 people. Unfortunately, the suggestion that gambling harm must be “drastically” reduced is not only also probably unrealistic, it suggests that it is out of control, which it is not. Once again, this statement risks harming the reputation of the industry and the level of public confidence in it, at a time when the future of certain sectors is in doubt.

The foreword continues with a statement that if operators cannot protect customers from harm the Gambling Commission will suspend and revoke licences. This is standard fayre, but once again the Gambling Commission has expressed its intention to “get even tougher”. This is an indication of an even stricter approach to enforcement. We believe that this may mean even higher financial penalties, fewer regulatory settlements, with more referrals to regulatory panel and possibly more licence revocations in the most serious cases. Most importantly, licensees should be prepared for many more suspensions of licences at the beginning of the enforcement process.

There is a good news story to note. Following collaboration between three industry working groups, the Gambling Commission and the Betting and Gaming Council (the “BGC”), the UK industry has agreed to a series of safer gambling measures, including:

to ensure that VIP players are over 25 and subjected to spending, safer gambling and enhanced due diligence checks;
to set a minimum 2.5-second spin speed on all slots by September 2020 and remove addictive features, such as slam stops and turbo buttons, as well as split-screen features; and
to improve its use of customer data to target advertisements on social media away from vulnerable groups, rather than towards potential customers, as well as creating media only primarily attractive to those over the age of 25.

In their announcement of this development, reported in more detail in our blog yesterday, the Gambling Commission have welcomed the progress made by collaboration with industry, with encouraging and positive remarks about significant progress. There is always more to do, as indeed the BGC acknowledge.

However, the Gambling Commission has accompanied their announcement with comments from Neil McArthur which has in effect downgraded the good news aspect and undermined the good work done by the industry and the new BGC by stating that: “the proposals do not go far enough and we will now consider what additional measures we should impose on operators.” So instead of accepting that this first collaboration has been successful, the industry is pilloried yet again. This further encourages public opprobrium and demonstrates the degree of responsibility that lies with the regulator for the public perception of gambling. It is then followed by another unnecessary threat that risks reputational harm: “Ultimately actions speak louder than words and any operator that does not put consumer safety first will find itself a target for enforcement action.” These remarks dominate and destroy the positives, calling into question whether in such attempted collaboration the Gambling Commission can be regarded as a trusted partner.

This is profoundly disappointing. When even a good news story is translated into further criticism of the industry and threat of enforcement action in relation to new agreed measures not yet even in force, one has to question whether the Gambling Commission has joined the ranks of the anti-gambling lobby. Of course, it should encourage further collaboration with a view to having a well-regulated industry that protects its consumers and the wider public, and take a firm line against those who do not comply with their obligations. But it is not the job of any regulator to wage a publicity campaign against an entire industry. Indeed, to do so, particularly in the midst of a crisis, and as a result continually erode public confidence in the industry, is not only improper, it is likely to raise questions about confidence in the Gambling Commission as regulator.

The Gambling Commission’s own Statement of principles for licensing and regulation requires the Gambling Commission to regulate gambling in accordance with the Regulators’ code “in a supportive, straightforward, risk-based and transparent manner”. In the current crisis, in its recent actions and publications there is little evidence of it being supportive or straightforward. Those on the receiving end of its enforcement action may also question its transparency. It is certainly taking a novel approach to the “need to maintain public confidence in the gambling industry”, as it is obliged to do.

For regulation to be effective it requires a healthy and collaborative working relationship between regulator and those whom it regulates. Playing to the gallery, the press and those who would abolish gambling risks creating an atmosphere of mistrust and suspicion. The Gambling Commission justifiably wants to make gambling fair and safe for all to enjoy. Progress can be made more effectively and speedily by developing the sort of measures just announced in working together with the industry and those who represent it. If, however the industry cannot trust the Gambling Commission to approach such cooperation in good faith, then the future is bleak.

A more detailed blog on the Gambling Commission’s new business plan will follow next week.

02Apr

Update on Gambling Commission Industry Working Groups

2nd April 2020 Bahar Alaeddini 374

On 2 October 2019, Neil McArthur, CEO of the Gambling Commission, delivered a speech at a CEO Breakfast Briefing in London in which he looked back at the year, talked about the challenges in the industry and three opportunities to reduce gambling harm:

opportunity 1: game and product design;
opportunity 2: inducements to gambling; and
opportunity 3: advertising technology.

We discussed these opportunities and industry working groups, formed in January 2020 in pursuit of these opportunities, in a blog post on 17 January 2020.

Yesterday, the Gambling Commission published an update on its “collaborative work” with the industry working groups, which included over 30 licensees, co-ordinated by the Betting and Gaming Council, and involved GamCare and people with lived experience of gambling harm.

Whilst “encouraged by the progress”, Neil McArthur challenged the industry to go further and deliver “real and rapid change for consumers”. He said:

“We set these challenges in order to deliver real and rapid change for consumers in key areas of risk. However, it is important these commitments are implemented as soon as possible. It should not take months to implement safeguards many would expect to be in place already…Whilst we are encouraged by industry proposals for making gambling products safer, we now call on operators to implement those proposals rapidly; but the proposals do not go far enough and we will now consider what additional measures we should impose on operators…Ultimately actions speak louder than words and any operator that does not put consumer safety first will find itself a target for enforcement action.”

Safer Products Working Group (opportunity 1: game and product design)

The industry has agreed to:

A minimum spin speed of 2.5 seconds on all slots.
Removal of game features which may encourage intensive play such as slam stops and turbo buttons.
Removal of split-screen slots which have been associated with potential loss of control.
A more detailed work plan which will include in-game messaging and the creation of a Betting and Gaming Council Testing Lab to investigate other game features.
Publication of the final industry code in September 2020.

The Gambling Commission’s response:

“…this work must now go further and faster, in particular around using demographics and behaviours to indicate risk.”
It will issue a consultation on “priority areas” for immediate action “as soon as possible”.

Incentivisation of High Value Customers Working Group (opportunity 2: inducements to gambling)

The industry has agreed to:

Restrict and prevent under 25s from being recruited to high value customer i.e. VIP schemes.
All customers must first pass thorough checks relating to spend, safer gambling and enhanced due diligence before becoming eligible for high value customer incentives.
Reward programmes will also be required to have full audit trails detailing decision making with specified senior oversight and accountability.
Implement some measures from 14 April 2020.

The Gambling Commission’s response:

It will issue a consultation on how to makes these permanent changes as part of the LCCP.
Expectation that the industry implements its industry code “as soon as possible and considers most measures should be implemented within 3 months.”
It will monitor and support implementation of the industry’s code as an interim measure.

Safer Advertising Online Working Group (opportunity 3: advertising technology)

The industry has agreed to:

Amend the Industry Code for Socially Responsible Advertising by July 2020 to include the points below.
A common list of negative search terms (e.g. how do I self-exclude from gambling?) and suppression websites, which will help shield vulnerable groups from online gambling ads.
Better and more consistent use of customer data to ensure paid-for-ads are targeting away from vulnerable groups across social media platforms, instead of targeting for business.
Implement an approach which means that advertising is only targeted at +25 age in social media and “Pay Per Click” advertising where platform facilities permit. This will protect young people and increase confidence in the social media platforms’ own age-gating.
Age-gating YouTube channels and content.
Adopting and rolling out to all affiliates a code of conduct which will be amended and updated on a regular basis to ensure all measures undertaken by the industry will be implemented equally by affiliates.

This working group will also:

Establish a permanent cross-industry Adtech Forum.
Continue the proactive engagement with a wide range of stakeholders (including platforms).
Work with the Gambling Commission to publish and promote consumer advice, and work with online platforms and broadcasters to identify a more effective, simple and consistent approach, about blocking gambling advertising.
Commit to monitoring and evaluating all actions to ensure only effective solutions are pursued.

The Gambling Commission’s response:

“The industry has developed an appropriate set of commitments which should help further limit exposure to online gambling adverts by vulnerable groups.”
It expects industry to work collaboratively with social media platforms to identify and implement further solutions.
Operators will be “held account for these commitments” from July 2020.

Final thoughts

At the October 2019 CEO Breakfast Briefing, Neil McArthur’s final words were:

“If we work together, I am sure we can make gambling fairer and safer.”

The industry’s response to working with the Gambling Commission and investment in meeting tough timeframes should be applauded. Much work is still to be done, particularly to deliver “real and rapid change for consumers”, as the Gambling commission expects. Widespread action and engagement across the industry when the industry codes are implemented and consultations published will be paramount.

31Mar

Productivity in This Time of Crisis

31st March 2020 David Whyte 363

The widespread closure of land-based gambling businesses, coupled with the impact of a hiatus in sport may, however undesirably, present some operators and suppliers with the opportunity to take advantage of additional spare time and ease regulatory and commercial burdens prior to the much-coveted return to normality.

Annual fees

In its recent update, the Gambling Commission (the “Commission”) has confirmed that due to the structure of its fee system, which is based on secondary legislation, it is unable to offer a reduction in annual fees or accept payment by instalments.

The only two options presented by the Commission are:

licence surrender; and
reducing the annual fee payable by applying to vary an operating licence to decrease the fee category where there is a reduction in gross gambling yield (“GGY”).

While option 2 may sound attractive, only some licensees will benefit. We recommend considering the following points when making a variation application to decrease a fee category:

it is the cheapest type of application and only costs £25.00;
it can be submitted quickly and easily though the Commission’s eServices portal;
apply as early as possible – the guideline processing time (up to eight weeks) is likely to be lengthened as the Commission experiences increased levels of absence;
the annual fee reduction will not take effect until the next annual fee is due; and
licensees who have recently paid their annual fee will not benefit from any such variation this year because the Commission does not issue refunds, as it has no statutory mechanism to do so.

Licensees whose annual fees are due in the coming weeks/months and expect to see a significant reduction in GGY should move quickly and submit variation applications as soon as possible.

Please remember that, in accordance with section 100 of the Gambling Act 2005, annual fees are payable before the licence anniversary and the Commission has the power to revoke an operating licence for non-payment.

Compliance

Neil McArthur, CEO of the Commission, has reminded licensees, particularly online operators, of the safer gambling and AML risks presented by COVID-19 and that consumer protection is paramount. In a message to online operators, on 26 March 2020, he said:

“…whilst I recognise the enormous challenges businesses are facing, I want to make the Commission’s expectations absolutely clear… If we see irresponsible behaviour we will step in immediately. So, whilst I know that the current climate is unprecedented, gambling operators must play their part in making sure that people are kept safe…”

As a follow-up to his blog on 25 March 2020, The Gambling Commission’s Response to the Coronavirus Crisis, Julian Harris will be posting his views on Neil McArthur’s latest message shortly. In the meantime, we strongly encourage licensees to view the Commission’s warning as an opportunity to take stock and respond positively and proactively as this is likely to result in improved business practices. Inevitably, this will reduce workloads when gambling businesses are finally able to operate as normal:

We recommend licensees consider the following:

AML business risk assessment

In accordance with licence condition 12.1.1 of the LCCP, all licensees (other than gaming machine technical and gambling software licences) are required to conduct an assessment of the risks of their business being used for money laundering and terrorist financing. This risk assessment must be reviewed at least annually and amongst other things in the light of any changes in circumstances or other material changes.

Licensees may wish to begin their review of this AML risk assessment now, considering internal business changes and the risks presented by COVID-19 (almost certainly a change in circumstances or other material change). Risk assessments that are part completed in draft now will require less time when premises reopen or sport recommences, meaning key employees can focus on other matters.

AML and safer gambling policies

Licensees should review their AML and safer gambling (“SG”) policies. This review should not just consider the adequacy of the policies now, but also the risks presented by COVID-19. Particular attention should be paid to the levels which trigger AML and SG customer interactions, and the approach taken to consider the customer’s affordability given the likelihood of disrupted income. Consideration should also be given as to how audits are completed, and whether any changes are required. Again, the completion of amendments in draft now will mean less effort and time is spent on this review when normality returns.

Marketing

Operators should review their marketing policies, ensuring new customers are on-boarded in a socially responsible way, cleanse customer marketing databases and review relationships with affiliates. They may wish to audit their affiliates and renegotiate terms to strengthen control and their position to deal with non-compliant affiliates.

Training

Employees who have been furloughed and/or who have not been operating in their primary role for prolonged periods of time, may need refresher training on key areas on their return to work. Licensees should take steps now to ensure that they have plans in place for this, to ensure that the high standards being adhered to prior to COVID-19 are maintained. We will discuss training in a separate blog post shortly.

The strong messages from the Commission to the remote industry during the COVID-19 crisis maintain a pre-existing tone that is likely to continue. Land-based and sports betting operators and suppliers should use this opportunity to their advantage so that they have a renewed sense of focus when the time eventually comes to return to normality.

If you would like to discuss any of these issues, please do get in touch with us.

05Feb

Changing Mindsets

5th February 2020 Francesca Burnett-Hall 332

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:

why we need to make gambling safer;
what he sees as the opportunities to make gambling safer and the risks if those opportunities are not taken; and
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.”

20Jan

Advice to the Gambling Commission on Actions to Reduce Online Harms

20th January 2020 Bahar Alaeddini 389

The Gambling Commission’s independent advisers, the Advisory Board for Safer Gambling (“ABSG”) and the Digital Advisory Panel (“DAP”) were tasked by the Gambling Commission, with looking at reducing gambling harm online. The Gambling Commission has recently published the advice from both advisers.

Advisory Board for Safer Gambling advice

Summary of key recommendations from the Advisory Board for Safer Gambling’s advice, written in September 2019:

Transparency and evaluation: Making assurance statements public documents with written feedback, creating a data repository and updating the evaluation protocol.
Detection of harms: Requiring licensees to be more transparent about the approaches used to detect harm and mandating minimum standards based on the best practice.
Effective interventions: By using the Implementation Plan for the National Strategy to pilot and evaluate a wide range of harm prevention interventions, creating a mechanism to work with experts by experience to co-create effective harm prevention activities, and improvements to the self-exclusion scheme and return to gambling from self-exclusion. Also partnering with the financial services sector and exploring IP blocking powers to disrupt illegal online gaming.
Game design and product characteristics: Improving understanding on product and game characteristics and their links to harm, banning the use of credit cards, customer information on products and risks, banning reverse withdrawals and using further strong enforcement measures.
Stake, prize and speed of play limits: Planning how a regime could be implemented for online gambling and, unless significant progress is made by licensee on player protection, working with the Government to introduce online limits on stakes, prizes and speed of play.
Marketing and advertising: Exploring technological solutions to reduce exposure for children and vulnerable people (including AdTech to proactively restrict exposure) and advocating a precautionary approach in relation to children and vulnerable people.

Digital Advisory Panel advice

The Digital Advisory Panel, which reports to the Board of the Gambling Commission via the CEO, meets approximately six times a year. Presently, it has six members from a range of technology backgrounds, including the current Managing Director of Twitter UK.

The Digital Advisory Panel’s terms of reference refer to the pace of change in the online gambling industry giving rise to new risks, opportunities and regulatory challenges, which the Gambling Commission must be equipped to face. It is envisaged that the Digital Advisory Panel will assist in this challenge by advising on the digital landscape and emerging trends.

The advice, written in September 2019, refers to the Gambling Commission “challenge” as follows:

“The extent and nature of gambling in GB is being transformed by technology, particularly mobile technology. It is also clear that there is no sign that this growth is going to stop. The initial wave of online gambling characterised by the web, mobile apps and the links to social, is being overrun by a second wave of digital technologies impacting on the industry created by big data, analytics, artificial intelligence, the internet of things and wearables.
The impact of this second wave of digital technologies has yet to materialise fully. These technologies present operators with the opportunity to generate further growth by using the techniques developed by social media and games companies to maintain player engagement with their mobile apps and thereby increase their revenue and profits.”

In its advice, the Digital Advisory Panel refers to Ofcom research suggesting that British people:

on average spend 24 hours a week online, twice as long as 10 years ago;
one in five of all adults spending 40 hours online each week;
check their phone every 12 minutes of the waking day; and
two in five adults first look at their phone within five minutes of waking up, climbing to 65% of those aged under 35.

Summary of key recommendations:

Habit forming apps: Regulating software development for apps and sites that promote addictive and compulsive usage. This might include increasing the ‘friction’ of using this software but will certainly involve consultation with operators and academics.
Developing a single customer view: Requiring large operators to form an “arms-length joint venture” that will provide a service that will consolidate a single customer view for all online gambling activity, with improved interventions for problem gamblers and gamblers at-risk and further research into markers of harm and specific gambling triggers.
Online advertising: Requiring operators to report annually on their progress in directing advertising away from problem and at-risk gamblers, and children.
Gambling Commission operations: Avoiding the temptation to build online or digital technologies to monitor the activities of the operators or gamblers and considering the appointment of commissioners with digital awareness.

The Gambling Commission will host a “kick-off event”, in Birmingham, in February 2020 for industry and technology providers on the industry-wide challenge to find a technology solution to creating a single customer view. We expect that details will be published very shortly.

Following both sets of advice, the Gambling Commission has set tough challenges to the industry and expects to see progress on them by Spring 2020.

19Jan

NHS Concerns Over Gambling

19th January 2020 Bahar Alaeddini 336

On 14 January 2020, the head of mental health services in England, Claire Murdoch, penned a bold letter to the chief executives of BetFred, Bet365, Flutter, GVC and William Hill “regarding the increasingly clear and worrying links between gambling and mental ill health”. She refers to having seen “first-hand the devastating impact on mental wellbeing of addiction” and her concern that the prevalence of gambling in our society is causing harm. In December 2019, a report, Skins in the Game, by the Royal Society of Public Health found that over half of young people believe that playing a video game could lead to gambling and that the link between gaming and gambling is a negative one.

Ms Murdoch expresses her concern of tactics used to target those who are chasing their losses and VIP incentives, and refers to incentives that “appear designed to undermine people’s ability to stay in control: bet to view streaming; pervasive advertising; and rewards in exchange for bets, all are likely to make decision-making for vulnerable people significantly harder.” Her letter also refers to the gambling industry having a responsibility “to prevent the occasional flutter turning into a dangerous habit” and requests provision of “urgent detail on actions” being taken to reduce “the likelihood and severity of gambling addiction”.

The letter ends declaring “n industry-wide effort is needed to tackle this, and…seeking reassurance that taking measures, including the following, to minimise harm:

immediately ban credit card bets from your websites – ahead of the gambling commission’s restrictions due to come into force later this year – helping ensure people don’t spend money they don’t have and potentially rack up life changing debt and the anxiety that comes with it;
stop the targeting of high-loss customers with the so-called ‘VIP’ treatment which includes incentives such as free tickets and bets; and
end bet to view commercial deals which require a stake in exchange for sports streaming access.”

The NHS has also confirmed the opening of a new treatment centre for addiction related mental ill health, alongside the 14 gambling clinics announced in the NHS Long Term Plan last year.

On 15 January 2020, Brigid Simmonds, Chair of the Betting and Gaming Council, responded to Ms Murdoch’s letter stating “e take our responsibility to our customers incredibly seriously and we are determined to raise standards and improve safer gambling.” Ms Simmonds acknowledged the important points raised by Ms Murdoch’s letter and summarised some of the work the members had already done, including new age-verification checks, increased funding for research, education and training, the whistle-to-whistle ban on gambling advertising, the creation of GamStop, extensive work on algorithms to help identify those at risk of harmful play and the very recent waived exclusivity on FA Cup games. She added the current work of the Betting and Gaming Council’s on affordability checks, AdTech to block ad, search engines blocking ads from non-UK licensed operators’ advertising and the Safer Gambling Commitments targeted to:

prevent underage gambling and protect young people;
increase support for treatment of gambling harm;
strengthen and expand codes of practice for advertising and marketing;
protect and empower customers; and
promote a culture of safer gambling.

Ms Simmonds’ letter expressed a keenness to understand in greater detail Ms Murdoch’s experience, knowledge and concerns and how the industry may address them, and ended with an invitation to meet with the chief executives.

17Jan

Raising Standards: Gambling Commission Working Groups

17th January 2020 Michelle French 392

On 2 October 2019, Neil McArthur delivered a speech to CEOs at a breakfast briefing in London in which he looked back at the year, talked about the challenges in the industry and three opportunities to reduce harm:

opportunity 1: game and product design;
opportunity 2: inducements to gambling; and
opportunity 3: advertising technology.

In his speech, he referred to the work of the Gambling Commission’s Advisory Board for Safer Gambling (“ABSG”) and the Digital Advisory Panel (“DAP”), which were tasked with looking at reducing gambling harm online. The Gambling Commission has recently received advice from the ABSG and DAP, which we have reported on separately.

The Gambling Commission announced the formation of three industry working groups:

Safer products: The industry code for responsible product and game design working group: This group is led by SG Gaming and Playtech, and will set out how to produce safer products in the future, techniques to use when designing apps, online games and gaming machine products, the risks associated with each product and mitigation, and a clear explanation of what is unacceptable.
Safer advertising online working group: This group is led by Sky Betting and Gaming, and will consider the opportunities to reduce the amount of advertising seen by children, young people and vulnerable adults, and GambleAware’s recent findings set out in its interim report on gambling adverts online, including social media.
Use of VIP incentives: The incentivisation of high value customers working group: This group is led by GVC and will consider bonuses, hospitality and gifts (particularly for VIPs) are offered in a manner which is consistent with licensing objectives to make gambling fairer, safer and crime free, and identify how existing rules can be strengthened.

All three working groups will work closely with the Betting and Gaming Council.

06Jan

New Year, New LCCP: RET Payments

6th January 2020 Michelle French 351

A new version of Licence Conditions and Codes of Practice (“LCCP”) has been published, which came into effect on 1 January 2020.

The main changes relate to social responsibility code provision 3.1.1 and combatting problem gambling. From 1 January 2020, licensees must direct their annual financial contribution for gambling research, prevention and treatment (“RET”) to one or more of the organisations approved by the Gambling Commission.

Licensees must:

make an annual financial RET contribution to each of research, prevention and treatment;
ensure they donate to one or more approved organisations;
ensure they have no connection to the recipient organisation; and
report information accurately in their regulatory return about the destination of their RET contribution and the amount donated (noting it must not include any duplication of data across multiple licences).

The Gambling Commission does not specify the amount which should be contributed as there is, presently, there is no statutory levy.

As of 26 January 2020, the approved list is as follows:

Organisation	Research	Prevention	Treatment
Action on Addiction
Addiction Recovery Agency
Beacon Counselling Trust
GambleAware
GamCare
Gordon Moody
YGAM

The only organisation that meets all three criteria of research, prevention and treatment is GambleAware. Licensees may donate to more than one organisation and, therefore, split their contribution. Organisations will continue to be added to the approved list. There is no cost for working with the Gambling Commission to be added to the approved list.

Licensees are free to donate to other organisations; however, they will not be recognised by the Gambling Commission under the LCCP as RET contributions.

Responsible Gambling