The Gambling Commission has published its latest round of changes to the Licensing Codes and Conditions, following its consultation in 2015. The changes which are intended to prevent crime associated with gambling will come into effect in autumn 2106.
Among the changes are amendments to Licence Condition 5 which will require all Operators holding operating licences (with the exception of gaming machine technical and gambling software licences) to have policies and procedures in place for the use of cash, and cash equivalents by customers. Cash equivalents include bankers’ drafts, cheques and debit cards and digital currencies. The policies and procedures must be intended to reduce the risk of crimes such as money laundering; prevent credit being given to customers and demonstrate that gambling activities comply with the licensing objectives. They must be kept under review to ensure they comply with guidelines published by the Gambling Commission. In addition, Operators holding remote casino, bingo and betting operating licences, (with the exception of ancillary and remote betting intermediary licences) will only be able to accept payment from customers based in Great Britain through regulated payment service providers as defined in the Payment Services Regulations 2009.
A new Licence Condition 12 will require all Operators holding operating licences (with the exception of gaming machine technical and gambling software licences) to carry out a risk assessment of their business being used for money laundering and terrorist financing. The risk assessment must be reviewed at least annually as well as on the introduction of new products, technology, payment methods etc. Operators will also need to put in place policies, procedures and controls to deal with any risks identified. These should be revised when necessary so they remain effective, and comply with guidelines published by the Gambling Commission. The Gambling Commission have said they are still consulting on whether this condition should apply to non-remote lottery licences. In addition Operators holding remote casino operating licences with remote gambling equipment located outside Great Britain must comply with legislation relating to casinos and money laundering and in particular the current Money Laundering Regulations 2007
An addition has been made to Licence condition 15.2 requiring Operators to ensure the Gambling Commission is notified, of any criminal investigation by a law enforcement agency in any jurisdiction, in which the Operator is involved. This includes investigations of crimes allegedly committed against the Operator or involving the gambling facilities provided by the Operator where the Gambling Commission may have reasonable concerns that the Operator’s measures to keep crime out of gambling had failed. The notification must be made as soon as reasonably practicable and in any event within five working days of the Operator becoming aware of any investigation.
An additional Licence Code 4.2.8 will be introduced requiring Operators holding betting operating licences and that are involved in betting on the outcome of a sport regulated by a sport governing body to familiarise themselves with rules applied by the sport governing body on betting, especially betting by registered participants. Operators must make it a condition of their accepting bets, that a bet will only be valid, if the customer placing the bet does not do so in breach of any rules about irregular, and/or suspicious betting, misuse of inside information etc relevant to a sports governing body, which the customer is a member, or their employers. If an operator identifies a breach of these rules it should void the bet.
Furthermore a new Ordinary code provision 7.1.3 will require that all Operators of betting operating licences have employment policies in place that require employees to report any suspicions of irregular and/or suspicious betting to their employer; and prohibit employees from using such information to place their own bets either with their employer or with other operators.
A detailed set of the new and amended LCCPS can be found here