Casino operators responsible for poker competitions involving third party operators

The Commission said that casino operators must ensure that competitions being run on their premises, even by staff, and through the computer systems of, "online partners", comply with the terms of their licence. 

Gambling law expert Audrey Ferrie of Pinsent Masons, the law firm behind Out-Law.com, said that it was right that casino premises licence holders required poker competitions originating online to comply with their licensing conditions. 

"It is analogous to a drinks company arranging with a publican to promote their brand of drinks within pub premises," Ferrie said. "If the drinks promoter gave alcohol to an underage person within the pub the licence holder would be the one on the hook." 

According to the guidance (4-page / 61KB PDF), casino operators "must bear full responsibility" for poker competitions held on their premises, even where "a third party organisation is involved" in that competition. 

Where casino operators get together with an online gambling operator and agree to host on its premises the live final of a poker competition that started online, the premises licence holder is ultimately responsible for that competition, the Commission said. The casino operator is only allowed to host such a competition in partnership with online operators that are licensed within the European Economic Area, Gibraltar or a 'white listed' jurisdiction. 

The Commission's guidance envisages circumstances where all the finalists stemming from an online poker competition gather within the premises of the licensed casino operator to compete. It also envisages circumstances where only some of the participants in the competition are present on-site with others playing remotely from another location. 

The responsibility for the live final of an online poker competition hosted within a casino remains with the casino operator even if the competition is run by the staff of the online partner and involves the use of computer systems provided by the online operator. 

"The computer system used for administering the competition may be provided by the online operator; however the overall control of the gaming including cash handling must fall under the jurisdiction of the casino management," the Gambling Commission said. 

Casino operators would also be responsible for determining whether to engage in "customer interaction with the player" if the computer systems of their online partner "detects a player that is excluded from the online site".

Ferrie said that, in referencing customer interactions, the Commission was referring to the casino operator abiding by its social responsibility commitments to tackle problem gambling, such as by offering advice to players it deems to be addicted to gambling. 

Ferrie also pointed out that the Gambling Commission does not have jurisdiction to regulate the activity of online operators based outside of Great Britain. In its guidance the Commission said that where casino operators partner with online poker operators to jointly run a "land based/internet competition", the casino operator would have to "be satisfied that the rules applied in the casino are equally applied online". 

"If there is a breach of a non-Great Britain-based online operators' licence it would not be a matter for the Gambling Commission but rather would be a matter for another regulator based in same jurisdiction as the online operator," Ferrie said. 

Under proposed reforms to remote gambling regulation, gambling operators wishing to offer remote gambling services in Great Britain would be required to hold a 'remote operating licence' (ROL) in order to promote that service or do business with customers in Great Britain. Under the draft Gambling (Licensing & Advertising) Bill  the Government has proposed that remote gambling be regulated on the basis of where bets are placed - from the 'point of consumption' (POC). 

Elsewhere in its guidance the Commission said that it was legitimate for casino operators to host, within their licensed premises, the final game of a poker competition that started in pubs or clubs. 

However, Ferrie said it was a step too far for  the Commission to ask casino premises licence holders to check whether the organiser of those pub or club poker competitions or leagues had complied with the "statutory limits for poker" on their own premises in the build up to those finals. That was a role the Commission itself should be responsible for performing, she said.