Out-Law News 2 min. read

Gambling Commission seeks to reassure operators over security of online filing system


Some gambling operators will be required to submit their regulatory returns to the Gambling Commission electronically under reforms the Commission has said will deliver cost savings within the industry.

Companies with remote casino, betting and bingo licences, as well as those with a gambling software operating licence will be required to submit regulatory returns electronically, according to the Commission's plans.

The Commission acknowledged that concerns have been raised about the security of its online filing system but said a number of measures were in place to protect the confidentiality of files. Currently, the operators have been able to submit regulatory returns in electronic or paper form.

"Concerns have previously been raised over the security of submitting data electronically," the regulator said in its consultation paper. (27-page / 374KB PDF) "The Commission would reiterate that procedures are in place to ensure that data is stored securely with controls to prevent access. Our online system is encrypted and requires licensees to authenticate themselves before being able to submit and access their own data."

"We have been accredited against the ISO: 27001 standard since 2010. This is an internationally recognised standard for evaluating how securely an organisation manages and stores its information. As a public authority, the Commission also adheres to the Security Policy Framework and supporting guidance issued by Cabinet Office to ensure that the information we process is handled and stored in a secure manner in line with best practice and HMG requirements," it added.

Gambling law expert Audrey Ferrie of Pinsent Masons, the law firm behind Out-Law.com, said that gambling operators submit commercially sensitive information to the regulator and therefore have a right to expect the Commission's systems to be secure.

"Under the Commission's plans, regulatory returns to be submitted electronically could range from sensitive financial information, such as details about revenue sharing agreements with other businesses, as well as the number of active customer accounts, information about unresolved disputes and suspicious activity reports," Ferrie said. "Gambling operators are rightly eager to avoid this information falling into the wrong hands."

The Commission recently outlined separate plans to change regulatory requirements around the process for applying for a remote operating licence. Under those plans, gambling operators would be required to submit their applications online.

Ferrie said data recovery and backup arrangements would need to be outlined by the Gambling Commission in the event of faults arising with either the online application or regulatory returns systems. She also called for improvements to be made to the Commission's website if a shift to online-only submissions is to work. She said the website current is not very "user-friendly" and that it also suffers from reliability issues.

Ferrie also highlighted the "added administrative burden" that she said gambling operators would face under the latest proposals on regulatory returns. She said the companies regulated by the Commission would be required to issue separate regulatory returns relating to their Great Britain (GB) based customers and for non-GB customers.

Under new gambling laws expected to be brought into force early next year, remote gambling would be regulated on the basis of where bets are placed - from the 'point of consumption' (POC). Betting companies based anywhere in the world would need to obtain a licence from the Gambling Commission if they want to advertise or transact with GB-based consumers under those proposals.

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