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British gambling regulator lays out plans to toughen approach to enforcement


Gambling providers that breach conditions of their operating licence should not expect to be able to settle cases with the regulator in future, according to new proposals which have been outlined.

A more formal investigation and review of that provider's licence will be the default approach adopted in such cases, the Gambling Commission said in setting out new plans to change its enforcement strategy (68-page / 1.03MB PDF).

"We have amended the language to avoid creating an expectation on the part of a licensee that regulatory settlement will be preferred to a formal licence review," the Commission said.

The Commission will only look to "fulfil its statutory obligations and pursue the licensing objectives through means that stop short of formal licence reviews" only in "certain, limited, circumstances" when it is "appropriate" to do so. Pursuing a settlement with gambling operators is one of the options the regulator could explore in those cases, but it "will not normally initiate the regulatory settlement process", it said.

The Commission has opened a consultation on the proposals. Industry and other stakeholders have until 21 April to respond.

Gambling licensing and regulation expert Christopher Rees-Gay of Pinsent Masons, the law firm behind Out-Law.com, said the reforms proposed by the Commission chime with comments made by the Commission's chief executive, Sarah Harrison, in a speech at the regulator's ‘Raising Standards' conference in November last year.

"The Commission’s new stance wants to put consumers at the core of their approach to regulation," Rees-Gay said. The key changes that they are consulting on include, in enforcement terms, wanting to remove the bias in favour of settlement rather than formal licence review. There are also proposals to include higher penalties for breaches, as well as a move to introducing time-limited discounts, to avoid settlements being too drawn out."

"I do not think that the timing of the consultation is a coincidence, with one of the world's biggest business-to-business gaming technology events – ICE Totally Gaming – taking place in London in under two weeks," he said. "The findings of the consultation will be interesting, as I do not think the proposed changes will be welcomed by any operators."

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