Licensees responsibilities for third parties
Request
There is the following description:
The status of the domain name, this can be “Active”, “Inactive” or “White label”
Please explain the difference and details on these three statuses. Can White Label domains be considered as fully licensed casinos? Can all players play on these domains without any restrictions? Are White Label online casinos still approved by the UKGC as legit sites for UK players – and will it remain so in the future? Inactive domains – this means that they no longer have a full licence? They may have gone to another domain are just stopped work at all?
Response
Thank you for your request which has been processed under the Freedom of Information Act 2000 (FOIA).
In your email you have referenced the following description: The status of the domain name, this can be “Active”, “Inactive” or “White label”
You have requested an explanation as to the difference and details on these three statuses.
Further to this, you have requested the following:
Can White Label domains be considered as fully licensed casinos? Can all players play on these domains without any restrictions? Are White Label online casinos still approved by the UKGC as legit sites for UK players – and will it remain so in the future? Inactive domains – this means that they no longer have a full licence? They may have gone to another domain are just stopped work at all?
Firstly, the explanations of the descriptors you have referenced above are:
- Active – the licensed operator has informed the Commission that they are actively using this domain to offer gambling facilities
- Inactive - not in use anymore or not started to use. Another licensee could use it in future
- White Label - is a domain operated by a licensed operator in partnership with another organisation or operator. The operator holds the license approved by the Gambling Commission.
The Gambling Commission’s responses to the remainder of your enquiries are as follows:
Can White Label domains be considered as fully licensed casinos?
For context, we felt it would be helpful to clarify how white label partnerships work in practice. The Licensee would always be the party that offers facilities for gambling and in most cases, they would run the mechanics of the websites that transact with consumers. This would ensure that the licensee is offering facilities for gambling. Therefore, any activity on those ‘white label’ branded websites is the responsibility of the Licensee.
Some licensees may not offer facilities for gambling under their own business name and would only offer facilities for gambling under white label brands. The relationship between the licensee and the white label partner is better described as a marketing agreement rather than an agreement to provide facilities for gambling.
To be clear, the responsibility for compliance of all operating gambling websites, including white labelled sites, sits with the licence holder and cannot be transferred to any other party. By extension, any breaches which occur in the course of gambling activity is the liability of the licensee, not the white label partner. A white label marketing partner cannot offer facilities for gambling themselves unless they hold a relevant licence.
White Labels can be any type of online gambling including casinos. It is the operator which is the licensee.
Can all players play on these domains without any restrictions?
Operators allow players in accordance with the Licence Conditions and Codes of Practice (LCCP). For example, players must be 18 or over. Any site offered under a White Label agreement is ran exactly the same as a website offered directly in reliance on a licence
Are White Label online casinos still approved by the UKGC as legit sites for UK players – and will it remain so in the future?
The Gambling Commission does not approve online domains/White Labels, it is the Operator that is approved as a Licensee. See the Gambling Commission website for further information on White Label partnerships - Licensees responsibilities for third parties
The operator would need to ensure that due diligence is conducted on a White Label partner.
The operator is required under LCCP 15.2.1 to report changes to domain sites (including White Labels) which become active or inactive.
At this point the Commission can check that the Domain name complies with regulatory requirements specifically LCCP, Committees of Advertising (CAP) and Broadcast Committee of Advertising Practice (BCAP) advertising codes including if the name may have particular appeal to children.
In the event the domain name may raise concerns, consideration would be given to asking the operator for further information about age verification checks and for more information about how the domain will be marketed and what the website will look like.
Inactive domains – this means that they no longer have a full licence? They may have gone to another domain or just stopped work at all?
No, it’s the operator which holds the Licence and not the White Label.
An inactive domain is not currently in use. It could be used in future by the operator or another operator.
The public register, on the Gambling Commission website contains current active and inactive domains per operator - Public Register
Review of the decision
If you are unhappy with the service you have received in relation to your Freedom of Information request you are entitled to an internal review of our decision. You should write to FOI Team, Gambling Commission, 4th floor, Victoria Square House, Victoria Square, Birmingham, B2 4BP or by reply to this email.
Please note, internal review requests should be made within 40 working days of the initial response. Requests made outside this timeframe will not be processed.
If you are not content with the outcome of our review, you may then apply directly to the Information Commissioner (ICO) for a decision. Generally, the ICO cannot make a decision unless you have already exhausted the review procedure provided by the Gambling Commission.
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The ICO can be contacted at: The Information Commissioner’s Office (opens in a new tab), Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF.
Information Management Team
Gambling Commission