Stakers Limited

Request

I note from a recent internet search that you issued a public notice regarding Stakers Limited on 5 March 2020 - a notice in which you state the operator is 'unsuitable to carry on the licensed activities'.

Can you please provide me with some additional information as outlined below. REDACTED

1. Please provide further details of the matters referenced in your 5 March 2020 notice, which led you to the realisation that Stakers Limited is 'unsuitable'?

2. Please confirm if the Stakers license remains 'suspended' or is now 'terminated'?

3. Please describe the checks that were carried out when Stakers originally applied for and obtained its licence? In particular, how did you confirm that the Malta address listed in Stakers' application is genuine? REDACTED. A google street view search appears to show that the address does not even exist.

4. When did you receive your first complaint or allegation in relation to Stakers, specifically about the conduct which led you to eventually suspend their license?

Response

Thank you for your request regarding Stakers Limited, which has been processed under the Freedom of Information Act 2000 (FOIA).

The Gambling Commissions responses to your enquiries are detailed below.

1. Please provide further details of the matters referenced in your 5 March 2020 notice, which led you to the realisation that Stakers Limited is 'unsuitable'?

The Commission is a regulatory body with licensing, compliance, and enforcement functions; through our regulatory activity, the Commission aims to protect consumers and the wider public, and to raise standards in the gambling industry. We release details of our enforcement activity through public statements.

The public statements will detail the nature of the failings by the operator and the amount of the fine or settlement. Further to this, the Commission also publishes a list of recent regulatory sanctions we have imposed on licence holders.

When we publish these statements and sanctions, we take care to present as much information as possible to ensure that lessons can be learned by operators. However, we must also be careful not to reveal any information that could hinder our ability to conduct investigations or enable those we may investigate to avoid detection.

Section 31(1)(g) exempts information where disclosure would, or would be likely to, prejudice the exercise by any public authority of its functions for any of the purposes specified in subsection (2).

The Commission considers the subsections below apply and therefore the information is exempt from disclosure:

i. Subsection 31(2)(a) refers to the purpose of ascertaining whether any person has failed to comply with the law,

ii. Subsection 31(2)(b) refers to the purpose of ascertaining whether any person is responsible for any conduct which is improper,

iii. Subsection 31(2)(c) refers to the purpose of ascertaining whether circumstances which would justify regulatory action in pursuance of any enactment exist or may arise,

iv. Subsection 31(2)(d) refers to the purpose of ascertaining a person’s fitness or competence in relation to the management of bodies corporate or in relation to any profession or other activity which he is, or seeks to become, authorised to carry on.

Section 22 of the Gambling Act 2005 sets out that the Gambling Commission is responsible for regulating and promoting licencing objectives as set out in section 1 of the Gambling Act 2005.

The statutory duties laid out in section 1 are:

a) preventing gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime,

b) ensuring that gambling is conducted in a fair and open way, and,

c) protecting children and other vulnerable persons from being harmed or exploited by gambling.

Through our regulatory activities we aim to protect consumers and the wider public by raising standards within the gambling industry.

As part of our regulatory activities, we will have dialogue with operators and third parties to establish facts to inform our decision-making process before reaching a final outcome.

Any information that we can publicly disclose in relation to particular regulatory activities is made available on our website at the appropriate time so as not to disclose any information that could impact on our ability to make enquiries and conduct investigations or enable those we investigate to avoid detection.

The Commission therefore concludes that the disclosure of this information relating to the outcome of the enquiries would prejudice the regulatory functions of the Commission.

Public interest test

The factors the Commission has considered when applying the public interest test have been detailed below and our view is that the public interest lies in favour of applying the exemption.

In favour of disclosure

The Commission is a public body which is required to regulate the gambling industry in the public interest.

There is therefore a public interest in members of the public having confidence the Commission is being open and honest with the information it holds so that it can be held to account.

Disclosure of the requested information could provide the public with the information that they need in order for them to make an informed decision with regards to whether they wish to participate in the activities of a particular operator.

In favour of maintaining the exemption

There is an expectation of confidence in much of the Commission’s work. It is the impact on this work of the Commission which is more likely to be affected by disclosure of the information. Should the Commission be required to disclose sensitive and confidential information about the status and nature of its enquiries and inquiries in a particular investigation it may prejudice that particular investigation, thereby inhibiting our ability to protect consumers.

Disclosure of this information would also undermine the Commission's ability to uphold the licensing objectives (as noted above) which would impact on the trust and confidence of the public in it as a regulator.

Operators are required to provide detailed information and there are statutory mechanisms in place to compel the provision of information, but this is not the most effective way to obtain information. The Commission relies on the voluntary provision of information to perform its functions and open and frank exchanges are integral to the decision-making process.

Disclosing information without sufficient rationale would also undermine this trust and make operators less likely to cooperate with requests in future. This would potentially result in the Commission having to use its more formal statutory powers in the future, leading to more guarded disclosures which would not be in the public interest.

Weighing the balance

The Commission acknowledges that there is a public interest in promoting the accountability and transparency of public authorities and the importance of having sufficient information in the public domain to support consumers with their choice of operator, however, disclosure of the information would be damaging to the Commission as a regulatory body which ultimately serves to protect the wider public interest.

It is important that the public are assured that the Commission is carrying out its functions in ensuring that any individuals or operators who are involved in providing gambling facilities to the public have undergone the necessary assessments and will uphold the licencing objectives ensuring that consumers are protected.

However, there is a strong public interest in preserving the processes that the Commission has in place to assess operators’ compliance with the Gambling Act 2005. The public trust that the Commission has robust processes in place to assess operators so that when they use the services provided by an operator, they are confident that there has been sufficient scrutiny of that operator to ensure that they are protected. If this information were released it would undermine that confidence.

We consider that the public interest is better served by withholding the information relating to the outcome of the enquiries ensuring that consumers are protected through our processes rather than releasing information which in our view will not benefit the public.

2. Please confirm if the Stakers license remains 'suspended' or is 'now terminated'?

We publish registers of licensed businesses and individuals here:

Register of gambling businesses - Gambling Commission.

Section 21 of the FOIA provides that information is exempt where it is reasonably accessible elsewhere.

The publicly available licence details for Stakers Limited, including the status of their licence, can be viewed here:

Stakers Limited - Licence summary - Gambling Commission.

3. Please describe the checks that were carried out when Stakers originally applied for and obtained its licence? In particular, how did you confirm that the Malta address listed in Stakers' application is genuine?

Gambling operators are required to hold a licence from the Commission in order to offer facilities for gambling to customers located in Great Britain. The Commission goes through a licence application process as part of this and makes an assessment of suitability against criteria set out in the Act. Part 5 of the Gambling Act 2005 details the Commission’s statutory functions in relation to the licensing requirements. The Licence conditions and codes of practice (LCCP) set out the requirements all licensees must meet in order to hold a Gambling Commission licence.

Licensees and Businesses - Gambling Commission.

When we receive licence applications an assessment is made on whether a business will uphold the licensing objectives and also the suitability of the applicant to carry out the activities that the licence allows. As part of this assessment the Commission will request the following evidence to support the application and the individuals who are relevant to the application, such as:

• the identity of the individuals,
• financial and other circumstances including resources available to carry out licensed activities,
• integrity – honesty and trustworthiness,
• competence – experience, expertise, qualifications and history,
• criminality – criminal record.

Large volumes of information, regarding how we process a licence application can be found on our website:

Licences and fees - Gambling Commission.

These checks are carried out to ensure that we meet our obligations under the Act and our Statement of Principles.

Principles - Gambling Commission.

Once licensed, gambling operators are subject to ongoing compliance requirements and are subject to regulatory action should they fail to meet their licence requirements.

Information collated as part of this process is used to assess whether a person or entity is fit to hold a licence.

I can confirm that further information falling within the scope of your request is held. However, the Commission is of the view that any information in relation to specific operators, other than what is made publicly available, is exempt from disclosure under section 31(1)g of the FOIA (‘law enforcement’) and therefore will not be released.

Section 31(1)(g) exempts information whose disclosure would, or would be likely to, prejudice the exercise by any public authority of its functions for any of the purposes specified in subsection (2).

The Commission considers the subsections below apply and therefore the information is exempt from disclosure:

i. Subsection 31(2)(a) refers to the purpose of ascertaining whether any person has failed to comply with the law,

ii. Subsection 31(2)(b) refers to the purpose of ascertaining whether any person is responsible for any conduct which is improper,

iii. Subsection 31(2)(c) refers to the purpose of ascertaining whether circumstances which would justify regulatory action in pursuance of any enactment exist or may arise,

iv. Subsection 31(2)(d) refers to the purpose of ascertaining a person’s fitness or competence in relation to the management of bodies corporate or in relation to any profession or other activity which he is, or seeks to become, authorised to carry on.

Public interest test

The factors the Commission has considered when applying the public interest test have been detailed below and our view is that the public interest lies in favour of applying the exemption.

In favour of disclosure:

• The Commission is a public body which is required to regulate the gambling industry in the public interest. There is therefore a public interest in members of the public having confidence the Commission is being open and honest with the information it holds so that it can be held to account.
• It is important that the public are assured that the Commission is carrying out its functions in ensuring that any individuals or organisations who are involved in providing gambling facilities to the public have undergone the necessary assessments and will uphold the licencing objectives ensuring that consumers are protected.
• Disclosure of the requested information could demonstrate to stakeholders and relevant parties how the Commission is assessing licensees and, furthermore, this disclosure may encourage stakeholders to work with us and contribute to our programme of work, increasing confidence in the Commission as a regulator and its ability to uphold the law.

In favour of maintaining the exemption:

• The Commission has robust and effective processes and procedures in place which are utilised when assessing existing licensees. These procedures and processes have been put in place to minimise the risk of an operator continuing to provide gambling services where they do not meet the required standards. This demonstrates to the public at large that they can have confidence in the Commission’s compliance assessment processes.
• There is an expectation of confidence in much of the Commission’s work, particularly when discussing areas of a licensee’s compliance with the LCCP. It is the impact on this work of the Commission which is more likely to be affected by disclosure.
• The amount of information the Commission can release relating to our specific discussions about a licensee could lead to potentially non-compliant licenses altering their behaviour specifically to meet the Commission’s standards purely for application purposes. This in turn may impact on the Commission’s function of ascertaining a gambling operator’s fitness to carry out gambling activities.
• Disclosure of this information would also undermine the Commission's ability to uphold the licensing objectives which would impact on the trust and confidence of the public in it as a regulator.
• Further, disclosure of the requested information would prejudice the outcome of future assessments of applicants by the Commission by exposing assessment techniques and practices to the detriment of the public interest.

Weighing the balance

The Commission acknowledges that there is a public interest in promoting the accountability and transparency of public authorities and the importance of having sufficient information in the public domain to support consumers with their choice of operator, however, disclosure of the information would be damaging to the Commission as a regulatory body which ultimately serves to protect the wider public interest.

It is important that the public are assured that the Commission is carrying out its functions in ensuring that any individuals/organisations who are involved in providing gambling facilities to the public have undergone the necessary assessments and will uphold the licencing objectives ensuring that consumers are protected.

However, there is a strong public interest in preserving the processes that the Commission has in place to assess operators’ compliance with the LCCP and identify any operators who will be unable to comply with the licensing requirements. The public trust that the Commission has robust processes in place to assess operators so that when they use the services provided by an operator, they are confident that there has been sufficient scrutiny of that operator to ensure that they are protected. If this information were released it would undermine that confidence.

We consider that the public interest is better served by withholding this information, ensuring that consumers are protected through our processes rather than releasing information about our processes which in our view will not benefit the public as a whole.

4. When did you receive your first complaint or allegation in relation to Stakers, specifically about the conduct which led you to eventually suspend their license?

The Gambling Commission is an industry regulator and not an ombudsman. Our role is to consider if a gambling business has breached their licence conditions and we will take regulatory action where appropriate.

We do not become involved in or “act upon” individual complaints.

We use evidence from a range of places, including from gambling customers, to build cases against gambling businesses. Information provided to us helps inform our work to raise gambling industry standards and make gambling fairer and safer. Information drawn from complaints raised against operators may be used by the Commission to inform our regulatory approach and determine whether any action may be necessary.

If we have sufficient information about an issue with an operator that we feel needs to be pursued, we will commence a dialogue with the operator.

As previously explained, the Commission is a regulatory body with licensing, compliance and enforcement functions; through our regulatory activity, the Commission aims to protect consumers and the wider public, and to raise standards in the gambling industry. We release details of our enforcement activity through public statements.

The public statements will detail the nature of the failings by the operator and the amount of the fine or settlement. Further to this, the Commission also publishes a list of recent regulatory sanctions we have imposed on licence holders.

The Gambling Commission do not provide comment on any information held regarding specific operators unless it is in the public interest to do so. As such, we are unable to confirm or deny whether we hold any information within the scope of this part of your request.

Section 31(3) of the FOIA (Law Enforcement) exemption applies.

Section 31

Section 31(3) provides that the duty to confirm or deny does not arise if, or to the extent that compliance with section 1(1)(a) would or would be likely to, prejudice any of the matters mentioned in subsection (1).

Public interest test

Having acknowledged that the Commission is not able to confirm or deny whether we hold any information within the scope of your request; section 31 of the FOIA requires that we consider a public interest test to identify whether there is a wider public interest in fulfilling this request as opposed to maintaining the exemption.

Arguments in favour of disclosure

• The Commission is a public body which is required to regulate the gambling industry in the public interest. There is therefore a public interest in members of the public having confidence that the Commission is being open and honest with the information it holds so that it can be held to account.
• It is important that the public are assured that the Commission is carrying out its functions in ensuring that any individuals or organisations who are involved in providing gambling facilities to the public have undergone the necessary assessments and will uphold the licencing objectives ensuring that consumers are protected.
• Disclosure of the requested information could demonstrate to stakeholders and relevant parties how the Commission is assessing licensees and, furthermore, this disclosure may encourage stakeholders to work with us and contribute to our programme of work, increasing confidence in the Commission as a regulator and its ability to uphold the law.

Arguments in favour of maintaining the exemption

• Confirming or denying information which makes specific individuals or events identifiable could alert individuals involved to the fact that the Commission was/is or alternatively wasn’t/isn’t investigating a particular case and provide them with an opportunity to alter their behaviours or evade detection. This would result in making it more difficult for the Commission to achieve its regulatory aims.
• Further to this, simply confirming or denying this request for information would impact on the openness of stakeholders when sharing important information with us or other law enforcement agencies.
• The amount of information released is carefully considered in order to protect the integrity of investigations and individuals or operators from being unfairly associated with unsubstantiated allegations.
• Finally, only once or if a formal regulatory decision has been made or there is agreement of a regulatory settlement the Commission will ordinarily publish all such decisions in full. Fulfilling this request may prejudice the outcome of any future investigation by the Commission, or another body, to the detriment of the public interest.

Weighing the balance

Given the points considered, the Commission believes that the interests of the public are better served through maintaining the exemption, therefore we are not in a position to confirm or deny whether we hold any information in relation to this part of your request.

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.

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
Victoria Square House
Victoria Square
Birmingham B2 4BP