Consultation response
Autumn 2023 consultation – Proposed changes to LCCP and RTS: Consultation Response
This response sets out our position in relation to the consultation on the proposed changes to LCCP and Remote Gambling and Software Technical Standards.
Contents
- Executive summary
- Summary of topics
- Customer-led tools - Consultation Response
- Improved transparency on customer funds in the event of insolvency - Consultation Response
- Removing obsolete Gambling Commission requirements due to the government's upcoming statutory levy - Consultation Response
- Evaluating the impact of relevant changes
- Annex
Summary of responses and our position to the consultation on removing obsolete Commission requirements due to the government's upcoming statutory levy
We consulted on removing the existing requirement at paragraph 2 of Social Responsibility (SR) Code Provision 3.1.1 – Combating problem gambling which requires licensees to make an annual financial contribution to one or more organisation which delivers or supports research into the prevention and treatment of gambling-related harms, harm prevention approaches and treatment for those harmed by gambling on a list maintained by the Gambling Commission (sometimes referred to as the LCCP RET list).
We proposed that the removal of the SR Code Provision would come into effect either at the point at which the statutory levy comes into force, or at the beginning of the relevant financial year. The rationale for this was to ensure that voluntary funding for RET is maintained during any transition period, whilst also avoiding the potential for 2 funding systems to be running concurrently and creating any confusion or duplication.
Consultation questions
To what extent do you agree with the proposed change to remove paragraph 2 of SR Code Provision 3.1.1?
Can you foresee any issues related to the proposed timing for removing this SR Code Provision?
Are there any additional issues related to the removal of this SR Code Provision, or other practical considerations that we should consider?
Respondents’ views
The consultation responses showed that the majority of respondents were supportive of the proposal and agreed that paragraph 2 of SR Code 3.1.1 would become obsolete under a statutory levy. There was also support for retaining the current wording around social responsibility requirements in paragraph 1 of SR Code 3.1.1.
The main concern from respondents, both those who were in support of the proposal and the small minority against, related to the timing of the removal, in particular the risk of overlap, confusion or potential double-funding across the current voluntary system and the statutory levy. However, this was not felt to be an insurmountable risk. Respondents were of the view that it could be managed and minimised through clear communications to gambling businesses and other stakeholders, particularly around the timing of the removal, as well as ongoing engagement with government and commissioning and delivery bodies in receipt of RET funds to facilitate a smooth transition and avoid any disruption in financial contributions or regulatory compliance.
Some respondents were also concerned that the removal of the LCCP RET list and the introduction of the statutory levy could have a negative impact on existing charities and third sector providers currently delivering projects and programmes within the voluntary RET system. A small number of respondents suggested that the LCCP RET list should be retained for any category of licensee to whom the statutory levy might not apply.
In terms of timing, there was support for the Commission to remove the existing SR code provision to align with the April to March financial year as this would allow for a full year for RET contributions to benefit external organisations under the existing voluntary system rather than switching off the voluntary system and implementing the statutory levy within the same financial year which could be confusing for both licensees and recipient bodies.
One respondent was of the view that treatment for and research into gambling as an addiction should be funded through general taxation as with other addictions and disorders such as drugs, alcohol and mental health services, rather than through a separate levy.
Representatives from the lotteries sector were particularly concerned that the introduction of a statutory levy would have the unintended consequence of reducing the level of funding available for good causes.
Our position
We have carefully considered all of the responses to the consultation and intend to proceed with our proposal to remove the existing requirement at paragraph 2 of Social Responsibility Code Provision 3.1.1 – Combating problem gambling which requires gambling business to make an annual financial contribution to one or more organisation on the LCCP RET list which delivers or supports research into the prevention and treatment of gambling-related harms, harm prevention approaches and treatment for those harmed by gambling. We will remove the existing requirement (and associated list) close to the introduction of the statutory levy which is intended to come into effect on 6 April 2025 in line with the new financial year.
As we did not propose any changes to paragraph 1 of the existing SR Code Provision this will remain in effect. Paragraph 1 requires licensees to have and put into effect policies and procedures intended to promote socially responsible gambling. This includes specific policies and procedures required by code of practice provision 3 of the LCCP which relate to the protection of children and other vulnerable people including policies in relation to preventing underage gambling, the provision of gambling management tools, customer interaction and self-exclusion.
We acknowledge the concerns of some respondents that the change from the current voluntary RET system to the statutory levy may have a negative impact on existing charities and third sector providers currently delivering projects and programmes, but the decision to introduce the statutory levy and its design is a matter for government and falls outside the scope of this consultation which relates only to updating the LCCP.
We have also considered the practicalities of retaining a version of the current LCCP RET list as proposed by a few respondents but on balance we believe that this would be confusing and potentially unhelpful. However, we wish to remind gambling businesses that they are free to donate funds to any organisations they choose to over and above their existing voluntary RET contributions, and any future statutory levy payments.
We have noted the comments around timing and communication and have factored this into our thinking with regard to the date the LCCP change will come into effect and will continue to communicate with gambling businesses and other key stakeholders on the timing of the removal of the code provision once legislative processes are complete.
Final wording
The date this amended requirement will come into force is intended to align with the introduction of the statutory levy which is scheduled by DCMS for April 2025. The Commission will notify licensees of the final in-force date once legislative processes are complete.
Social Responsibility Code 3.1.1 – Combating problem gambling
Applies to: All licences
- Licensees must have and put into effect policies and procedures intended to promote socially responsible gambling including the specific policies and procedures required by the provisions of section 3 of this code.
Last updated: 4 February 2025
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