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Consultation response

Financial key event reporting: Reporting changes in ownership and interests: Consultation response

The consultation response on reporting changes in ownership and interests as a key event.

Contents


Proposal 5: Amendment to the Licensing, Compliance and Enforcement Policy Statement under the Gambling Act 2005 to raise the threshold of shareholders to be listed from 3 percent to 5 percent

Proposal

We proposed an amendment to the Licensing, Compliance and Enforcement Policy Statement under the Gambling Act 2005 to raise the threshold of shareholders to be listed from 3 percent to 5 percent under the section about Licensing (under the heading, ‘Identity and Ownership’).

Consultation question

To what extent do you agree with the proposed change to raise the threshold of shareholders to be listed from 3 percent to 5 percent or more within the Licensing, Compliance and Enforcement Policy Statement under the Gambling Act 2005, under the section about Licensing (under the heading, ‘Identity and Ownership’)?

Respondents’ views

The majority of respondents agreed with the proposal. Comments included:

  • "This would be much more reflective of risk and reduce the burden on licensees"
  • "This appears to be a proportionate change, given the relative insignificance of shareholdings below 5 percent from a licensing perspective."

A counter argument put forward was that a lower threshold of 3 percent ensures that the Gambling Commission has a comprehensive understanding of the financial activities within the gambling industry, promoting transparency and accountability and that this level of oversight is crucial for ensuring the integrity and legitimacy of the industry.

Our position

In line with our decision on Proposal 1 we have decided to go ahead with the proposal to change the reporting threshold from 3 percent to 5 percent.

Final wording

This amendment will come into force on 19 March 2026.

Applies to: All operating licences.

Paragraph 3.25 of the Licensing, Compliance and Enforcement Policy Statement under Gambling Act 2005

The Commission will also want to ensure that it can establish who benefits from the gambling provided and therefore require that any shareholders with a 5% shareholding are listed, and that those with over 10% holding complete an Annex A form to enable further checks to be carried out on them.  This requirement is without prejudice to the Commission’s decision-making authority. If the beneficiary of any business is a Trust then the Commission will want to know who the beneficiaries of that Trust are. Similarly, where a person or entity holds shares as a nominee, the Commission will want to know who the true owners are.

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Proposal 4: Introduction of a new requirement for licensees to report to the Commission the details of individuals who acquire the equivalent of £50,000 or more worth of new shares in a rolling 12-month period
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Equalities considerations
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