Consultation response
Summer 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
- Topic 1 - Improving customer choice on direct marketing: Consultation Response
- Topic 2 - Strengthening age verification in premises: Consultation Response
- Topic 3 - Game design: Consultation Response
- Topic 4 - Financial vulnerability checks: Consultation Response and Financial risk assessments pilot: Consultation Response
- Topic 5 - Personal Management Licence: Consultation Response
- Topic 6 - Changes to Regulatory Panels: Consultation Response
- Evaluating the impact of relevant changes
- Annex
Proposal 1: Clarification to the requirement for a CEO, Managing Director or equivalent to hold a Personal Management Licence
Proposals
We consulted on the proposal that the overall management and direction of the licensee’s business or affairs is likely to include the Chief Executive Officer, Managing Director or equivalent under Licence Conditions and Codes of Practice (LCCP) condition 1.2.1 (2)(a).
Consultation question
To what extent do you agree with the proposed clarification to the requirement for a CEO, Managing Director or equivalent to hold a Personal Management Licence (PML)?
Respondents’ views
The majority of respondents agreed with the proposal. These respondents remarked that those who have overall responsibility, make strategic decisions, and have full oversight of the business, should be required to hold a PML. Some respondents acknowledged that the Gambling Commission currently has the powers to intervene and act under S80 (1) (Requirement for personal licence) of the Gambling Act 2005, although they still welcomed the clarification.
There were a small number of respondents who disagreed with the proposals, perceiving the current personal licensing regime to be adequate and well-functioning. Those respondents remarked that the existing regulation is already wide in scope and establishes a resilient licensing regime with extensive accountability of the personal licence holders under the Gambling Act 2005. Specifically, respondents referred to the definition of ‘management office’ under Section 80(5) stating it already allows for sufficient flexibility and provides an opportunity for the Commission to designate PMLs within any given licensee as it considers appropriate.
Some respondents operating in the charity and society lottery sectors mistakenly understood the provision would apply to their sectors. The intention is for this provision to apply to holders of an External Lottery Manager licence and not to Society Lotteries, as they are covered separately by licence condition 1.2.3 of the LCCP.
Our position
We have decided to implement the condition as consulted. It provides greater clarity on which roles in an organisational structure are likely to be captured when considering who is responsible for the overall management and direction of the licensee’s business or affairs.
However, certainty for the regulated sector is important (as highlighted by the Regulators’ Code), and that the Commission’s expectations should be clear at the outset and are not subject to misinterpretation.
Final wording
Applies to: All casino, bingo, general and pool betting, betting intermediary, gaming machine general, gaming machine technical, gambling software and lottery managers licences, except ancillary remote licences.
1.2.1 (2). The specified management offices are those offices (whether or not held by a director in the case of a licensee which is a company, a partner in the case of a licensee which is a partnership or an officer of the association in the case of a licensee which is an unincorporated association) the occupier of which is by virtue of the terms of their appointment responsible for:
a. the overall management and direction of the licensee’s business or affairs (this is likely to be the Chief Executive Officer, Managing Director or equivalent)
Last updated: 13 June 2024
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