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  3. Summer 2023 consultation – Proposed changes to LCCP and RTS: Consultation Response

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.

Published
1 May 2024

Last updated
13 June 2024 - Changes

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Contents

Proposal 1: Removal of age verification test exemption for smaller licensees

Proposals

We proposed to remove the current exemption from carrying out age verification test purchasing for category A and B licensees of the following types: betting, bingo, Family Entertainment Centre (FEC) and Adult Gaming Centre (AGC).

Consultation question

To what extent do you agree with the proposed change to remove the exemption from age verification test purchasing for category A and B betting, bingo, AGC and FEC licensees?

Respondents' views

There was support for this proposal with the around half of the total number of respondents agreeing. The rest were split relatively evenly between disagreeing or having no strong view.

This question received a low number of responses from licensees, likely a reflection of the proportion of licensees that would be affected by the proposal. The majority supported it, generally noting the advantage of a consistent approach across all licensees. One disagreed, with a suggestion that technology could do away with the need for test purchasing.

The proposal was supported by under half of members of the public who responded. A third disagreed and just over a quarter had no strong view. The views of those supporting the proposal included that it was important to protect children and young people from gambling, that there should be consistent rules across all forms of gambling and that the testing was a sensible precaution. The reasons cited by those disagreeing included the importance of personal responsibility by those gambling, that underage gambling (in the relevant sectors) was not a problem or low risk, and that introducing this requirement could put pressure on smaller and less profitable premises.

The proposal was supported by all respondents from professional bodies, two of the trade associations and regulator and/or licensing authorities. They typically noted the importance of a ‘level playing field’ across all licensees and the importance of managing the risks of underage gambling. The other two trade associations did not have a strong view either way. One noted that the proposal would provide a level playing field across the sector and provide us with a complete picture of compliance levels in age verification, but the requirement would introduce a significant additional cost for smaller businesses.

The consultation asked for any comments on implementation issues, timelines and practicalities, and for an estimate of direct costs associated with implementing these proposals. We received few responses relevant to these points on this proposal. One noted that costs for the licensees affected could be substantial, as they were less likely to be able to benefit from the economies of scale and lower cost per test that larger licensees may benefit from. Gambling licensees, in particular, asked that sufficient time be given to make any changes necessary to implement the requirement, including engaging third-party companies to carry out testing.

Our position

We have carefully considered all the responses to the consultation and have decided to proceed with our proposal to remove the current exemption from carrying out age verification test purchasing for category A and B licensees of the following types: betting, bingo, family entertainment centre and adult gaming centre. As the consultation noted, the risk of harm from underage gambling does not differ according to the size of the licensee running the premises. Our data shows we have an incomplete picture of risk, with well under half of category A and B licensees (voluntarily) submitting test purchasing results. The test purchasing results that we do have suggest licensees need to make progress in this area: in 45 percent of tests in category A and B FECs (a sector with a large number of smaller operators), the tester was not challenged at all.

We acknowledge that introducing this requirement will increase costs for smaller licensees. However, many of these licensees can, and do, benefit from testing provided via their trade association. Our guidance also suggests that licensees only need to perform a modest number of tests to fulfil the requirement which will limit the cost to implement this change.

We consider that, following consultation, the proposals are proportionate to address the risk of underage gambling and to the cost of implementation. As the majority of licensee premises are already tested, we view this as a balanced way of achieving compliance in this area.

We note the request from licensees that they have sufficient time to implement the requirement and engage testing companies. Our guidance on recording and submitting age verification test purchasing results data requires results to be submitted annually, and within 42 days of the end of each financial year. This means that all relevant premises will have to be tested by 31 March 2025. We consider this is sufficient time for licensees who are arranging testing for the first time.

Final wording of amended Social Responsibility Codes and Ordinary Codes

These changes will come into effect on 30 August 2024.

Note: Where a dash (“-“) is used in the LCCP to denote a range of paragraphs, we intend to change these to “to”. For example, “paragraphs 4 to 7” rather than “paragraphs 4-7”. The former is more accessible and does not change the meaning.

3.2.3 AGC SR code

  1. All licensees must conduct test purchasing or take part in collective test purchasing programmes, as a means of providing reasonable assurance that they have effective policies and procedures to prevent underage gambling, and must provide their test purchase results to the Gambling Commission, in such a form or manner as the Commission may from time to time specify.

3.2.5 Bingo and FEC SR code

  1. All licensees must conduct test purchasing or take part in collective test purchasing programmes, as a means of providing reasonable assurance that they have effective policies and procedures to prevent underage gambling, and must provide their test purchase results to the Commission, in such a form or manner as the Commission may from time to time specify.

3.2.7 Betting SR code

Applies to: Paragraphs 1, 2 and 4 to 7: all non-remote betting and remote betting intermediary (trading rooms only) licences Paragraph 3: all non-remote betting licences (except general betting (limited) licences) and remote betting intermediary (trading rooms only) licences Paragraph 8: non-remote pool betting licences Paragraph 9: all non-remote general betting (standard) licences.

3.2.4 (5) AGC ordinary code

Subsection removed.

3.2.6 (6) Bingo and FEC ordinary code

Subsection removed.

3.2.8 Betting ordinary code

Applies to: Paragraphs 1 to 5 inclusive: all non-remote betting and remote betting intermediary (trading rooms only) licences Paragraph 6: all non-remote betting (limited) licences and remote betting intermediary (trading rooms only) licences.

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