Regulatory returns guidance for gambling software
This is to help you prepare some of the key data that you are required to report within the regulatory return for a gambling software operating licence.
If you misrepresent or fail to reveal information that you are asked to provide, unless you have a reasonable excuse, you will have committed an offence under section 342 of the Gambling Act 2005. Anyone who provides information of a false or misleading nature risks prosecution.
After receipt of your completed regulatory return, we may still need to contact you for any further information we consider necessary in order to process your regulatory return.
Any information or material that is sent to us and which we record may be subject to the Freedom of Information Act 2000 (FOIA). Our policy on release of information is available on request or on our website.
We will handle confidential information accordingly and will only disclose that information to people outside the Commission where it is necessary to do so in order to carry out our functions or where we are required by law to disclose the information. As a public authority we must comply with the requirements of FOIA and must consider requests for information made under the Act on a case-by-case basis.
All information provided will be processed in accordance with the Data Protection Act 2018. However, it may be disclosed to government departments or agencies, local authorities and other bodies when it is necessary to do so in order to carry out our functions and where we are legally required to do so.
As part of the Licence conditions and codes of practice (LCCP) operators are required to provide information on the range of gambling activities provided by the licensee and the number of staff employed in connection with them. This means all staff employed by the licensed entity, and therefore employed in the gambling industry.
We recognise that there are operators with only part of their business in the gambling field. Where this is the case we understand that the staff numbers relating to the licensed aspect of the business may need to be estimated for some staff in centralised or support functions.
Employee numbers should be reported at a date as near to the end of the period as possible, for each category listed, on both annual and quarterly regulatory returns. It may be most convenient to calculate this at the date of the last pay run in the reporting period.
Record the total number of employees. This is the number of individuals employed at a given time, irrespective of the hours they work. Count each person as one regardless of whether they work full time or part time.
An employee is anyone that your organisation directly pays from its payroll(s), in return for carrying out a full time or part time job or being on a training scheme. This includes workers who are employed in relation to the licensed activity who are:
- paid directly from this business’s payroll
- temporarily absent but still being paid, for example on maternity leave
- furloughed on the Coronavirus Job Retention Scheme.
Do not include:
- employees not employed in relation to the licensed activity
- former employees only receiving a pension
- self-employed workers
- working owners who are not paid via PAYE
- staff who are not directly employed (for example, agency staff)
If employees work across a group, you should record them on the regulatory return for the licensed activity that uses most of their time.
Details of any contributions provided to organisations promoting socially responsible gambling research, education and treatment since submitting the previous return.
Select the appropriate option (yes/no).
Also select yes if you have made a contribution in an earlier regulatory return period that also covers this regulatory return period – eg if you are completing a quarterly return but have previously provided details of an annual contribution.
Use the 'Details of contribution' section to record the fact you have provided details of your contribution on an earlier regulatory return. Do not record the value of your contribution or the beneficiary again.
If you are a trade association/body member and your contribution was made through them please select ‘Contribution via Trade Body’. You should also record the name of the trade association/body.
Record the value of your contribution. If you have apportioned your contribution across a number of sectors you should record the amount relevant to the licensed activity covered by the regulatory return. That is, if your business completes more than one regulatory return, your RET contribution should be divided between the different sectors and recorded in the relevant returns. Do not record the company’s total contribution in full on each regulatory return.
Provide details of the time period to which this contribution relates. For example, you might make a three-year grant in one year, and therefore make no contribution for the following two years. This should be recorded on the regulatory return that covers the period in which the contribution was made. Subsequent regulatory returns should indicate that a contribution was made and that details have previously been submitted. You should use this section of the regulatory return to record those details.
Enter details relating to the contribution.
Income from gambling software supplied (£)
Provide details of the income received from gambling software supplied in reliance on the operating licence. This should be broken down on the basis of whether the gambling software is supplied by non-remote or remote means.
Confirm details of your gross gambling yield (GGY) for the period relating to the regulatory return.
Gross gambling yield is the amount retained by operators (in relation to the licensed activity) after the payment of winnings but before the deduction of the costs of the operation. For example, the total amount of stakes received, minus the amount paid out in winnings, equals GGY.
The certification statement needs to be signed by one key PML (individuals holding specified management offices). For small-scale operators, the person with control of the business should sign the certification. We would expect the signatories to make reasonable enquiries of the Board and other key staff who play a significant role in ensuring compliance with the operator’s licence conditions and codes of practice.
The extent of reasonable enquiries may differ between sectors and size of business but the
Commission suggests that these should include:
- referring to the current trading position and any financial projections that may exist and assessing whether there is a significant likelihood of the business experiencing financial difficulties
- reviewing the adequacy of resources and arrangements (policies, systems and controls) in place to ensure compliance with licence conditions and codes of practice
- enquiring of the Board and other PMLs whether they are aware of any factors or pending changes that may threaten the business’s ability to meet the licence conditions and codes of practice.
In signing the statement, we envisage that PMLs of larger entities will be able to draw on a number of sources of assurance, including:
- Existing trading position
- Financial projections
- Results of compliance/internal audit/assurance work
- Complaints information
- External auditor’s report
- Customer feedback surveys
- Independent reviews/consultants’ reports.
For smaller entities, owners or managers will be more aware of all aspects of the business and will be able to use this knowledge to give the necessary assurances.
We are not seeking to underwrite the financial viability of operators and understand that unforeseen events (financial or otherwise) may arise which cause financial or other difficulties. As indicated above, we expect operators to make reasonable enquiries and to use the information they have to make sound judgements.
If you have any questions or queries relating to the completion of the regulatory return, then please contact us.