Changes to multi-operator self-exclusion, notification of deaths by suicide and payment services: Consultation Response
Proposal 3: Payment services – updating references to regulations
Amendment to Licence Condition 5.1.2 - Payment methods and services
We consulted on a small proposal to amend the text of Licence Condition 5.1.2 - Payment methods and services, to ensure that the Licence Condition reflects the current Payment Services Regulations 2017 (opens in new tab).
We also proposed a further amendment to ensure that the condition remains current and reflects any further legislative amendments to the Payment Services Regulations that might come into force in the future. This is consistent with approaches we have taken in other areas of Licence Conditions and Codes of Practice (LCCP) (such as Licence Conditions 12.1.2 - Anti-money laundering - Measures for operators based in foreign jurisdictions and Licence Condition 15.2.3 - Other reportable events - money laundering, terrorist financing, etc).
We sought views through the consultation on the potential advantages and disadvantages of the proposal, and, in particular, whether updating the reference to Payment Services Regulations 2009 to the 2017 Regulations would have a negative impact on any gambling business due to the type of payment services that they use and/or any material differences between the 2009 and 2017 regulations. We concluded that the proposed changes would have no significant impact on gambling businesses and that the Payment Services Regulations 2017 (SI 2017 No 752), as amended, would appropriately maintain the intention of the original Licence Condition.
- To what extent do you agree with the proposed change to update Licence Condition 5.1.2 to make reference to the Payment Services Regulations 2017?
- To what extent do you agree with the proposal that Licence Condition 5.1.2 takes account of future regulatory changes by including wording which refers to 'the equivalent requirements of any UK Statutory Instrument by which the Payment Services Regulations are amended or superseded'?
- Would updating the references to the Payment Services Regulations 2017 cause any difficulties for gambling businesses to comply with Licence Condition 5.1.2?
More than half of the respondents to the first question either agreed or strongly agreed with the proposed change to update Licence Condition 5.1.2. A large proportion of respondents were neutral and only a very small number of respondents disagreed or strongly disagreed with the reasons given not directly related to the proposal itself.
Just over half of respondents to the second question either agreed or strongly agreed with the proposed change to update Licence Condition 5.1.2 to include wording which future proofs the Licence Condition in the event of any further legislative amendments. Most respondents did not comment further, although a small number indicated that it felt like the right thing to do. There were a small minority of respondents who raised concerns that we should be cautious about implementing the proposed wording as we cannot be certain about what might happen in the future. One respondent also highlighted the need for us to consider other emerging payment methods which may be accessible, but not necessarily licensed in the United Kingdom (UK), for example overseas debit cards or wallets.
The majority of respondents to the final question stated that they had no major concerns in relation to identifying difficulties in implementing the proposed changes, while a very small number of respondents raised issues that were not directly connected to the consultation question.
We have considered all of the responses to the consultation questions and intend to proceed with the changes to Licence Condition 5.1.2 payment methods and services as proposed. The updated requirement will come into force on 31 January 2024.
The Licence Condition was originally introduced in 2014 to ensure an appropriate standard of customer protection and controls against money laundering. The changes now mean gambling businesses must use payment service providers that meet the definition in Regulation 2 of the Payment Services Regulations 2017.
The change simply updates the existing Licence Condition to reflect the current legislative provisions and also ensures that the condition is suitably future proofed against any further simple legislative changes.
Responses did not identify any issues or difficulties for gambling businesses to comply with the proposed amendment to the condition and we are satisfied that the responses to the consultation have not identified any substantive arguments against making this change.
Final wording of amended Licence Condition 5.1.2 - Payment methods and services
5.1.2 - Payment methods and services
All remote casino, bingo and betting operating licences, except ancillary, host and remote betting intermediary (trading room only) licences.
- Licensees must only accept payment from customers using their gambling facilities in Great Britain by a method which involves the provision of payment services as defined in Schedule 1 Part 1 of the Payment Services Regulations 2017 (SI 2017 No 752) if the provider of those services is a ‘payment service provider’ within the definition of that term in regulation 2 of those Regulations (or the equivalent requirements of any UK Statutory Instrument by which those regulations are amended or superseded).
Proposal 2: Reporting of deaths by suicide to the Gambling Commission Next section
Proposal 4: Further consultation question
Last updated: 17 October 2023
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