Guidance
Guidance to licensing authorities
The Gambling Commission's guidance for licensing authorities.
Contents
- Changes to the Guidance for Licensing Authorities
- Part 1: General guidance on the role and responsibilities of licensing authorities in gambling regulation
- - Introduction
- - Partnership working between the Commission and licensing authorities – shared regulation
- - Co-ordination and contact
- - Primary legislation
- - Statutory aim to permit gambling
- - The licensing objectives
- - Codes of practice
- - Licensing authority discretion (s.153 of the Act)
- - Local risk assessments
- - Licensing authority policy statement
- - Limits on licensing authority discretion
- - Other powers
- Part 2: The licensing framework
- - Introduction
- - Operating licences
- - How operating licences are granted
- - Operating licence conditions and codes
- - Personal licences
- - Premises licences
- Part 3: The Gambling Commission
- - Introduction
- - Main functions of the Commission
- - Relationship between the Commission and licensing authorities
- Part 4: Licensing authorities
- Part 5: Principles to be applied by licensing authorities
- - Licensing objectives
- - Section 153 principles
- - Codes of practice
- - Good practice in regulation
- - Human Rights Act 1998
- - Other considerations
- Part 6: Licensing authority policy statement
- - Introduction
- - Fundamental principles
- - Form and content
- - Other matters to be considered
- - Local risk assessments
- - Local area profile
- - Declaration by licensing authority
- - Consultation
- - Reviewing and updating the policy statement
- - Advertisement and publication
- - Additional information to be made available
- Part 7: Premises licences
- - Introduction
- - Premises
- - Access to premises
- - Multiple activity premises – layout and access
- - Applications
- - Application for premises variation (s.187): ‘material change’
- - Consideration of planning permission and building regulations
- Part 8: Responsible authorities and interested parties definitions
- Part 9: Premises licence conditions
- - Introduction
- - Conditions and authorisations by virtue of the Act
- - Conditions attached through regulations made by the Secretary of State or Scottish Ministers – all premises
- - Conditions that may not be attached to premises licences by licensing authorities
- Part 10: Review of premises licence by licensing authority
- - Introduction
- - Initiation of review by licensing authority
- - Application for a review
- - Carrying out a review
- Part 11: Provisional statements
- Part 12: Rights of appeal and judicial review
- Part 13: Information exchange
- - Underlying principles
- - Information licensing authorities provide to the Commission
- - Other licensing authority information requirements
- Part 14: Temporary use notices
- Part 15: Occasional use notices
- Part 16: Gaming machines
- - Introduction
- - Categories of gaming machine
- - Age restrictions
- - Maximum number of machines by premises type
- - Multiple activity premises
- - The meaning of ‘available for use’
- - Machines other than gaming machines in gambling premises
- Part 17: Casinos
- - Casino premises
- - Casino games
- - Protection of children and young persons
- - The process for issuing casino premises licences
- - Resolutions not to issue casino licences
- - Converted casinos (with preserved rights under Schedule 18 of the Act)
- - Casino premises licence conditions
- - Mandatory conditions – small casino premises licences
- - Mandatory conditions – converted casino premises licences
- - Default conditions attaching to all casino premises licences
- - Self-exclusion
- Part 18: Bingo
- - Introduction
- - Protection of children and young persons
- - Gaming machines
- - Self-exclusion
- - Bingo in clubs and alcohol-licensed premises
- - Bingo premises licence conditions
- Part 19: Betting premises
- - Introduction
- - Protection of children and young persons
- - Gaming machines
- - Self-exclusion
- - Self-service betting terminals (SSBTs)
- - Betting premises licence conditions
- - Industry codes
- Part 20: Tracks
- - Definition of a track
- - Track premises licences – differences from other premises licences
- - Betting on tracks
- - Licences and other permissions for the provision of betting facilities
- - Betting on event and non-event days
- - Social responsibility considerations for tracks
- - Gaming machines
- - Self-service betting terminals (SSBTs)
- - Applications
- - Licence conditions and requirements
- Part 21: Adult gaming centres
- - Introduction
- - Protection of children and young persons
- - Self-exclusion
- - Gaming machines
- - AGC premises licence conditions
- Part 22: Licensed family entertainment centres
- - Introduction
- - Protection of children and young persons
- - Meaning of premises
- - Licensed FEC premises licence conditions
- Part 23: Introduction to permits
- Part 24: Unlicensed family entertainment centres
- - Introduction
- - Applying for a permit
- - Granting or refusing a permit
- - Lapse, surrender and forfeiture
- - Renewal
- - Maintenance
- Part 25: Clubs
- - Defining clubs
- - Bingo in clubs
- - Betting in clubs
- - Exempt gaming
- - Protection of children and young persons
- - Permits
- - Appeals
- Part 26: Premises licensed to sell alcohol
- - Introduction
- - Automatic entitlement to two machines
- - Licensed premises gaming machine permits
- - Exempt gaming
- - Bingo
- - Betting
- - Commission codes of practice
- - Scotland
- - Protection of children and young persons
- - Prohibited gaming
- Part 27: Prize gaming and prize gaming permits
- Part 28: Non-commercial and private gaming, betting and lotteries
- - Introduction
- - Non-commercial gaming
- - Private gaming
- - Private betting
- - Incidental lotteries
- - Non-commercial ‘casino night’
- - Non-commercial race night
- Part 29: Poker
- - Introduction
- - Poker in casinos
- - Poker as exempt gaming in clubs and alcohol licensed premises
- - Poker as non-commercial gaming
- - Poker as private gaming
- - Advertising
- Part 30: Travelling fairs
- Part 31: Crown immunity and excluded premises
- Part 32: Territorial application of the Gambling Act 2005
- Part 33: Door supervision
- Part 34: Small society lotteries
- - Small society lotteries
- - The status of lotteries under the Act
- - Licensing authority guidance
- - Social responsibility
- - External lottery managers’ licence status
- - Lottery tickets
- - Prizes
- - Specific offences in relation to lotteries
- - Application and registration process for small society lotteries
- - Administration and returns
- Part 35: Chain gift schemes
- Part 36: Compliance and enforcement matters
- - Fees
- - Enforcement officers and authorised persons
- - Powers of entry – England and Wales
- - Powers of entry in Scotland
- - Illegal gambling
- - Test purchasing and age verification
- - Primary Authority
- - Prosecutions
- - Other powers
- - Case law, templates and case studies
- Appendix A: Summary of machine provisions by premises
- Appendix B: Summary of gaming machine categories and entitlements
- Appendix C: Summary of gaming entitlements for clubs and alcohol-licensed premises
- Appendix D: Summary of offences under the Gambling Act 2005
- Appendix E: Summary of statutory application forms and notices
- Appendix F: Inspection powers
- Appendix G: Licensing authority delegations
- Appendix H: Poker games and prizes
- Appendix I: Glossary of terms
Case studies
During a compliance assessment, Anti-money laundering (AML) policies and procedures and safer gambling control deficiencies were identified. The licensee was considered suitable for special measures; they accepted the failings, demonstrated immediate action to mitigate any potential risks and the key persons provided the Commission with a high level of confidence that improvements would be made.
As a result of engagement between the Commission and the licensee, the following safeguards were immediately implemented due to the specific circumstances of the failings:
- operator must secure Know Your Customer (KYC) documentation and a source of wealth questionnaire at £250 in lifetime deposits and cannot accept deposits further until this is completed
- deposit flags lowered to £250 deposited in 24 hours
The licensee provided weekly updates to show progress against their action plan and a follow up compliance assessment was completed three months later to satisfy the Commission the licensee was now suitably compliant, and the following further safeguards had been effectively implemented:
- the maximum deposit that can be accepted in one transaction is £100
- deposits are disabled when a customer hits £250 in deposits and they must provide their salary and occupation before being allowed to gamble further
- a net loss limit is calculated based on salary information provided by the customer and this limit cannot exceed £400 a month
- once satisfactory source of funds information is provided, a monthly net loss limit at a maximum of 15% of the customer’s net salary is set
- safer gambling interactions are automatically triggered by several factors which are identified through algorithmic software
- where a safer gambling interaction is triggered, deposits are disabled until this is completed.
The licensee worked at pace to resolve significant failings to ensure adequate safer gambling controls and AML procedures were implemented, positioning customer wellbeing at the heart of the business, rather than a sole focus on commercial gain. The safeguards implemented reflected the customer and business risk the licensee had identified and felt appropriate for its specific customer base. The licensee engaged positively with the Commission to raise its standards and demonstrated meaningful co-operation to protect the Licensing Objectives based on the specific risk profile of its customer base.
In a further example of special measures success another operator:
- introduced a three-stage process to identify the risk of unaffordable gambling, commencing from point of registration
- implemented deposit blocks based on customer risk and loss levels (both time based and lifetime)
- added additional Know Your Customer (KYC) checks throughout the customer journey
- reviewed its customer risk markers for both AML and safer gambling indicators
- improved the quality of customer review through consideration of transactional history and risk indicators
- introduced live customer monitoring and expanded staff resource in this area
- implemented hard stops for highest risk accounts
- invested in additional specialist staff training
- improved record keeping relating to customer and business decisions.
Last updated: 8 December 2021
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