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
What are the issues - Unlicensed gambling
The risk of unlicensed gambling has increased due to the change of consumer behaviour shifting from land-based play to online. It is our statutory duty to keep consumers in Great Britain safe, therefore, we monitor the market and disrupt those that are unlicensed.
When consumers access illegal gambling sites, they expose themselves to risks and are not afforded the protections required in the regulated sector. We are particularly focused on identifying and disrupting those illegal websites which are targeting young and vulnerable gamblers to deliberately circumvent our customer protection standards.
During this period, the emergence of unlicensed websites targeting consumers who have excluded using the Gamstop system has been a major concern.
We assess intelligence gathered from multiple sources and work closely with partner agencies to prevent access to illegal websites by consumers in Great Britain. If an intelligence- led initial approach is unsuccessful, cases are referred to the enforcement team for investigation and further disruption options.
This approach ensures that our focus is on those websites presenting the greatest consumer threat. Licensees have highlighted the risks posed by illegal operators who undermine consumer protection efforts and provide an unfair source of competition. Some licensees argue that increased regulation in the licensed market risks diverting consumers to the black market.
Our enforcement team has tackled 59 instances of remote unlicensed operators this year and engaged with 15 international regulators. We continue to successfully disrupt illegal online gambling where payment providers or advertising platforms can be identified.
However, the risk remains that some unlicensed website operators can adapt to use other payment providers once they are aware payments are being blocked. There has been and continues to be fast and extensive innovation in the payment sector, which requires additional resource and systems to detect and counteract.
This risk is common across regulated markets, a total of 16 EU member states have measures in place requiring payment processors to block transactions with unlicensed gambling operators. However, most regulators have reported mixed success in combatting gambling payment processing, with challenges when operators use accounts located outside the countries in which their gamblers live.
An effective approach to payment blocking is an important regulatory tool but needs to be complemented by other means of preventing illegal gambling websites. We will continue to review our resources and powers to ensure we can continue to tackle unlicensed gambling websites targeting British consumers.
In the last 12 months we have conducted compliance and enforcement work focused on the risk that some unlicensed operators seek to use ‘white label’ agreements to circumvent licensing requirements. Our work has revealed some licensees were failing to exert appropriate control over the activities that their licence authorised.
This included failure to properly scrutinise the ownership and business models of partners, address money laundering and politically exposed persons (PEP) risks and general poor oversight. We have produced revised guidance to remind operators of their obligations.
An increasingly prominent risk of exposure to unlicensed gambling for the public has been the growth in commercial social media lotteries. From May 2019 to May 2020, 245 illegal lotteries were referred by us to Facebook for closure.
Social media lotteries are a growing issue due to their increasing presence on Facebook and other social media platforms. Historically such lotteries were low-level events, and intelligence identified many were being run from home by a small group of people and for low value prizes. However recent intelligence suggests larger, more organised operations may be in effect, generating significant profit.
GC action
We will continue to tackle illegal gambling effectively by increasing
- understanding of the scale of the problem
- capacity such as accredited online investigators
- expanding the availability of necessary software tools
- exploring greater use of different disruption techniques.
Last updated: 2 June 2021
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