Report
Annual report and accounts 2023 to 2024
The Gambling Commission's 2023 to 2024 Annual report and accounts. For the period 1 April 2023 to 31 March 2024.
Governance statement for the year ended 31 March 2024
This section sets out the internal control and risk management systems in place within the Gambling Commission, and the structures in place to review the efficacy of those systems.
Governance framework
The Commission has complied with government guidance for corporate governance in arm’s length bodies. These requirements are primarily codified in the framework agreement with the Department of Culture, Media and Sports (DCMS), and the Commission’s governance framework.
The Commission meets the requirements of government guidance for corporate governance by:
- setting out and publishing a governance framework
- ensuring decisions are supported by effective papers and recorded in minutes
- provision of core reporting to Board, Executive Team and other committees on a regular rhythm, including financial and operational performance and risk
- annual effectiveness reviews of the Board and committees
- maintaining skills analysis and succession plans to inform Commissioner recruitment to support the public appointments process to ensure a strong mix of knowledge and experience at Board level
- managing an up-to-date declarations of interest register and ensuring interests are managed appropriately.
The Commission’s governance framework, including a scheme of delegations (general, financial and regulatory), code of conduct, anti-fraud and corruption, complaint and public interest disclosure policies are published in the Corporate Governance Framework. Compliance with the requirements of the framework, and its effectiveness, is reviewed annually in a Board Effectiveness Review (BER).
In 2023 to 2024 Board effectiveness was reviewed internally, testing the Commission against the Cabinet Office guidance for Board effectiveness reviews: principles and resources for arm’s-length bodies and sponsoring departments. The review tested Board effectiveness against indicators, finding 3 areas effective and one area fully effective.
Decision-making and scrutiny
The Board of Commissioners, led by the Chair, Marcus Boyle, oversees the business of the Commission. The day-to-day activity of the Commission is managed by the leadership team, led by me as Chief Executive and Accounting Officer.
Commissioners are responsible for the strategic direction of the organisation and oversee delivery of the Commission’s Strategy and business plan.
Meetings of the Board of Commissioners are governed by the Rules for the conduct of business and provide the opportunity for robust and constructive challenge and debate amongst board members and senior management.
Discussions and decisions at Board (and Committee or Executive Team) are almost always supported by written papers. All Board, Committee and Executive Team meetings are minuted, and actions and decisions are logged and tracked.
During the year, a significant amount of time in formal board meetings was focused on the Gambling Act Review programme of work, the award and implementation of the Fourth National Lottery Licence and enhancing the Commission’s performance against strategic objectives.
The Board has also developed the strategy for 2024 to 2027 and the business plan for 2024 to 2025. The Board continues to make use of several sub-committees of Commissioners and, in some cases, Commission employees, to undertake more detailed scrutiny or to make delegated decisions. The membership and remit of these committees are outlined as follows. Commissioners also retain direct responsibility for some regulatory decisions through the regulatory panel process.
The Commission has an induction and development process in place for Commissioners to ensure they are aware of and able to exercise their responsibilities. New Commissioners receive an extensive programme of training to ensure a solid foundation of knowledge about consumer issues in gambling and the operating environment and diversity of the sector. The induction programme has also ensured that training has been provided on MPM. Existing Commissioners receive regular written briefings, training and other developmental activity.
Committees and sub committees
Board
Chair: Marcus Boyle.
Senior Independent Director: Catharine Seddon.
Members of the Board:
- John Baillie
- Lloydette Bai-Marrow (from 11 September 2023)
- Carol Brady (until 31 July 2023)
- Stephen Cohen
- Charles Counsell OBE (from 11 September 2023)
- Helen Dodds (from 11 September 2023)
- Sheree Howard (from 11 September 2023)
- Claudia Mortimore (from 11 September 2023)
- Trevor Pearce (until 31 December 2023)
- Helen Phillips (from 11 September 2023)
- David Rossington CB (interim Commissioner until 10 September, full appointment from 11 September 2023)
- Andrew Rhodes (from 4 July 2023).
Audit and Risk Committee
Chair: John Baillie (until March 2024). Chair: Sheree Howard (from March 2024).
Members:
- Trevor Pearce (until November 2023)
- David Rossington
- Sheree Howard (from November 2023)
- Helen Dodds (from November 2023).
Independent member: Chris Andrew.
Remit: assurance of financial and risk management processes and structures, including engagement with internal and external audit.
Remuneration and Nominations Committee
Chair: Trevor Pearce (until December 2023). Chair: Lloydette Bai-Marrow (from January 2024).
Members:
- Lloydette Bai-Marrow (from November 2023)
- Carol Brady (until July 2023)
- Helen Phillips (from November 2023)
- Catharine Seddon.
Remit: oversight of executive level recruitment, remuneration, performance management processes, board effectiveness and Commissioner recruitment (via DCMS).
National Lottery Committee
Chair: Trevor Pearce (until December 2023). Chair: Helen Dodds (from January 2024).
Members:
- Helen Dodds (from November 2023)
- Sarah Gardner
- Claudia Mortimore (from November 2023).
Independent member: Victor Olowe (from September 2023).
Remit: oversight of the Commission’s management of the licensee of the 3rd licence.
National Lottery Competition Committee
Chair: Stephen Cohen.
Members:
- John Baillie
- Carol Brady (until July 2023)
- David Rossington
- Catharine Seddon
- John Tanner
- Charles Counsell (from October 2023).
Independent member: vacant.
Remit: programme board for the 4th National Lottery Licence competition through to implementation.
Expert Groups
The Expert groups are as follows:
- Advisory Board for Safer Gambling
- Digital Advisory Panel
- Lived Experience Advisory Panel
- Industry Forum (Inaugural meeting in March 2024)
Regulatory Panel
Not a standing committee.
Remit: convened to make regulatory decisions in respect of operator and personal licenses, and enforcement action.
The Regulatory Panel determines some licence applications and deals with significant regulatory decisions which may include the revocation of licences. The Regulatory Panel did not sit during 2023 to 2024. One case was withdrawn before the hearing in 2023 to 2024. This case required three Commissioners to attend meetings with their legal adviser in addition to substantial preparation and review time.
Audit and Risk Committee
The Audit and Risk Committee (ARC) supports the Board and the Accounting Officer in their responsibilities by monitoring the integrity of the Commission’s annual statutory financial statements, reviewing the Commission’s governance, internal control and risk management systems, and by reviewing the internal and external audit services.
In 2023 to 2024 the ARC focused particularly on the Commission’s approach to Risk Management and seeking assurance on the Executive Team’s management of the key strategic risks facing the Commission, including, but not limited to, risks associated with the Gambling Act Review programme and the Fourth National Lottery Licence competition and implementation.
Remuneration and Nomination Committee
The Remuneration and Nomination Committee supports the Board and Accounting Officer in their responsibilities for remuneration and performance management, senior appointments and succession planning.
In 2023 to 2024, the Remuneration and Nomination Committee were particularly involved in the skills analysis informing Commissioner recruitment.
National Lottery Committee
The National Lottery Committee advises the Board and the Chief Executive in relation to the exercise of certain Commission functions under the National Lottery Act National Lottery Act 2006 (legislation.gov.uk). The Committee has decision making powers in a number of areas delegated to it by the Board. A significant part of the Committee’s business is engagement with and review of the National Lottery operator’s strategy and performance.
In 2023 to 2024 the Committee’s main focus was the management of the operator’s exit from the 3rd Licence and the closedown of the Commission’s 3NL operation. On 19 March 2024, the Board agreed that the National Lottery Committee will close in September 2024 once 3NL activity is completed and Governance for 4NL regulation will be Business as Usual without a committee.
National Lottery Competition Committee
The National Lottery Competition Committee advises the Board and the Chief Executive in respect of the National Lottery Fourth Licence competition, and through oversight of the process of the competition. The Committee has decision making powers in a number of areas delegated to it by the Board. The Senior Responsible Officer for the competition, John Tanner, has also been a member of the Committee since November 2019.
In 2023 to 2024, the Committee has focused its work on the award of the licence and implementation of the transition between the third licence and fourth licence, oversight of ongoing litigation and stakeholder management. On 19 March 2024, the Board agreed that the National Lottery Competition Committee will close with immediate effect and will be replaced by a Programme Board for the remaining duration of the 4NL Programme.
The Executive Team
The Executive Team leads the management of the Commission, making decisions about projects, policy, procedure, issues and cases which cannot be resolved at an operational level as they are novel or contentious, or significantly affect the Commission’s finances or staff.
The scope of the Executive Team therefore extends to:
- strategic leadership of the Commission
- collective concentration on strategic issues affecting the Commission
- scrutiny and challenge of Commission policies and procedure
- review of business delivery, operational and financial performance.
The Executive Team also agrees items for escalation to the Board of Commissioners.
The Commission draws on other areas of specialist knowledge by retaining four expert groups. Members of these groups do not have any delegated powers but provide advice to inform Commission policymaking and practice. Members of expert groups are bound by their codes of conduct and the Commission’s Managing Conflicts of Interest Policy.
Advisory Board for Safer Gambling (ABSG)
The ABSG provides independent advice to the Commission on issues related to safer gambling and prevention of harms to inform regulation. The ABSG is chaired by Dr Anna van der Gaag CBE.
Digital Advisory Panel (DAP)
The DAP comprises experts from the digital sector, including specialists in networks, retail and logistics. The DAP provides the Commission with advice on matters regarding technology, digital trends and the implications for the Commission as a regulator. The DAP is chaired by Andy Payne.
Lived Experience Advisory Panel (LEAP)
LEAP provides expert independent advice based on its members’ personal lived experience of gambling harms.
LEAP members are appointed by the Commission based on their individual personal experience of gambling harms. The group’s membership, collectively, is designed to provide perspectives from experience of a wide range of gambling harms. Gambling harms take many forms and can result from people’s own gambling or from the gambling of somebody else, such as a family member.
Industry Forum
The Industry Forum provides the Commission with insight into the views of industry about the Commission's plans, the quality of Commission services, and the wider environment in which gambling operators work.
Senior Independent Director
The Senior Independent Director (SID) holds an important role within the governance structure. Consistent with the UK Corporate Governance Code and with DCMS guidance, the Board has appointed a Senior Independent Director from among its current members.
The role of the SID is to provide a Board-level lead for high standards of governance, act as a sounding-board for the Chair and act as a route to resolve any concerns about the operation of the Board.
Catharine Seddon was the SID for the Commission during the 2023 to 2024 year.
Last updated: 17 October 2024
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