Change is on the horizon as government research begins into the questions outlined in the Gambling Act Review. Companies need to decide now how they are going to take action to prepare for future regulation change and new restrictions.

The Gambling Review

The review will aim to answer questions that have arisen about the need for new legislation to keep pace with the explosive growth of the industry over the last 15 years. This will cover everything from effective customer safety controls for games to advertising regulations and of course, the UKGC’s regulatory powers and resources. It is widely expected that the outcome of this review will bring many new regulations as well as greater levels of scrutiny for operators in line with the UKGC’s recent tougher stance on non-compliance.

Currently in progress, a 16 week call for evidence will conclude on 31 March 2021. The Government’s proposals will then be published later in the year as a white paper.

The outcome of this review will certainly bring about large scale industry-wide change,? but the specifics of what, when and how are yet to be decided. In the meantime companies need to do everything they can in order to stay ahead of the information curve.

How to get ahead

All we know for certain is that change is coming and that the existing rules may change. Staying abreast of current compliance legislation can be difficult as it is often updated, for example recently the UKGC announced strict new controls for online slots banning autoplay, reverse withdrawals, disillusioning sounds or images and game speed modifiers.

1. Focus on achieving full compliance with current regulation.

It’s clearly critical to remain in full compliance with existing legislation, even as the rules are up for review. Since new regulation is likely to build on much of the existing as a framework, this will also double as effective preparation for whatever changes are to come.

2. Strengthen compliance and governance processes

?New responsibilities are likely to be intense, and closely scrutinised. Now is therefore the time to ‘get your house in order’, resolving any structural issues that could stand in the way of a rapid and effective roll-out of new regulatory processes.

3. Develop effective compliance training for staff?

Every member of staff will need to know their new obligations and understand the nuances of new guidelines. With such a major change likely, it is critical that this training exercise be effective and provide clarity for employees. Our compliance eLearning for UKGC service will be the ideal solution for many.

4. Hire specialist compliance experts

Gaming compliance expertise is in extremely high demand and talent is scarce. Those operating in the UKGC would do well to prioritise compliance recruitment at this time in preparation for changes to come.

5. Engage proactively with the review process

The industry is engaged with the review process, and rightly so. All changes need to be workable, and industry expertise is also critical in ensuring that changes actually achieve the outcomes that politicians desire.

Preparing for UKGC compliance training

Staff training will always be critical when it comes to achieving compliance. Investment in company-wide training schemes are already a key part of staying ahead of the regulators and this will be no different going forward. It will, however be difficult to adjust to so many potential large-scale changes at once.

Our compliance training courses are updated as regulation and guidelines evolve. As iGaming compliance specialists, we ensure our clients can always provide their employees with the latest training. , Over 40,000 professionals train with us every year, across 100+ companies in 45+ countries.

iGaming Academy specialises in industry-specific compliance and product eLearning and has extensive experience training professionals of all levels within online gaming, land-based casinos, lotteries, and betting shops.

All our courses are kept up to date, meaning staff will be educated and trained to comply with any new regulations and restrictions that may come about as a result of the Gambling Review.

In order for the gambling industry to be a true part of the evolution of regulation, its professionals need to be immersed in the issues and given the scope to explore solutions. iGaming Academy will keep all our clients fully informed on updates to the current regulations as they roll in as well as facilitating relevant training through our mobile learning platform.

iGaming Academy offer a key component in a successful organisations’ compliance infrastructure. Now is the time to build training properly into your organization, connect with iGaming Academy today to futureproof your business.

Contact us today to arrange a UK compliance training consultation and eLearning platform demo.

This article is part of our UK Compliance Focus series, examining regulatory infringements that were penalised in 2020, the business impacts of non-compliance and what can be done to minimise future risk. Read The Full Series

In 2020 operators faced financial penalties amounting to a 50% increase on 2019. The UKGC has been meting out harsher fines, perhaps in response to widespread criticisms of its toothlessness. Common failures penalised by the commission tend to centre around Anti-Money Laundering and responsibility checks. The majority of cases fall into the category of “preventable”; some simple steps could have, if not eliminated, then at least significantly reduced the risk of failure.

The Fines

In 2020, eight operators were fined a total of more than ￡33million – along with significant associated reputational damage – for non-compliance with UK gambling legislation. Hundreds more were investigated and many warned. All the following companies were fined in 2020.

Triplebet Ltd were fined ￡740k after serious problems were found with the operator’s response to AML, monitoring of business relationships and diligence checks into members of gambling syndicates. BGO Entertainment Limited were fined ￡2m for social and AML control failures. This led to negative effects on customers using its online casino properties. Boylesport Enterprise was fined ￡2.8m for AML failures. Its AML policies, procedures and controls were unsuitable and the operator did not have an appropriate AML risk assessment in place. Mr Green was fined ￡3m for failing to prevent money laundering and problem gambling.

Anti-Money Laundering comes up time and time again, with companies failing to notice red flags related to money laundering or financial terrorism, often due to lack of effective training. The fines listed so far are already large but penalties can go far higher in the case of drastic AML failings, especially in combination with lack of social responsibility checks.

Betway was fined ￡11.6m for accepting stolen money from ”VIP” customers with gambling addiction problems. Caesars Entertainment UK were fined ￡13m for systemic failings. The company drastically failed in its social responsibility, in particular it did not have adequate interaction with customers who previously self-excluded and lost ￡240k and ￡323k each. It failed to carry out proper source of funds checks enabling a customer to drop ￡3.5m and lose ￡1.6m over a period of 3 months.

More than tough talk from the UKGC

It’s clear that the UKGC is taking an increasingly tough approach to enforcement, “consumer safety is non-negotiable” says UKGC Chief Neil McArthur.

“We are absolutely clear about our expectations of operators – whatever type of gambling they offer they must know their customers. They must interact with them and check what they can afford to gamble with – stepping in when they see signs of harm.”

The UKGC has been criticised in the past for failing to keep pace with the rapid growth of the gambling industry, but is working hard on multiple fronts to change this. Only this month the UKGC announced strict new controls for online slots banning autoplay, reverse withdrawals, disillusioning sounds or images and game speed modifiers.

Behind the scenes the commission is re-strategizing and reorganising to tackle the growing online market, and with the Review of the Gambling Act 2005 already underway it is expected to be granted further powers.

The commission is “constrained by factors outside its control, including inflexible funding and a lack of evidence on how developments in the industry affect consumers,” according to the National Audit Office (NAO). The NAO and Parliamentary reports have recommended a review of the Commission’s current fees to ensure it has the funding and staffing required to impose tighter restrictions effectively in future.

With larger fines, stricter regulations, and a more powerful UKGC on the horizon, what can operators do to stay one step ahead?

Minimising Risks: Simple Steps To Compliance

Complying with government regulation is critical; it’s good for business and it’s good for customers. Gambling regulation is there for a reason – predominantly the protection of individuals from harm. But with the thread of ￡multi-million fines and even license withdrawals, there are also clear businesses reasons for ensuring optimal compliance.

How can businesses ensure compliance with UK gaming regulation, then? It can certainly be challenging, particularly when operating at scale with large teams, complex online products and an ever-evolving technical landscape.

A critical first step is that gaming operators and suppliers must first ensure that all staff fully understand the regulations, the UKGC’s guidance and their relevant responsibilities. It is vital that this knowledge is communicated clearly and refreshed regularly, particularly as information evolves.

Staff can then be expected to take responsibility for ensuring best practise throughout the operation, whilst clear processes and auditing structures provide a safety net to spot and resolve issues prior to the regulator’s involvement.

By properly addressing regulatory compliance challenges, and taking a few simple steps to mitigate risks, the vast majority of failings can be avoided. And it’s in everyone’s interests to do so.

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Minimise Risk with our UKGC Compliance Training

iGaming Academy offers a suite of eLearning courses designed for operators and suppliers in the UKGC jurisdiction. All our courses are highly engaging and are updated in-line with new guidance.

Contact us to arrange a consultation.