As part of our recent webinar on iGaming Audits, White Hat Gaming’s?General Counsel and Head of Legal, Compliance & Regulation?Emma Richardson shared her top tips for audit preparation.?Establishing regulatory compliance isn’t something that can be achieved overnight. But these tips provide some quick routes to a successful audit.???

1 –?Keep a diary??

Keeping a diary is important?because it allows you to track any changes you made?over time.?Auditors?will ask for a rationale behind?any?threshold you put in and because it’s a risk based approach you have to have evidence to show?when, why?and?how?you made the decisions you did.?

2?–?Have?staff?on call??

Have an experienced audit team on call, ready to jump in at any moment to handle any potential issues that may crop up during the audit process.?

3-?Chairperson for audit?

Choose a senior chairperson, such?as a lawyer or senior compliance person?who will help run the agenda and?determine?who answers what question. This person can tactically ask for breaks during audits, monitor the audit team and set tone for the day.?

4?–?Opening Presentation?

If you are allowed, open with a?15 minute presentation to set?a professional and collaborative?tone. Introduce?yourself:?who you are and what?you?stand for,?the team ready to help the auditor, what happened since?the?last audit.??

5 – Closing Speech?

If you are able, assign someone to keep track of all positive comments during the audit,?as well as a note taker to keep track of what the auditors are picking up. You can then?include this in?a closing speech at the end of the process?along with your task list going forward.?

6 – Keep a repository?

Have a repository of all of your?policies?and?processes and examples?and evidence?of them?working in practice.?A?champion?is needed to?monitor?the repository and push?when policies need renewal?or updating.?

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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.

The UKGC published stern advice for online operators this week, reminding licencees of their responsibilities while COVID-19 continues to impact consumer behavior.

The commission restated the heightened vulnerability of new and long-term customers during lockdown and made clear that any violations would be taken extremely seriously.

“No one should be in any doubt about how closely we are monitoring issues or our willingness to take further action if we deem that necessary” said Neil McArthur, Chief Executive of the UKGC.

Troubling behaviours

McArthur outlined several new issues that are predicted to affect gambling behavior:

• People spending more time at home.
• Restricted lifestyles.
• Uncertainty over personal/financial circumstances.
• “Highly engaged” customers who may spend more time and money gambling.
• New people who might gamble for the first time.

The Commission reminded companies to follow the stringent COVID-19 guidelines set out in its social responsibility code, particularly with regards to increased use of gambling services.

Specifically the UKGC encouraged companies to “avoid any temptation to exploit the current situation for marketing purposes and be very cautious when seeking to cross-sell products.”

Neil underlined that the UKGC will continue to monitor operators very closely and strengthen regulatory requirements, including changes to RTS and LCCP in the interest of consumer safety.

Sharing insights

Companies have also been invited to share insights – including original data and analysis?– that could be useful in customer protection, as well as anything that could help the UKGC Statistics team make sense of the impact of the pandemic on the industry.

The commission also encouraged those who felt troubled by operator behaviour to email the gambling commission directly or use their confidential hotline.

McArthur highlighted the troubling times for the industry and the desire of the UKGC to continue to practice a good working relationship with its operators.

“The gambling industry and daily life as a whole continues to be impacted by the pandemic and whilst there is some light and hope ahead with the vaccine, I want to ensure operators are clear of our expectations. Since March we have all adapted to new ways of working and this new phase will be a challenge for us all. However, operators must now more than ever, continue to be vigilant to protect their customers.”

The message is clear; now more than ever companies have a responsibility to ensure they are complying with UKGC regulations, and acting to ensure the safety and wellbeing of their customers.

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Explore Our Training Solution for UKGC Operators

To ensure you are fully compliant with the latest regulatory policies and directives from the UKGC explore iGaming Academy’s training solution for UKGC operators today. We supply a full suite of high quality, regulatory training courses via eLearning, providing an efficient and effective way to train your entire company.

Contact us to find out more

The UK Gambling Commission (UKGC) has always given high priority to the licensees of Social Responsibility. In October the Commission called specifically for increased attention to be paid to high value “VIP” customers. They encouraged improvements to safer gambling and money laundering controls by ensuring that special incentives and tailored services aimed at VIP customers does not put them at risk.

Industry guidance by the UKGC on High Value Customers (HVCs) came into effect from 31 October 2020. The guidance covers those customers identified as being of enough commercial value to warrant enhanced customer service, unavailable to the wider customer base. However, the Commission doesn’t provide a single specific definition of HVCs and expects a licensee to determine those customers based on a licensee’s business model.

The licensed operators will have to comply with the new guidance and limit HVC schemes. They will also have to carry out thorough safer gambling and affordability checks by assessing whether there is evidence of gambling related harm, self-exclusion or heightened risk linked to vulnerability. Moreover, they will be required to establish that spending is affordable and sustainable as part of the customer’s leisure spend before they can join the operators’ VIP schemes. These checks should be accompanied by enhanced due diligence to ensure the licensee has up to date evidence relating to identity, occupation and source of funds. The assessments for existing VIPs are to be carried out retrospectively.

Operators licensed by the UKGC must take all reasonable steps to verify the information provided to them and keep it under regular review. The frequency of reviews should correlate with risk assessment based on ongoing monitoring of the customer’s activity, behaviour and circumstances. Where a customer is unable or unwilling to provide the information required, they should not be considered eligible for VIP schemes.

New guidance triggers changes into the operating model of operators’ business. From now on, each rewards programme should have a named individual at senior executive level or equivalent, accountable for the programme’s compliance. Enhanced training on safer gambling and AML risks specific to HVCs management is required for VIP customer service and account management staff.

In addition to this, all licensed operators are required to comply with wider requirements of the LCCP for consumer protection.

Compliance Training For UKGC Licensees

iGaming Academy offers compliance courses for UK Gambling Commission licensees, ensuring effective employee training regarding obligations on Responsible Gambling, Customer Interaction and Anti-Money Laundering and more. Learn more or Contact Us to arrange a meeting.

The marketing and advertising rules for gambling industry haven’t changed due to the global COVID-19 pandemic, but European regulators have clearly highlighted the areas of public concern.

The European Gambling Associations issued Guidance On Safer Online Gambling And Responsible Advertising, while the UK’s Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA) published a series of guidelines, blogs and rulings, setting out their revised priorities and policies during this period.

Advertising authorities are working in partnership with customer protection institutions to prevent online disinformation and COVID scams.

European gambling operators should keep apparent references to coronavirus from gambling advertising and ensure that World Health Organisation statements don’t appear in marketing campaigns. Online gambling should not be portrayed as a solution to social, personal or financial problems or an escape from boredom.

The UK Advertising Standards Authority (ASA) encourages people to report gambling ads violating the rules, such as referring to alleviating boredom by gambling during the lockdown, while the Gambling Commission reminded operators that people may be particularly vulnerable at this time and issued new customer protection guidelines for online operators.

The ASA has been very clear that it will take an extremely dim view of anyone seeking to capitalise on the pandemic to sell products or services, saying:

“Think very carefully before you make any direct or implied claims about coronavirus or COVID-19 in your advertising – all ads must be prepared with a sense of responsibility to consumers and to society and the ASA is unlikely to have any patience for marketers seeking to unfairly exploit the outbreak to sell products or services or otherwise make claims that would be considered socially irresponsible.”

The gambling operators should consider their future reopening campaigns and review existing adverts which may trigger complaints because they are no longer appropriate at this time. Avoid depicting people hugging each other, sharing food with their hands or taking part in mass gatherings.

Advertising has always required sensitivity to the unintended public impact and now the industry has new circumstances to consider while conveying the key message to their clients.