Gemma Boore, a corporate and commercial solicitor at Bates Wells Braithwaite in London, considers the implications of the new UK Gambling Act on operators, affiliates and software providers.
AS many will know, the Gambling (Licensing and Advertising) Act (“the 2014 Act”) came into force on November 1, 2014, and any operator that wishes to advertise or provide remote gambling services to customers in the UK will now need to obtain a licence from the UK Gambling Commission (“the Commission”).
Many operators have been busily preparing for the change and have applied for and been awarded continuation licences by virtue of the fact they provided gambling facilities to UK residents before the introduction of the new legislation.
These operators now have to adapt their businesses to the new regulatory landscape and familiarise themselves with the obligations imposed upon them. And it’s not just offshore operators that will be affected by the 2014 Act. In addition, software providers that supply gambling technology to operators and affiliates that advertise on their behalf will also be affected. This article explores the consequences of the introduction of the 2014 Act for each of these entities from a legal standpoint. Implications for operators.
The 2014 Act was introduced in order to rectify shortcomings that have been apparent since the introduction of the Gambling Act 2005 (“the 2005 Act”). This enabled certain offshore operators to advertise their operations to the UK market without being licensed (or taxed) by the UK authorities as long as none of their key equipment was located in the UK.
The UK government has now brought these operators back into the remit of Her Majesty’s Revenue and Customs and the Commission by introducing point-of-consumption regulation, whereby remote gambling operators with facilities capable of being used in the UK will be required to apply for a UK licence and contribute to UK gambling tax. Failure to comply will incur fines, licence withdrawal and a prison sentence of up to seven years.
However, even if operators do choose to apply for a licence and it is granted by the Commission, the regulatory buck does not stop there. Licences will be put at risk if operators do not comply with the conditions attached. If they do not comply, the Commission can take action and may do anything from issuing a warning to revoking a licence and imposing a financial penalty.
Read the full article in the latest issue of iNTERGAMINGi
