UK Government Announces Proposed Changes To Remote Gambling Licensing
In a written statement of 14th July 2011, John Penrose MP, the Government Minister with responsibility for gambling has confirmed the UK Government's intention to pass primary legislation to amend the Gambling Act 2005 to revise the UK's approach to remote gambling licensing. This is a much delayed response to a public consultation initiated by the last government, and responds to concerns that most of the online gambling operators with whom UK residents gamble are not licensed in this country and are not subject to the same regulatory controls as those which are, and that they are also not generally required to pay a fair share towards the costs of research, education and treatment of problem gambling in Great Britain.
It is proposed that all gambling operators, irrespective of their location will be required to obtain a British remote gambling licence in order to transact with British residents and to advertise here.
The British law would therefore change from licensing at the point of origin to licensing at the point of consumption, consistent with the developing regulatory landscape across Europe.
A transitional period is proposed, with EEA and "white list" licensees (i.e. those currently able to advertise in Britain without a licence) either entitled to or eligible for an automatic transitional licence to prevent an interruption to their trade with British customers.
The white list would eventually be phased out, as operators from anywhere in the world would be entitled to apply for a British licence. Instead, it is suggested that the Gambling Commission will adapt their approach to licensing depending on where the applicant for a British licence has its primary licence, applying a "lighter touch" to those from trusted jurisdictions, with the intention of minimising the duplication of compliance requirements.
Whilst the changes are said to be driven by the desire for greater consumer protection and the creation of a "level playing field" for UK operators, the changes will clearly create an opportunity to levy taxes on overseas operators who currently pay no tax to the UK government. At this stage we do not know what line HM Treasury will take, but no doubt we will learn more of their intentions as a bill progresses through Parliament.
As primary legislation is required to effect these changes, they are not imminent, but operators likely to be effected would be well advised to start to plan ahead.
Please contact Nick Nocton, Tony Coles or Charles Gerada at JGR's Gaming and Betting Group for further information.
Nick Nocton: njn@jgrlaw.co.uk
+44 (0) 207 339 7088
Tony Coles: arc@jgrlaw.co.uk
+44 (0) 207 339 7004
Charles Gerada: ccg@jgrlaw.co.uk
+44 (0) 207 339 7035
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