The British Gambling Market: Gambling Regulations in Great Britain Andrew Danson 7th December 2018

The British Gambling Market Comparative legal study Long-established regulated commercial gambling sector Cultural acceptance of gambling as a form of entertainment for adults 2,820 operators licensed by the Gambling Commission, 360 of which operate across more than one sector (as at 31 March 2018) £14.4bn total Gross Gambling Yield (GGY) of the Great Britain gambling industry (Apr 2017-Mar 2018) All of this activity is regulated, all of the revenue is taxed.

Regulated British Gambling Revenues Source: Gambling Commission industry statistics

Regulated British Gambling Revenues Source: Gambling Commission industry statistics

British Regulatory Framework Gambling Act 2005 Regulates almost all forms of gambling, online and offline: Betting (except spread betting) Gaming Lotteries (except the National Lottery) Created a statutory regulator – Gambling Commission Established a licensing regime for commercial betting and gaming Regulates the advertising of gambling Three key licensing objectives Protecting children and the vulnerable Keeping crime out of gambling Fairness for consumers Creates offences Regulates at point of supply AND point of consumption

Gambling Commission Dedicated statutory regulator Single regulator for commercial gambling and National Lottery Licensing regime Operating licences Personal licences Premises licences National Lottery licence Licence Conditions and Code of Practice Significant amount of published documents and guidance Broad powers of investigation and enforcement Licence suspension/revocation Unlimited fines Enforcement activity increasing exponentially

Advertising Regulation Principle – lawful gambling may be advertised Heavily regulated Gambling Act 2005 Unlawful gambling – not licensed in GB when should be Children Licence Conditions and Codes of Practice ASA Codes – CAP and BCAP Similar approach to that taken to alcohol Focus on social responsibility and protection of children Gambling Industry Code for Socially Responsible Advertising www.gambleaware.co.uk message Watershed (sports and bingo exception) Others, e.g. misleading marketing laws

Licensed Commercial Gambling Betting & Gaming Betting Sports betting Event betting Lottery betting Betting exchanges NOT spread betting (regulated by the FCA) Gaming Casino games Slots Poker Bingo

The British Lottery Market (1) National Lottery Established by National Lottery Act 1993 Regulated by the Gambling Commission Long term exclusive licence Same licensee (Camelot) since launch in 1994 Current licence expires 2023 New tender process to launch next year £1.5bn in contributions to good causes (Apr 2017-Mar 2018)

The British Lottery Market (2) Charity Lotteries "Charity Lotteries" Large Society Lotteries Ticket sales capped at £4m per draw; £10m per year Jackpot capped at greater of £25k and 10% of proceeds (£400k) Minimum 20% of proceeds to good causes Require Gambling Commission licence £296m in contributions to good causes (Apr 2017-Mar 2018) Small Society Lotteries Ticket sales capped at £20k per draw; £250k per year No need for Gambling Commission licence, but must register with local authority Government consultation on increasing sales and prize limits "Umbrella" society lotteries Local Authority Lotteries Exempt Lotteries

The British Lottery Market (3) Secondary Lotteries Betting on lotteries Permitted with Gambling Commission licence No limit on stakes or prizes, no requirement to fund to good causes No betting permitted on UK National Lottery or Euromillions Lottery Brokerage Not really present in UK market, unlike Germany External Lottery Managers can manage charity lotteries Lottery Syndicates Syndicate organiser owns tickets; members have contractual rights Permitted, with no licence needed Lottery Messenger Legal grey area; not currently enforced

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