1. Gambling Compliance Briefing Some guidelines on the new environment by Peter Wilson 27 February 2008

2. Structure of UK licensing regime Operating, Personal & Premises Licences Permits Exempt Gaming

3. Key Offences Providing facilities for gambling (s33) unless: Hold operating licence & in accordance with conditions Hold personal licence & comply with conditions Hold permit or exempt gaming Using premises for gambling (s37) unless: Hold premises licence Hold relevant permit or exempt gaming Manufacturing, supplying, installing or adapting gambling software (s41) without a licence

4. IT IS A CRIMINAL OFFENCE TO BREACH A CONDITION OF AN OPERATING OR PERSONAL LICENCE

5. What are my obligations as a Personal Licence holder? Must take reasonable steps to ensure that you do not place the operating and/or premises licence holder in breach of their Operating Licence conditions Must keep informed about gambling law, Codes and any Gambling Commission (GC) guidance

6. What do I need to know? Guidance Codes of Practice Licence Conditions Statutory Instruments Gambling Act 2005

7. Key Licensing Objectives Preventing gambling from being a source of crime and disorder Ensuring gambling is conducted in a fair and open way Protecting children and other vulnerable persons from being harmed or exploited by gambling

8. Licence Conditions and Codes of Practice General & Specific Operating Licence Conditions Codes of Practice Premises Licence Conditions (non remote) ALL LICENCE CONDITIONS AND SOCIAL RESPONSIBILITY CODES OF PRACTICE ARE LEGAL REQUIREMENTS

9. What do the Codes and Conditions cover? Licensing Objectives Problem Gambling Complaints & Disputes Under age Gambling Money Laundering Reporting Obligations Legal Advertising Technical Standards Fair Terms & Conditions

10. Problem Gambling Policies to contribute to: Research into prevention & treatment Public education on risks & gambling safely Identification & treatment of problem gamblers

11. Codes – Social Responsibility information Information (for customers & staff) on how to gamble responsibly & get help Policy should cover: Measures to limit sessions or money spent Self exclusion options Social Interaction Where to get help or advice

12. Codes – Access by children & young persons Implement policies to prevent underage gambling: Check age of those apparently underage Refuse entry to adult-only areas if no ID Take action where unlawful attempts to enter adult-only areas Ensure staff know responsibilities: To prevent underage gambling What are acceptable forms of ID Return stakes and not pay prizes to children Challenge adults complicit in underage gambling

13. Children & Young Person Offences Inviting or permitting a child or young person to gamble Inviting or permitting a child or young person to enter an adult only area of an FEC Failing to return a stake or refuse a prize Employment offences

14. Codes – Fair and Open Gambling contracts are legally enforceable Must be able to produce evidence to show terms of gambling are not unfair Must be fair under Unfair Terms in Consumer Contracts Regulations 1999 Where applicable, must pass the reasonable test in Unfair Contract Terms Act 1977

15. Complaints and Disputes Complaint = a complaint about any aspect of licensee’s conduct of licensed activity Dispute = a complaint which Is not resolved, and Relates to outcome of gambling transaction

16. Complaints and Disputes contd. Provide complaining customer with: Name & status of person to complain to Copy of complaints procedure Keep record of complaints not resolved at first stage Customer must be able to refer dispute to independent 3 rd party if they wish File with GC copy outcome of disputes referred to 3 rd party

17. Money Laundering Regulations 2007 Now applies to UK licensed internet casinos Must verify identity and residence of customers Must have Money Laundering Reporting Officers Anti-money laundering policies & Staff training Have you got a contingency plan in place to deal with any investigation?

18. Codes – Money Lending Seek to prevent systematic or organised money lending between customers on premises Policy for staff to report any incidents of substantial money lending

19. Reporting and General Compliance Notify GC of key events as soon as reasonably practicable & in any event within 5 working days Respond to GC requests about use made of gambling facilities & manner carried on Regulatory Return within 28 days of end of each quarterly or annual period – starting 1 October 2007 Compliance visits

20. Key events that must be reported Where serious misconduct alleged v PML Departure of PMLs from business Internal fraud over £10k Acquisition or disposal of gambling premises Insolvency Material Litigation Unsatisfied judgements Reduction in staff or assets by more than 10%

21. Advertising - Who can legally advertise to or in the UK? Properly licensed UK operators Offence of advertising unlawful gambling Those regulated by a European Economic Area (EEA) State i.e. 27 EU states plus Norway, Liechtenstein and Iceland Gibraltar – an EEA place (but not a State) White Listed Jurisdictions

22. Who are the white listed jurisdictions so far? Alderney Isle of Man Tasmania (from 31.01.08) Who applied and was rejected? Curacao Antigua Khahnawake … and others not publicised

23. Advertising to UK – legal or illegal?* Alderney 39 Isle of Man 11 Costa Rica 242 Panama 16 Khanawake 376 Curacao 298 Antigua 189 Malta 210 Cyprus 19 Gibraltar 127 UK sites 99 *Source – www.CasinoCity.com for those accepting play from UKwww.CasinoCity.com Belize 46 Philippines 13 Tasmania 2

24. If you advertise a non EEA /White listed … Criminal offence of advertising foreign gambling – s331 of 2005 Act Punishable by maximum 51 weeks prison and/or maximum £5,000 fine But what is advertising and who does the offence apply to?

25. Codes – Advertising Code for socially responsible advertising Broadcast Advertising Non Broadcast Advertising

26. CAP & BCAP Codes - Examples Marketing communications should not be: Socially irresponsible Exploit the vulnerable Shown as an escape from loneliness etc As a solution to financial concerns Portrayed as enhancing personal qualities Linked to sexual success or toughness Directed at under 18 year olds (except football pools & lotteries) Portray gambling in working environment

27. Industry Code Target audience should be 18 years or over Adverts should have a link to www.gambleaware.co.uk www.gambleaware.co.uk No televised adverts before 9pm watershed except sports betting around sporting events & bingo or pools No logos or promotional material on commercial merchandising for children’s use

28. Premises licences – mandatory conditions All premises: Summary licence document shall be displayed prominently within premises Layout of the premises to be maintained in accordance with plan Sale of tickets in private or customer lotteries or the National Lottery prohibited

29. Example - Bingo – mandatory & default conditions Notices prohibiting under 18 years playing bingo or on Category B or C gaming machines Supervised barrier if adult machines Cat B and C machines area Notice of admission and/or game charges No gambling between 12 midnight and 9am (default condition)

30. What if there is a breach of the Conditions or Codes? Formal Warning Suspend Licence Attach a condition to a licence Revoke Licence Impose Financial Penalty PROSECUTION

31. Who deals with gambling law compliance? A Policeman A GC Enforcement Officer An Authorised Person i.e. from Local Authority

32. When can they enter premises? Power of entryPurpose Suspected offenceSuspicion of any offence under Act Inspection of gamblingCheck Licences & compliance with them Operating Licence holder’s premises Check activities carried out under Licence Alcohol Licensed premisesCheck Exempt gaming, bingo & machines Prize GamingCompliance of prize gaming with Act ClubsCheck Exempt gaming & permits Licensing Act PremisesAs part of Local authority Review

33. Powers on entering premises Policeman, Enforcement Officer or Authorised Person may: Inspect any part of premises, machine or other thing on premises Question any person on premises Require access to any records & be given copies (including electronic records) Remove anything believed to be evidence of offence/ breach of licence condition Remove anything used in offence

34. Offences in relation to inspections Without reasonable excuse, obstructing, or failing to cooperate with an officer exercising his powers under the Act Providing false or misleading information to the GC or Licensing Authority

35. Gambling Compliance Briefing Peter.Wilson@bllaw.co.uk