The Gambling Commission’s new enforcement strategy

The Gambling Commission has today unveiled its new enforcement strategy which will be used to tackle operators who breach gambling regulations. Its responses to its enforcement strategy consultation document can be downloaded below.

This follows the Commission’s consultation “Changes to our enforcement strategy: putting the consumer first” on which we have previously reported. You can also also read David’s articles on the consultation for Online Gambling Lawyer and SBC News

It is evident that some of those responding to that consultation suggested that “regulatory creep” was occurring in that the Commission was seeking to extend the licensing objectives and the Commission’s regulatory authority. The Commission denies this, saying “The changes that we proposed within the consultation were consistent with our longstanding obligations under the licensing objectives and therefore are consistent with our expectation that operators put consumers first”.

Key changes to the enforcement policy follow the original consultation proposals and include:

  • changes to the Commission’s statement on financial penalties including introducing higher penalties for breaches, particularly where it considers that systemic and repeated failings have occurred (which is something of which operators that have been the subject of previous casework by the Commission must take particular note)
  • putting all regulatory tools, including licence review (both of the operator and personal management licences), on an equal footing by removing what the Commission describes as “the current bias in favour of settlement” and
  • using time-limited discounts “to create better incentives for early settlement” (i.e. a resolution between the Commission and an operator in cases where, following regulatory concerns having been raised, the Commission and the operator agree on a course of action that meets the Commission’s regulatory objectives, without having to use the Commission’s regulatory powers; this contrasts with the Commission using its powers to impose a statutory sanction following a licence review).

The key documents underpinning the Commission’s approach to enforcement can be accessed by clicking on them below:

Unveiling the new enforcement strategy, Sarah Harrison, Commission Chief Executive, said: “We will use the full range of enforcement powers to ensure operators put customers first and raise standards. The industry can be assured that we will use our powers in a targeted way, and consumers and the public can be assured we will take robust and effective action when gambling companies don’t meet their obligations.” 

It is also worth noting Sarah Harrison’s following comment in her speech at the Commission’s November 2016 Raising Standards conference: “Operators who spot an issue, declare it to us, implement a quick and effective improvement plan, focussed on preventing reoccurrence, and who make redress to consumers, should be credited. In this instance, we would certainly consider resolution through settlement rather than licence review”. As a result, all operators who identify a regulatory failing should immediately pose themselves the following question: “What did we do and who did we focus on when we realised we had a problem?” and in coming up with the answer, they should remember that the clue was in the title to the Commission’s consultation – “putting the consumer first”.