Video: Submitting a defence against money laundering

 **Claire Wilson (CW):**  I’m Claire Wilson. I lead on the anti-money laundering and counter terrorism financing strategy for the Gambling Commission. I worked for the Commission for 11 years and prior to that I worked in the gambling industry for 15 years.

 This video is being jointly made with our partners at the National Crime Agency. Our hope is to make available to you, a collection of videos that signposts of good anti-money laundering guidance and share with you some practical tips to help you with your SAR reporting and AML training.

 The Commission recognises that operators submit good quality SARs and we want to maintain that quality and improvement where we can.

 The video box set will be released throughout September 2018 and each video will have specific themes.

 In each video we will share with your answers to questions raised at the Gambling Commission anti-money laundering forums and more recently in surveys has been introduced on the Gambling Commission website.

 The main focus of this video about making good quality defence against money laundering SARs. Defence against money laundering SARs tend to be called DAMLs.

 I am pleased to introduce Tony Fitzpatrick from the National Crime Agency who last year was the DAML team leader and has first-hand experience in dealing with a wide variety of DAML type SARs.

 **Tony Fitzpatrick (TF):**  Yeah, hello everybody. My name is Tony Fitzpatrick and I work for the National Crime Agency.

 Just one key caveat I’d ask you to keep in view, anything said in this video is meant to be helpful and it’s based on sharing experiences of what is seen in the SARs and described by some experienced Money Laundering Reporting Officers or Anti Money Laundering consultants.

 Any comments made during this video should not be treated as legal advice. If in doubt, the key recommendation I’ll give you is that seek independent legal advice.

 **CW:**  Thanks Tony. Let’s start with some definitions. So, what is a DAML?

 **TF:**  A defence against money laundering (a DAML) can be requested from the NCA where a reporter has a suspicion that property they intend to deal with is in some way criminal and that by dealing with it, they put themselves at risk for committing one principle money laundering offences under the Proceeds of Crime Act 2002.

 The NCA is empowered by the United Kingdom legislation to provide defences under section 335 of the Proceeds of Crime Act, so a person by submitting a DAML to the NCA can receive appropriate consent.

 It is common for these to be called a grant letter within the NCA. It means that the NCA, based on information provided, has been able to make a decision and grant a person a defence against money laundering offence.

 It must be remembered it is only a defence to money laundering and a defence for the prudent acts described by the DAML reporter. It does not give a carte blanche defence to any other crimes, for example corruption, bribery, fraud, etc. The appropriate consent is granted by the NCA is only for money laundering.

 **CW:**  Thanks Tony. So, what are the money laundering offences this defence is for?

 **TF:**  The elements and the details for each for each offence is fully defined in sections 327 to 329 of the Proceeds of Crime Act, but in summary the money laundering offences relate to most of the activities you could be involved with when dealing with criminal property, and this includes a number of things.

 It could be to do with concealing, disguising, converting, transferring, or remoting criminal property from England and Wales, or from Scotland, or from Northern Ireland.

 It could include arranging when someone’s involved in an arrangement to assist in money laundering.

 It also includes becoming concerned in an arrangement in which someone knowingly suspects or facilitates the acquisition, retention, use, or control of criminal property by or on behalf of a person.

 And finally, it also includes acquiring, using, or possessing criminal property.

 **CW:**  Thanks Tony. So, if someone decides to put in a DAML to the NCA what happens to the DAML once it’s submitted?

 **TF:**  Well Claire, a considerable amount of effort is put in by the NCA and every single DAML is read and analysed. A sophisticated triage system is used and in simple terms, the DAML team will prioritise a DAML using phrases or codes, for example it might relate to a vulnerable person, in some cases it could involve child abuse or human trafficking, where risks are present for a number of victims. It might be a DAML in relation to millions of pounds in the country to a place where we may never get it back.

 The DAML team will check to ensure that a DAML matches the required criteria. Without the correct criteria the DAML officer is not able to make a decision. The DAML officer will also consult and can share the information with a number of law enforcement agencies including the police and HMRC.

 The DAML officer must therefore ensure that the sufficient information about the subject of the DAML is present, for example that it includes full names, date of birth, addresses, occupation, etc. That’s why it’s very important to get into a DAML because the DAML is cross-checked against a number of databases.

 In law enforcement they call this washing the data, by washing the data against a range of databases they search for matches against intelligence in other law enforcement databases. This DAML might actually be a crucial piece of information for an existing investigation or may provoke a new investigation.

 So, for this reason the NCA may request additional information from the reporter in order to make an informed decision. This will usually happen via email.

 So, the point I’m trying to make is that DAML does not into a black hole. It goes through a number of processes requiring a lot of analysis for cross matching, both by the NCA and law enforcement.

 So, to summarise when a DAML comes in, it is received and checked to confirm it matches DAML criteria. It is coded so that urgent DAMLs can be fast-tracked and then checked so that they can be washed against law enforcement databases.

 **CW:**  Thanks Tony. What is the DAML criteria, what sort of information is normally required by the NCA in order to make an informed decision on these DAML requests?

 **TF:**  Currently there is three main criteria requirements for DAML to go swiftly through the process. A DAML needs to show clearly why you suspect it is money laundering you’re dealing with.

 It needs a clear description of the property that you know, suspect, or believe to be criminal property.

 It needs a clear description of the prohibited act for which you seek a defence. By prohibited act, the NCA means the proposed activity that you the reporter, is seeking a defence to undertake.

 To be explicit, you must put these three things, these three criteria, into your DAMLs. It’s crucial because the NCA officer dealing with them are not able to interpret, assume or imply or infer anything in disclosures. It has to be written there in black and white for them to read and to make their assessment.

 If a DAML SAR is particularly deficient in any of the above criteria, any of the criteria I’ve mentioned, it will be closed without further notice.

 In some cases, for minor omissions the NCA will make contact usually by email to ask you to clarify your information. A response to such clarification requests for information is usually required within 48 hours. If a response is not received within the stated timeframe that case may be closed down.

 **CW:**  Thank you Tony. We are often asked what constitutes suspicion. So, what is the threshold for suspicion?

 **TF:**  Well the first point I’d like to make is that it’s always a matter for a reporter to decide if they have sufficient suspicion to make a SAR. Some SAR reporters seek independent legal advice on a case-by-case basis relating to actual threshold for their suspicion.

 It must be made clear that the National Crime Agency are unable to provide any advice as to when a reporter should submit a SAR or DAML beyond what the Proceeds of Crime Act and the Money Laundering Regulations dictate.

 Unfortunately, suspicion is not defined in legislation. Some reporters reflect upon the stated case R v Da Silva. Here the appeal court give a good definition of suspicion of money laundering and they said it was a possibility, which is more than fanciful.

 They stated a vague feeling of unease would not be enough for raising suspicion. It also suggested that there does not have to be any substantial evidence.

 Some reporters interpret this as meaning there is no requirement for a physical evidence such as DNA or fingerprints, or direct witness testimony. The circumstances can speak for themselves and a number of unusual facts or behaviours could add up to form reasonable suspicion.

 Some SAR reporters feel the threshold for suspicion under the Proceeds of Crime Act is genuinely considered to be low.

 Some commentators suggest the test of reasonable grounds is an objective test, so the test in simple terms is would an average person seeing these circumstances suspect money laundering is taking place? If yes, they might conclude a SAR is therefore required.

 I am aware one court case when a court indicated the threshold had been passed. It’s a stated case R v Griffiths and Pattison in 2006 and this is where a conveyer solicitor was found guilty of failing to make a SAR under section 330. The prosecution argued that a conveyer solicitor closed his eyes to the obvious. The solicitor was convicted and sentenced to 15 months imprisonment.

 What he had done was that he had significantly undervalued the purchase of a property. He purchased a purchased a property valued at more than £150,000 and he bought it for £43,000. In other words, he bought it for a third of the actual real value.

 At the appeal court, they said that all professionals involved in financial transactions had an absolute obligation to observe scrupulously legislation and they will face the inevitable penalty if they don’t follow those regulations and legislation to the book. So, this case in 2006 makes it clear that there are big risks to reporters if they do not submit SARs or DAMLs.

 **CW:**  Thanks for that explanation Tony. So, what is meant by the term criminal property?

 **TF:**  Criminal property – this is any property which derives from a criminal act if the alleged offender knows or suspects that it constitutes or represents such a benefit. Criminal property must already be in existence at the time of your disclosure in order for a DAML to be considered.

 **CW:**  Ok so, what is meant by the term prohibited act?

 **TF:**  Claire, the prohibited act is the most poorly understood elements required by the National Crime Agency to make an informed decision. When discussing a prohibited act, the NCA refers to the proposed activity that you, the reporter, are seeking a defence to undertake. The NCA cannot ordinarily consider prohibited acts which are to the future and specified.

 **CW:**  Ok so, what is meant by the term prohibited act?

 **TF:**  Claire, the prohibited act is the most poorly understood elements required by the National Crime Agency to make an informed decision. When discussing a prohibited act, the NCA refers to the proposed activity that you, the reporter, are seeking a defence to undertake. The NCA cannot ordinarily consider prohibited acts which are to the future and specified.

 This is shown as an example from the following phrase, initially stated your DAML:

 “I seek a defence to transfer the closing balance of £5,000 of the customer’s casino accounts to the bank accounts of high street, bank account number, sort code, etc.”

 Here that’s clearly showing that could be that that’s a good example. Here the transfer of funds is actually prohibited act that should taken out by reporter.

 In requesting details of the prohibited act, the NCA does not mean its suspected criminality being undertaken by the subject, sometimes that’s called the predicate offence, it doesn’t mean that. It doesn’t mean a particular section under POCA for which the reporter is seeking a defence.

 You have got to say in words what is it you want to do, what is you actually want to do. A general statement such as “the prohibited act for which we seek a defence is money laundering” is what you need to put.

 So, put in your DAMLs “we wish to carry out the following act” and then state exactly what it is you want to do. I’ll put some examples of in a slide and you’ll be able to see them explicitly.

 **CW:**  Thanks Tony, I think those examples make it clear what the NCA are looking for regarding the prohibited act, moving on to some other definitions now. What is meant by the notice period and the moratorium period?

 **TF:**  The Notice Period is the statutory seven working day period in which the NCA has time to make a decision. The day the disclosure is submitted is considered to be day 0. Should your request for a DAML be refused the NCA will notify you via phone call and email.

 The moratorium period then begins with a day of a notification of refusal being issued between day 1 of the moratorium period.

 The moratorium period extends to 31 calendar days following the notice of refusal. During this time law enforcement will be working to take positive enforcement action against a criminal property you have identified.

 Please note there has been some recent changes in the Criminal Finance Act 2017 that also allow law enforcement to apply to a Crown Court for an extension to the moratorium period beyond 31 days.

 I suggest you consult lawyers, independent legal advice, or industry specific advisors for guidance on how to manage the Criminal Finance Act 2017. You’ll be able to get full details on how to manage that situation from those advisors.

 **CW:**  Thanks Tony. So, the reporter gets a defence from the NCA, a grant letter, what does that mean? Does a DAML constitute clearance or permission so that the reporter can continue acting or to proceed in general?

 **TF:**  Claire, in capital letters no, a big no. It solely provides a defence to a principle money laundering offence should you decide to carry out the planned activity.

 Other factors such as wider legal restorations, regulations, regulatory situations, and ethical obligations might also be considered when you decide whether or not you continue with that activity.

 A DAML does not provide any form of clearance, permission or authority to undertake the specific activity, and it’s important, a DAML being granted does not oblige or mandate the reporter to proceed with the proposed activity or imply legitimacy of the funds in question.

 It is not for the NCA to advise whether a reporter should continue acting for a client; this is a business decision for a reporter to make based on their own risk appetite.

 **CW:**  Thank you Tony, moving on now. Can a reporter seek a DAML for activity where they believe that a property will become criminal once the activity, they are requesting a defence for has actually taken place?

 **TF:**  Again no. Technically it’s criminal property at the time of DAML disclosure, so this would be seeking a defence to carry out criminal conduct. There is no provision to permit this under the Proceeds of Crime Act. Any such conduct would, by its nature, likely be criminal and a reporter should refuse to act.

 This is made clear in a particular stated case R v Geary where it was confirmed that the criminal property must exist at the time of the disclosure in order for the NCA to make and consider a decision.

 The NCA will therefore be unable to make a decision on cases where there is not, is not, currently existing criminal property for the purposes of Proceeds of Crime Act. In such cases I’d advise that the reporter should seek independent legal advice if they are unsure on this point of law.

 **CW:**  Ok, thank you Tony. Can reporters seek a DAML for an act they have already undertaken, or can they seek a DAML retrospectively?

 **TF:**  In general no. The NCA is only normally able to consider a decision on specified activity which is yet to occur. Retrospective defences are not normally given. The reporter should seek legal advice if they are unsure on part of law.

 **CW:**  Tony, should reporters submit a DAML to report a crime or to report about potential vulnerable people?

 **TF:**  I’ll be clear on this point Claire; you cannot report or register a crime by using a SAR. A SAR is reporting suspicions of money laundering and terrorist financing only. You have to report crimes alongside the SAR.

 My advice in these circumstances would be to seek guidance for some of the reports we’ve got on our NCA website. There’s a good report there called “SARs activity report, glossary code and reporting routes”. It was published on 16th of January 2017. This can be found on the NCA website and gives you all the relevant information.

 But to sort of paraphrase the guidance today if you suspect money laundering or terrorist financing you must submit a SAR to the NCA. If at the same time you think you are dealing with a life-threatening situation or a situation where you think would normally ring 999 then make the call and report that crime or incidence.

 Contacting 999 or contacting the appropriate agency by other means has to be your first priority. If you are in any doubt, should I ring 999, think “what would an average person and what would an average person think necessary?”

 If the answer is, they would probably ring 999, then ring 999 or the appropriate agency. Keep a record of the officer or person you spoke to and then record that in your SAR.

 There are some good examples of this in the guidance document on the NCA website, again it is called “SARs activity report, glossary code and reporting routes”. It was made on the 16th of January 2017.

 **CW:**  Thanks Tony. So, can reporters decide to withdraw a DAML request?

 **TF:**  Yes, they can, only within the notice period where the funds subject to disclosure remain under the control of the reporter and prior to any decision being communicated by the NCA. For instance, if the planned activity is no longer to go ahead. However, the SAR itself will not be removed from the system.

 If a reporter no longer wishes the NCA to consider it’s request for a DAML then a request can be made but it must be made in writing and it must be put in email, and the email address is  [daml@nca.xgsi.gov.uk](mailto:daml@nca.xgsi.gov.uk)  . So, you must put it in writing, and you must put it in an email. The NCA will retain the information and it might be used for intelligence purposes.

 **CW:**  Thanks Tony. Next question we have; can reports discuss the submission of their SAR with anyone?

 **TF:**  Simply put you should not discuss the fact of making a SAR with anyone if that risks prejudice of any investigation.

 Once a SAR has been submitted, all reporters should be mindful of the offences under the Proceeds of Crime Act and they all relate to a phrase called “tipping off”, and they are section 333a and section 342. It’s all about whether or not you are going to prejudice an investigation.

 There are however some exceptions to this rule. I suggest you get legal advice on this matter and if you look under section 33b or section 33c or 33d, the Proceeds of Crime Act you will see what those exceptions are, but I must stress I’d always advice seek independent legal advice on point.

 **CW:**  Ok. So, a reporter receives a DAML from the NC, can they proceed?

 **TF:**  It’s a matter of each reporter to determine whether or not they should proceed, taking into account what I mentioned earlier on regarding the ethical, legal, and regulatory obligations, as well as other commercial considerations.

 You should consider your next steps carefully and should not take the NCA’s granted letter as a ‘permission to proceed’. You have a defence to specific offences in Proceeds of Crime Act but not to any other criminal offences, for example you’ve got no defence to anything in relation to fraud, or in relation to bribery, or in relation to the Money Laundering Regulations 2017.

 **CW:**  Thanks Tony. So, moving on, a DAML has been refused; what should the reporter do now?

 **TF:**  Well that’s when the moratorium kicks in. The Moratorium Period now starts and during this period, a bit similar to the Notice Period, you should not carry out the act that is the subject of your DAML request.

 It is likely that you will be contacted by a law enforcement investigation team who may wish to obtain further information to inform any action they may take.

 Please keep the NCA informed if refusal to provide a DAML causes serious issues, such as any threat of litigation or any significant financial loss, or any significant threat to life.

 **CW:**  I see, ok thank you Tony. From an administration point of view and getting correct information to the right people, obviously it is important to get a refusal DAML to the right person as soon as possible.

 I guess the reporters correct contact details are imperative, how can reporters update their contact details?

 **TF:**  That’s a very good point Claire, and I must stress it’s very important that the NCA has an up-to-date contact list for the firms disclosing SARs. If a simple contact update is required, then contact SAR Online team and they will be able to assist.

 A full change in Money Laundering Reporting Officer details will require the reporter to re-register via the SAR Online, so if it is a significant change, you must re-register via SAR Online.

 Again, a link on how you can do this can be found on the NCA website.

 **CW:**  Thanks for that Tony. So, can reports talk to police or other law enforcement regarding their DAML disclosures?

 **TF:**  That’s a good question and we get that asked quite a lot. The NCA may refer your SAR or DAML to the police or other law enforcement bodies as part of the natural DAML process.

 Such law enforcement agencies may contact you for further information or discuss the circumstances of your disclosure in more detail.

 If you are contacted by the police or other law enforcement we recommend that firstly you verify they are and that you make sure they are the people that you can talk to, for instance you might consider ringing them back via the force or agency switchboard.

 SAR intelligence can only be shared with certain accredited individuals within law enforcement, normally financial investigators, or financial intelligence officers and so the individuals contacting you should hold one of those accreditations.

 You should not assume that all law enforcement officers should be privy to your SAR information.

 **CW:**  Ok so to sum up Tony, where can the viewers of this video get written guidance on DAMLs?

 **TF:**  Well there’s lots of information on the NCA website, and if you go to the NCA website there’s a lot of documents you can use with hyperlinks and useful contact numbers.

 One important document that I’d recommend that you read is a document called the “DAML FAQ” which we published in May 2018. If you google “DAML FAQ” it will take you straight to that document.

 In relation to making DAMLs that’s very, very good but I’ll leave some contact numbers and some signposts of useful websites in a slide at the end of this presentation.

 **CW:**  Ok thanks Tony. So, to conclude, thank you very much for watching this video today about how to submit DAML SARs.

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 Last updated: 23 November 2020

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1. Qualified persons and personal licences

1. [1.1.1.  Qualified persons – qualifying position](/licensees-and-businesses/lccp/condition/1-1-1-qualified-persons-qualifying-position)
2. [1.1.2.  Qualified persons – tracks](/licensees-and-businesses/lccp/condition/1-1-2-qualified-persons-tracks)


1. [1.2.1.  Specified management offices – personal management licences](/licensees-and-businesses/lccp/condition/1-2-1-specified-management-offices-personal-management-licences)
2. [1.2.2.  Specified management offices – casino personal functional licences](/licensees-and-businesses/lccp/condition/1-2-2-specified-management-offices-casino-personal-functional-licences)
3. [1.2.3.  Specified management offices – lottery personal management licences](/licensees-and-businesses/lccp/condition/1-2-3-specified-management-offices-lottery-personal-management-licences)


2. Technical standards, equipment specifications, remote gambling equipment and gambling software

1. [2.1.1.  Access to (and provision of data from) key equipment](/licensees-and-businesses/lccp/condition/2-1-1-access-to-and-provision-of-data-from-key-equipment)


1. [2.2.1.  Gambling software](/licensees-and-businesses/lccp/condition/2-2-1-gambling-software)


2.3. Technical standards and equipment specifications

1. [2.3.1.  Technical standards](/licensees-and-businesses/lccp/condition/2-3-1-technical-standards)
2. [2.3.2.  Bingo equipment specifications](/licensees-and-businesses/lccp/condition/2-3-2-bingo-equipment-specifications)
3. [2.3.3.  Casino equipment specifications](/licensees-and-businesses/lccp/condition/2-3-3-casino-equipment-specifications)


3. Peer to peer gaming, other networks and hosting

3.1. Peer to peer gaming, other networks and hosting

1. [3.1.1.  Peer to peer gaming](/licensees-and-businesses/lccp/condition/3-1-1-peer-to-peer-gaming)
2. [3.1.2.  Other networks](/licensees-and-businesses/lccp/condition/3-1-2-other-networks)
3. [3.1.3.  Hosting](/licensees-and-businesses/lccp/condition/3-1-3-hosting)


1. [4.1.1.  Segregation of funds](/licensees-and-businesses/lccp/condition/4-1-1-segregation-of-funds)


1. [4.2.1.  Disclosure to customers](/licensees-and-businesses/lccp/condition/4-2-1-disclosure-to-customers)


5.1. Cash and cash equivalents, payment methods and services

1. [5.1.1.  Cash and cash equivalents](/licensees-and-businesses/lccp/condition/5-1-1-cash-and-cash-equivalents)
2. [5.1.2.  Payment methods services](/licensees-and-businesses/lccp/condition/5-1-2-payment-methods-services)


6. Provision of credit by licensees and the use of credit cards

6.1 . Provision of credit by licensees and the use of credit cards

1. [6.1.1.  Provision of credit](/licensees-and-businesses/lccp/condition/6-1-1-provision-of-credit)
2. [6.1.2.  Use of credit cards](/licensees-and-businesses/lccp/condition/6-1-2-use-of-credit-cards)


7.1. Fair and transparent terms and practices

1. [7.1.1.  Fair and transparent terms and practices](/licensees-and-businesses/lccp/condition/7-1-1-fair-and-transparent-terms-and-practices)


9. Types and rules of casino and other games

1. [9.1.1 .  Rules of casino games](/licensees-and-businesses/lccp/condition/9-1-1-rules-of-casino-games)
2. [9.1.2.  Prohibited bingo prize games](/licensees-and-businesses/lccp/condition/9-1-2-prohibited-bingo-prize-games)


1. [10.1.1.  Tipping – personal licence holders](/licensees-and-businesses/lccp/condition/10-1-1-tipping-personal-licence-holders)


1.1 . Lotteries – societies and local authorities

1. [11.1.1.  Lotteries – societies and local authorities](/licensees-and-businesses/lccp/condition/11-1-1-lotteries-societies-and-local-authorities)


1. [11.2.1.  Lotteries – managers](/licensees-and-businesses/lccp/condition/11-2-1-lotteries-managers)


12.1 . Prevention of money laundering and terrorist financing

1. [12.1.1.  Anti-money laundering - Prevention of money laundering and terrorist financing](/licensees-and-businesses/lccp/condition/12-1-1-anti-money-laundering-prevention-of-money-laundering-and-terrorist)
2. [12.1.2.  Anti-money laundering - Measures for operators based in foreign jurisdictions](/licensees-and-businesses/lccp/condition/12-1-2-anti-money-laundering-measures-for-operators-based-in-foreign)


1. [13.1.1.  Pool betting](/licensees-and-businesses/lccp/condition/13-1-1-pool-betting)
2. [13.1.2.  Pool betting – football pools](/licensees-and-businesses/lccp/condition/13-1-2-pool-betting-football-pools)
3. [13.1.3.  Pool betting – annual accounts](/licensees-and-businesses/lccp/condition/13-1-3-pool-betting-annual-accounts)


1. [14.1.1.  Access to premises](/licensees-and-businesses/lccp/condition/14-1-1-access-to-premises)


1. [15.1.1.  Reporting suspicion of offences etc – non-betting licences](/licensees-and-businesses/lccp/condition/15-1-1-reporting-suspicion-of-offences-etc-non-betting-licences)
2. [15.1.2.  Reporting suspicion of offences etc – betting licences](/licensees-and-businesses/lccp/condition/15-1-2-reporting-suspicion-of-offences-etc-betting-licences)
3. [15.1.3.  Reporting of systematic or organised money lending](/licensees-and-businesses/lccp/condition/15-1-3-reporting-of-systematic-or-organised-money-lending)


15.2 . Reporting key events and other reportable events

1. [15.2.1.  Reporting key events](/licensees-and-businesses/lccp/condition/15-2-1-reporting-key-events)
2. [15.2.2.  Other reportable events](/licensees-and-businesses/lccp/condition/15-2-2-other-reportable-events)
3. [15.2.3.  Other reportable events – money laundering, terrorist financing, etc](/licensees-and-businesses/lccp/condition/15-2-3-other-reportable-events-money-laundering-terrorist-financing-etc)


1. [15.3.1.  General and regulatory returns](/licensees-and-businesses/lccp/condition/15-3-1-general-and-regulatory-returns)


16. Responsible placement of digital adverts

16.1. Responsible placement of digital adverts

1. [16.1.1.  Responsible placement of digital adverts](/licensees-and-businesses/lccp/condition/16-1-1-responsible-placement-of-digital-adverts)


1. [17.1.1.  Customer identity verification](/licensees-and-businesses/lccp/condition/17-1-1-customer-identity-verification)


1.1. Cooperation and responsibility for third parties

1. [1.1.1.  Cooperation with the Commission](/licensees-and-businesses/lccp/condition/1-1-1-cooperation-with-the-commission)
2. [1.1.2.  Responsibility for third parties – all licences](/licensees-and-businesses/lccp/condition/1-1-2-responsibility-for-third-parties-all-licences)
3. [1.1.3.  Responsibility for third parties – remote](/licensees-and-businesses/lccp/condition/1-1-3-responsibility-for-third-parties-remote)


1. [2.1.1.  Anti-money laundering – casino](/licensees-and-businesses/lccp/condition/2-1-1-anti-money-laundering-casino)
2. [2.1.2.  Anti-money laundering – other than casino](/licensees-and-businesses/lccp/condition/2-1-2-anti-money-laundering-other-than-casino)


3. Protection of children and other vulnerable persons

1. [3.1.1.  Combating problem gambling](/licensees-and-businesses/lccp/condition/3-1-1-combating-problem-gambling)


3.2 . Access to gambling by children and young persons

1. [3.2.1.  Casinos SR code](/licensees-and-businesses/lccp/condition/3-2-1-casinos-sr-code)
2. [3.2.2.  Casinos ordinary code](/licensees-and-businesses/lccp/condition/3-2-2-casinos-ordinary-code)
3. [3.2.3.  AGC SR code](/licensees-and-businesses/lccp/condition/3-2-3-agc-sr-code)
4. [3.2.4.  AGC ordinary code](/licensees-and-businesses/lccp/condition/3-2-4-agc-ordinary-code)
5. [3.2.5.  Bingo and FEC SR code](/licensees-and-businesses/lccp/condition/3-2-5-bingo-and-fec-sr-code)
6. [3.2.6.  Bingo and FEC ordinary code](/licensees-and-businesses/lccp/condition/3-2-6-bingo-and-fec-ordinary-code)
7. [3.2.7.  Betting SR code](/licensees-and-businesses/lccp/condition/3-2-7-betting-sr-code)
8. [3.2.8.  Betting ordinary code](/licensees-and-businesses/lccp/condition/3-2-8-betting-ordinary-code)
9. [3.2.9.  Lottery SR code](/licensees-and-businesses/lccp/condition/3-2-9-lottery-sr-code)
10. [3.2.10.  Lottery ordinary code](/licensees-and-businesses/lccp/condition/3-2-10-lottery-ordinary-code)
11. [3.2.11.  Remote SR code](/licensees-and-businesses/lccp/condition/3-2-11-remote-sr-code)
12. [3.2.12.  Remote ordinary code](/licensees-and-businesses/lccp/condition/3-2-12-remote-ordinary-code)
13. [3.2.13.  Remote lottery SR code](/licensees-and-businesses/lccp/condition/3-2-13-remote-lottery-sr-code)
14. [3.2.14.  Remote lottery ordinary code](/licensees-and-businesses/lccp/condition/3-2-14-remote-lottery-ordinary-code)


3.3 . Gambling management tools and responsible gambling management information

1. [3.3.1.  Responsible gambling information](/licensees-and-businesses/lccp/condition/3-3-1-responsible-gambling-information)
2. [3.3.2.  Foreign languages](/licensees-and-businesses/lccp/condition/3-3-2-foreign-languages)
3. [3.3.3.  Betting B2 - time and monetary thresholds](/licensees-and-businesses/lccp/condition/3-3-3-betting-b2-time-and-monetary-thresholds)
4. [3.3.4.  Remote time-out facility](/licensees-and-businesses/lccp/condition/3-3-4-remote-time-out-facility)


1. [3.4.1.  Premises-based customer interaction](/licensees-and-businesses/lccp/condition/3-4-1-customer-interaction)
2. [3.4.2.  Customer interaction – lotteries](/licensees-and-businesses/lccp/condition/3-4-2-customer-interaction-lotteries)
3. [3.4.3.  Remote customer interaction](/licensees-and-businesses/lccp/condition/3-4-3-remote-customer-interaction)


1. [3.5.1.  Self exclusion – Non-remote and trading rooms SR code](/licensees-and-businesses/lccp/condition/3-5-1-non-remote-and-trading-rooms-sr-code)
2. [3.5.2.  Self-exclusion – non-remote ordinary code](/licensees-and-businesses/lccp/condition/3-5-2-non-remote-ordinary-code)
3. [3.5.3.  Self-exclusion – remote SR code](/licensees-and-businesses/lccp/condition/3-5-3-remote-sr-code)
4. [3.5.4.  Self-exclusion – Remote ordinary code](/licensees-and-businesses/lccp/condition/3-5-4-remote-ordinary-code)
5. [3.5.5.  Remote multi-operator SR code](/licensees-and-businesses/lccp/condition/3-5-5-remote-multi-operator-sr-code)
6. [3.5.6.  Multi-operator non-remote SR code](/licensees-and-businesses/lccp/condition/3-5-6-multi-operator-non-remote-sr-code)
7. [3.5.7.  Multi-operator non-remote ordinary code](/licensees-and-businesses/lccp/condition/3-5-7-multi-operator-non-remote-ordinary-code)
8. [3.5.8.  Non-remote lottery SR code](/licensees-and-businesses/lccp/condition/3-5-8-non-remote-lottery-sr-code)


3.6 . Employment of children and young persons

1. [3.6.1.  Lottery and pool betting](/licensees-and-businesses/lccp/condition/3-6-1-lottery-and-pool-betting)
2. [3.6.2.  Bingo](/licensees-and-businesses/lccp/condition/3-6-2-bingo)
3. [3.6.3.  Casino](/licensees-and-businesses/lccp/condition/3-6-3-casino)
4. [3.6.4.  Betting](/licensees-and-businesses/lccp/condition/3-6-4-betting)
5. [3.6.5.  AGCs](/licensees-and-businesses/lccp/condition/3-6-5-agcs)
6. [3.6.6.  FECs](/licensees-and-businesses/lccp/condition/3-6-6-fecs)
7. [3.6.7.  Remote](/licensees-and-businesses/lccp/condition/3-6-7-remote)
8. [3.6.8.  Remote pool betting](/licensees-and-businesses/lccp/condition/3-6-8-remote-pool-betting)


1. [3.7.1 .  Provision of credit](/licensees-and-businesses/lccp/condition/3-7-1-provision-of-credit)


1. [3.8.1.  Money-lending – casinos](/licensees-and-businesses/lccp/condition/3-8-1-money-lending-casinos)
2. [3.8.2.  Money-lending – other than casinos](/licensees-and-businesses/lccp/condition/3-8-2-money-lending-other-than-casinos)


3.9. Identification of individual customers

1. [3.9.1 .  Identification of individual customers - remote](/licensees-and-businesses/lccp/condition/3-9-1-identification-of-individual-customers-remote)


1. [4.1.1.  Fair terms](/licensees-and-businesses/lccp/condition/4-1-1-fair-terms)


4.2. Display of rules and supervision of games

1. [4.2.1.  Display of rules – casino](/licensees-and-businesses/lccp/condition/4-2-1-casino)
2. [4.2.2.  Display of rules - bingo](/licensees-and-businesses/lccp/condition/4-2-2-bingo)
3. [4.2.3.  Display of rules – remote SR code](/licensees-and-businesses/lccp/condition/4-2-3-remote-sr-code)
4. [4.2.4.  Remote ordinary code](/licensees-and-businesses/lccp/condition/4-2-4-remote-ordinary-code)
5. [4.2.5.  Supervision of games](/licensees-and-businesses/lccp/condition/4-2-5-supervision-of-games)
6. [4.2.6.  Display of rules – betting](/licensees-and-businesses/lccp/condition/4-2-6-display-of-rules-betting)
7. [4.2.7.  On-course betting](/licensees-and-businesses/lccp/condition/4-2-7-on-course-betting)
8. [4.2.8.  Betting integrity](/licensees-and-businesses/lccp/condition/4-2-8-betting-integrity)
9. [4.2.9.  Display of rules – pool betting](/licensees-and-businesses/lccp/condition/4-2-9-display-of-rules-pool-betting)
10. [4.2.10.  Pool betting](/licensees-and-businesses/lccp/condition/4-2-10-pool-betting)


1. [4.3.1.  Publication of percentage of lottery proceeds returned to the purposes of the society or local authority](/licensees-and-businesses/lccp/condition/4-3-1-publication-of-percentage-of-lottery-proceeds-returned-to-the-purposes)
2. [4.3.2.  Marketing of all lotteries conducted under a single brand (branded lotteries)](/licensees-and-businesses/lccp/condition/4-3-2-marketing-of-all-lotteries-conducted-under-a-single-brand-branded)
3. [4.3.3.  Lotteries – Information to consumers](/licensees-and-businesses/lccp/condition/4-3-3-lotteries-information-to-consumers)


1. [5.1.1.  Rewards and bonuses – SR code](/licensees-and-businesses/lccp/condition/5-1-1-sr-code)
2. [5.1.2.  Proportionate rewards](/licensees-and-businesses/lccp/condition/5-1-2-proportionate-rewards)
3. [5.1.3.  Alcoholic drinks](/licensees-and-businesses/lccp/condition/5-1-3-alcoholic-drinks)
4. [5.1.4.  Promotion by agents](/licensees-and-businesses/lccp/condition/5-1-4-promotion-by-agents)
5. [5.1.5.  Mailing of lottery tickets](/licensees-and-businesses/lccp/condition/5-1-5-mailing-of-lottery-tickets)
6. [5.1.6.  Compliance with advertising codes](/licensees-and-businesses/lccp/condition/5-1-6-compliance-with-advertising-codes)
7. [5.1.7 .  Compliance with advertising codes (lotteries)](/licensees-and-businesses/lccp/condition/5-1-7-compliance-with-advertising-codes-lotteries)
8. [5.1.8.  Compliance with industry advertising codes](/licensees-and-businesses/lccp/condition/5-1-8-compliance-with-industry-advertising-codes)
9. [5.1.9.  Other marketing requirements](/licensees-and-businesses/lccp/condition/5-1-9-other-marketing-requirements)
10. [5.1.10.  Online marketing in proximity to information on responsible gambling](/licensees-and-businesses/lccp/condition/5-1-10-online-marketing-in-proximity-to-information-on-responsible-gambling)
11. [5.1.11.  Direct electronic marketing consent](/licensees-and-businesses/lccp/condition/5-1-11-direct-electronic-marketing-consent)


1. [6.1.1.  Complaints and disputes](/licensees-and-businesses/lccp/condition/6-1-1-complaints-and-disputes)


1. [7.1.1.  Gambling staff – casinos](/licensees-and-businesses/lccp/condition/7-1-1-gambling-staff-casinos)
2. [7.1.2.  Responsible gambling information for staff](/licensees-and-businesses/lccp/condition/7-1-2-responsible-gambling-information-for-staff)
3. [7.1.3.  Gambling staff and irregular betting](/licensees-and-businesses/lccp/condition/7-1-3-gambling-staff-and-irregular-betting)


1. [8.1.1.  Ordinary code](/licensees-and-businesses/lccp/condition/8-1-1-information-requirements-ordinary-code)
2. [8.1.2.  Provision of information in respect of cheating](/licensees-and-businesses/lccp/condition/8-1-2-provision-of-information-in-respect-of-cheating)


9.1. Gaming machines in gambling premises

1. [9.1.1.  Gaming machines in gambling premises – betting](/licensees-and-businesses/lccp/condition/9-1-1-gaming-machines-in-gambling-premises-betting)
2. [9.1.2.  Bingo](/licensees-and-businesses/lccp/condition/9-1-2-bingo)
3. [9.1.3.  Casino](/licensees-and-businesses/lccp/condition/9-1-3-casino)


1. [10.1.1.  Assessing local risk](/licensees-and-businesses/lccp/condition/10-1-1-assessing-local-risk)
2. [10.1.2.  Sharing local risk assessments](/licensees-and-businesses/lccp/condition/10-1-2-sharing-local-risk-assessments)


 Applies to:

 All personal licence holders

1. Personal licence holders must take all reasonable steps to ensure that the way in which they carry out their responsibilities in relation to licensed activities does not place the holder of the operating or any relevant premises licence in breach of their licence conditions.
2. Personal licence holders must keep themselves informed of developments in gambling legislation, codes of practice and any Commission guidance (whether issued on the Commission’s website or communicated directly to licence holders) relevant to their role. Holders of personal functional licences must keep their technical competence in respect of their licensed activities up to date.
3. Personal licence holders must notify the Commission of the occurrence of any of the following key events within 10 working days after the licensee becomes aware of the event’s occurrence  [1](#1-1)  :

	1. their subjection to any criminal investigation which is listed under Schedule 7 Relevant Offences of the Gambling Act 2005;
	2. their conviction of any offence listed under Schedule 7 – Relevant Offences of the Gambling Act 2005;
	3. any current or pending investigation by a professional, statutory, regulatory or government body in Great Britain or abroad;
	4. the imposition of any sanction or penalty against them following an investigation by any professional, statutory, regulatory or government body in Great Britain or abroad;
	5. the imposition of a disciplinary sanction against them, including dismissal, for gross misconduct;
	6. their resignation from a position for which a personal licence is required following commencement of disciplinary proceedings in respect of gross misconduct;
	7. their disqualification from acting as a company director;
	8. the presentation of a petition for their bankruptcy or sequestration or their entering into an individual voluntary agreement;
	9. a change in their name or address.

>  Read additional  [guidance on the information requirements](/guidance/lccp-Information-requirements/guidance-to-operators-on-display-of-licensed-status-personal-licence-key-events-general)  contained within this section.
>
>

##  References

 Services specific to this condition are:

* [Manage and maintain your personal licence](/service/manage-and-maintain-your-personal-licence)


1  These matters are to be reported to us online via the  [‘Manage and maintain your licence’](/service/manage-and-maintain-your-personal-licence)  service on our website.


>  This is an HTML version of this guidance. You can also view or download the  [original Information to lottery players: proceeds and prizes (PDF)](#1gHGAsyUhJAjQ79Qp4oDNw)  published in April 2020.
>
>


 This provides guidance to licence holders on the implementation of  [social responsibility (SR) code provision 4.3.3](/licensees-and-businesses/lccp/condition/4-3-3-lotteries-information-to-consumers)  set out in our  [Licence conditions and codes of practice (LCCP)](/licensees-and-businesses/lccp/online)  .

 It applies to all lottery licence holders – society lotteries, local authority lotteries and external lottery managers (ELMs), and to all draws taking place from 29 July 2020. It sets out the information which should be provided to consumers before they purchase a lottery ticket. This includes information about:

* how and where proceeds are used
* the likelihood of winning a prize and how prizes are allocated

 It also provides guidance about how to make this information available.

 This guidance assists licensees with details about how to comply with the LCCP and the wider legal requirements. It is intended to allow licensees flexibility as to how they comply whilst explaining the minimum we expect you to do in order to achieve compliance with SR code 4.3.3.

>  This guidance is not a substitute for the LCCP or independent legal advice. Anyone requiring clarification on the regulatory issues contained in this document should seek their own independent legal advice.
>
>

 In this guidance, the word 'must' denotes a legal obligation, while the word 'should' is a recommendation of good practice, and is the standard that the Gambling Commission (the Commission) expects licensees to adopt and evidence. The Commission will expect licensees to be able to explain the reasons for any departures from that standard.

 The Commission has a duty to permit gambling if we think it is reasonably consistent with the three licensing objectives set out in the  [Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/contents)  (the Act). These objectives are to:

* keep gambling free from crime and from being associated with crime
* ensure that gambling is fair and open
* protect children and vulnerable people from being harmed or exploited by gambling.

 It is important to provide consumers with clear and easily accessible information to help them make an informed decision whether to gamble. Licensees should provide effective, transparent and fair information about all lottery products and schemes. This is an important part of achieving the second licensing objective.

 This guidance may be amended periodically to take account of what we learn from research with licence holders and gambling consumers about emerging trends in lottery products and player participation, or of changes to legislation. Where proposed amendments are minor, we will consult informally, for example, through industry trade bodies and with consumer groups. For more substantial changes, we will consult more formally.

##  Information about prizes

##  What we want to achieve

##  What we expect licensees to do

##  Information on how proceeds are used

##  What we want to achieve

##  What we expect licensees to do

##  Information about grants

##  How information should be made available

##  Files


We want to ensure that consumers are empowered to make informed choices about gambling. Specifically, that before committing to gamble, they understand the prizes on offer, how they might win them and the likelihood of them doing so.


 Lottery licensees must make available information to consumers about prizes before they purchase a ticket. As a minimum, this should include:

* a description of the way in which winners are determined and prizes allocated
* the potential prizes available
* the likelihood of winning a prize.

 For example, this could include, but is not limited to:

* clear descriptions of what constitutes a winning outcome
* information about rollovers and the way in which the rollover operates
* information about the amounts that players may potentially win, for example in the form of pay-tables or by showing the odds for outcomes (such as matching 3, 4 or 5 numbers)
* how winners are determined, for example, how the random number generator (RNG) works.

 If it is not possible to determine the exact likelihood of winning a prize because it depends on the eventual number of participants, operators should consider how best they can provide a reasonable estimate to consumers. For example, by using data from previous comparable lottery draws to provide information on the likelihood of winning. This can be an estimate based on that data, the average for that type of lottery draw or the actual previous figures.

 Remote lottery licensees (with aggregate annual proceeds exceeding £250,000) are already required to provide information to players on the prizes or payouts available, the way in which winners are determined and their chances of winning a prize, before the customer commits to gamble. Relevant requirements are in  [Remote Technical Standard 3 (RTS3)](/standards/remote-gambling-and-software-technical-standards/rts-3-rules-game-descriptions-and-the-likelihood-of-winning)  .


 We want to ensure that consumers are empowered to make informed choices about gambling. And that consumers and the wider public have a well-informed view of how lotteries use their money to contribute to society.

 Licensees should help consumers understand which good causes are being supported and how much of their money goes to the good cause or elsewhere. Specifically, we want consumers to know or be able to find out:

* how much is returned to the good causes and what good causes they’re supporting
* how much is spent on prizes
* how much is spent on expenses
* if grants are made and information about that process.


###  Breakdown of proceeds and good cause information

 Lottery licensees must provide information about how lottery proceeds are spent. This information should be available to consumers before they purchase a ticket and should include:

* the percentage or amount of the proceeds spent on:
* prizes (including prizes rolled over)
* expenses related to promoting and running the lottery
* the amount applied directly to the purposes of the society or purposes for which the local authority has power to incur expenditure (whichever is relevant) – i.e. the good cause
* the total proceeds from all tickets sold.

 Information provided can be estimated, average or actual percentage/amount (where this is known). Where the actual amounts for that type of lottery draw cannot be determined in advance, licensees should consider how best they can provide a reasonable estimate to consumers.

 For example, through:

* providing details of the actual breakdown of proceeds and ticket sales for the previous calendar year
* where they consider this will be misleading, using previous data to estimate or give an average for that type of lottery draw

 For example, you may provide a breakdown in your solicitation statement for a particular lottery draw, stating that last year you received £XX,XXX in ticket sales and that X% was spent on your good cause, X% on prizes and X% on expenses.

 This is in addition to the current provision in social responsibility code (4.3.1), which requires all society and local authority lottery licensees to publish annually the proportion of total proceeds allocated to the purposes of the society or purposes for which the local authority has power to incur expenditure.

 Licensees currently retain information as set out in  [Condition 11.1.1](/licensees-and-businesses/lccp/condition/11-1-1-lotteries-societies-and-local-authorities)  , which can be used to provide relevant information.

 Information about the promoting society (good cause) must be made available. Lottery licensees are required to identify the promoting society within ticket documentation (licence condition 11.1.1.7b and 11.2.1.7b).  [Social responsibility code 4.3.2](/licensees-and-businesses/lccp/condition/4-3-2-marketing-of-all-lotteries-conducted-under-a-single-brand-branded)  also requires that branded lotteries must ensure that it is clear to consumers (or potential consumers), which society lotteries are being promoted.


 Lottery licensees may use proceeds to fund grants to beneficiaries who meet the aims and objectives of their societies. Where this is the case, information should be available to consumers about how the allocation of grants is determined, including examples of those receiving them.

 For example, you could provide information on your website confirming that other organisations who meet your aims and objectives can apply for funding, that the outcome of those applications is determined by a panel or individual (if that is the case) and give details of organisations you have helped using this process.


How information should be made available

 All reasonable steps should be taken to ensure that the information is understandable, easily accessible and presented through the most appropriate means of reaching the consumer.

 As consumers should be able to access this information before they purchase a ticket, when deciding where to publish it, you should consider the medium through which the gambling is conducted and the way you advertise or promote the lottery.

 For example, this information could be included in marketing communications, advertisements, promotions, the lottery website, ticket documentation, or any other information surrounding the draw, such as the solicitation statement or terms and conditions.

 Where licensees use the internet or mobile sites to promote lotteries, the information should be located from the menu or drop-down list, but consumers should be directed to this by links within the main lottery pages.

 You must ensure that the information you provide is not misleading. Existing LCCP provisions require all lottery licensees to comply with the advertising codes of practice issued by the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP). These advertising codes include rules on misleading advertising.

 Where estimated or average figures are given you should be clear to consumers that this is the case and that the actual figures may vary. Where you expect figures to vary greatly for a draw you should be clear about this and consider whether there is a better way to provide the information. For example, where you hold a bumper raffle and know the breakdown of proceeds is likely to be well outside the annual figures you normally provide. Here you may base the information provided on previous draws of that type, rather than the annual figures you use elsewhere.


 Some files may not be accessible for users of assistive technology. If you require a copy of the file in an accessible format  [contact us](/forms/formatrequest)  with details of what you require. It would help us to know what technology you use and the required format.

 **PDF Files**  Some PDF files cannot be displayed in a browser, you will see a message saying 'Please wait...'. If you see this message, you will need to download the file and open it in  [Adobe Acrobat Reader (opens in a new tab)](https://get.adobe.com/reader/)  .

 [Information to lottery players: proceeds and prizes

 application/pdf PDF 150.7 kB](//assets.ctfassets.net/j16ev64qyf6l/1gHGAsyUhJAjQ79Qp4oDNw/aa170bfdb5a34cb09721fd58f82ec0c5/Society-lotteries-guidance-to-operators.pdf)

---

 Last updated: 7 June 2021

 Show updates to this content  No changes to show.


* [Information to lottery players: proceeds and prizes](#)
* [Information about prizes](#information-about-prizes)
* [Information on how proceeds are used](#information-on-how-proceeds-are-used)
* [How information should be made available](#how-information-should-be-made-available)

 [Print this guide](#)


If you have any concerns regarding match-fixing or the integrity of sports betting, you can contact the SBIU directly at  [sbiu@gamblingcommission.gov.uk](mailto:sbiu@gamblingcommission.gov.uk)


 We want to ensure that customers are confident that they can gamble in an environment that is safe and free of criminal activity. If you suspect suspicious activity, then you can  [report it to us](/contact-us/page/report-something-in-confidence)  .

 [Previous page
 Important documents](/licensees-and-businesses/guide/page/important-documents)

---

 Last updated: 17 May 2021

 Show updates to this content  No changes to show.


 If you hold a Gambling Commission operating or personal licence, you may be asked what your account number is.

 Your account number is the first set of six numbers from your licence.

> ###  Example
>
>  Licence number: 003-123456-N-987654-001
>
>  Your account number is: 123456
>
>

 Licences are made up of 5 sets of characters separated by hyphens:

 3 numbers 6 numbers 1 letter 6 numbers 3 numbers

 In some cases the first set of 3 numbers are ommitted.


 Your account number is also displayed on the  [public register](/public-register)  under the account number header of your licence entry.

---

 Last updated: 26 January 2021

 Show updates to this content  No changes to show.


 You can make most changes online in  [eServices](/service/operator-eservices)  and pay any fees using a credit or debit card (except American Express).

###  Head Office address changes

 Changes to the Head Office and trading names will result in a new licence being issued.

 You can use  [eServices](/service/operator-eservices)  to change your Head Office address. Changes to a Head Office address will result in a new licence being issued.

 Cost: £40 per licence

###  Registered and correspondence address changes

 You can use  [eServices](/service/operator-eservices)  to change your registered and correspondence addresses. Your correspondence address must be based in the United Kingdom. We will use this address to communicate with you. You should only make this change once you have moved address.

 Cost: free

###  Add, change or remove trading names

 You can use  [eServices](/service/operator-eservices)  to add, change or remove your trading name. Any change to a trading name will result in a new licence being issued.

 It is your responsibility to ensure that any proposed domain or trading name is considered socially responsible and is compliant with legislative and regulatory requirements including:

* the  [Licence Conditions and Code of Practice](/licensees-and-businesses/lccp/online)  and any applicable guidance
* the Committees of Advertising Practice (CAP)
* Broadcast of Committees of Advertising Practice (BCAP).

 Trading names also need to be compliant with the  [Companies Act 2006 (opens in new tab)](https://www.legislation.gov.uk/ukpga/2006/46/contents)  .

 Cost: £40 per licence

###  Adding a licensed activity

 You can add new licence activities to your existing licence using  [eServices](/service/operator-eservices)  . However, if you want to add an additional licence, for example if you hold a non-remote operating licence only and are intending to add remote activities, you will need to  [apply for a new operating licence online](/service/apply-for-an-operating-licence)  .

 To add new licence activities to your existing licence, you must provide the following information for both remote and non-remote activities:

* new business plan to explain how the activity will be made available and any staffing changes
* financial forecast for the activity for the first 12 months
* evidence of funding for the activity, for example copy of Loan agreement, evidence of source of funds for investments and bank statements
* amended policy statements that demonstrate how the activity to be added complies with  [Licence Conditions and Codes of Practice](/licensees-and-businesses/lccp/online)
* customer terms and conditions, if applicable.

 If you are adding a remote activity, you must also provide the following:

* remote technical standards and testing strategy policies
* operational model map
* system diagram for the end-to-end process.

 If you are adding  [non-remote general betting limited activity](/licensees-and-businesses/licences-and-fees/non-remote-general-betting-limited-operating-licence)  , you must also provide the following:

* a contract of employment for all staff who will be taking bets
* an Annex A for all staff who will be taking bets.

 Cost: 25 percent of standard licence application fee

###  Removing a licensed activity

 You can remove a licence activity using  [eServices](/service/operator-eservices)  . You do not need to provide any supporting documentation.

 Cost: £40

###  Fee category changes

 You can make fee category changes using  [eServices](/service/operator-eservices)  . For a fee category increase by 1 level only, you do not need to provide any supporting documentation.

 If you need to increase your fee category by 2 or more categories, then you will need to provide the following documents:

* new or updated financial projections
* new or updated business plan
* evidence of how the expansion of the business is funded.

 If you need to decrease your fee category you will need to provide a full explanation of why.

 Cost: £40


 Some files may not be accessible for users of assistive technology. If you require a copy of the file in an accessible format  [contact us](/forms/formatrequest)  with details of what you require. It would help us to know what technology you use and the required format.

 **PDF Files**  Some PDF files cannot be displayed in a browser, you will see a message saying 'Please wait...'. If you see this message, you will need to download the file and open it in  [Adobe Acrobat Reader (opens in a new tab)](https://get.adobe.com/reader/)  .

 [Documents required for Variations

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 Make changes to your operating licence](/licensees-and-businesses/guide/make-changes-to-your-operating-licence)  [Next page
 Changes that cannot be made online](/licensees-and-businesses/guide/page/changes-that-cannot-be-made-online)

---

 Last updated: 30 March 2023

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 Additional information provided relating to the documentation required for:

* adding a licensed activity
* fee category changes
* operating name changes
* adding, changing or removing a licence condition
* Schedule X and Schedule Y changes.


 Under  [Section 102 of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/102)  , a change of corporate control takes place when a person (or other legal entity) either directly or indirectly:

* owns 10 percent or more of the shares
* is entitled to 10 percent or more of the rights to profits/dividends
* has 10 percent or more of the voting power
* is able to exercise significant influence over the management of an existing licensed operator.

>  See  [Section 422 of Financial Services and Markets Act 2000 (FSMA) (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2000/8/section/422)  for the full definition of controller.
>
>

 In summary, it is when there is a new 'controller' of the company. For example, if a major investor joins the company or a new significant member joins a partnership. A person is considered a new controller if they hold:

* 10 percent or more of the shares in a licensed operator or in parent company of a licensed operator
* 10 percent or more of the voting power in a licensed operator or a parent company of a licensed operator
* shares or voting power in a licensed operator or a parent company of a licensed operator as a result of which the person is able to exercise significant influence over the management of a licensed operator.


 The holding of shares or voting power by a person in the licensed operator includes any shares or voting power held by another person if they and the other person are acting together:

* in relation to a licensee with share capital, allotted shares
* in relation to a licensee with capital but no share capital, rights to share in the capital.

 In relation to licensee without capital, interests:

* conferring any rights to share in the profits of the licensee; or liability to contribute to the losses of the licensee
* giving rise to an obligation to contribute to the debts or expenses of the licensee in the event of its winding up (in a licensee with neither share capital nor capital).

###  Voting power is defined by section 422(5) FSMA20000

 (a) it includes in relation to a person (H):

 i. voting power held by a third party with whom H has concluded an agreement, which obliges H and the third party to adopt, by concerted exercise of the voting power they hold, a lasting common policy towards the management of the undertaking in question.

 ii. voting power held by a third party under an agreement concluded with H providing for the temporary transfer for consideration of the voting power in question.

 iii. voting power attaching to shares which are lodged as collateral with H, provided that H controls the voting power and declares an intention to exercise it.

 iv. voting power attaching to shares in which H has a life interest.

 v. voting power which is held, or may be exercised within the meaning of subparagraphs (i) to (iv), by a F2 controlled undertaking of H.

 vi. voting power attaching to shares deposited with H which H has discretion to exercise in the absence of specific instructions from the shareholders.

 vii. voting power held in the name of a third party on behalf of H.

 viii. voting power which H may exercise as a proxy where H has discretion about the exercise of the voting power in the absence of specific instructions from the shareholders.

 (b) in relation to an undertaking which does not have general meetings at which matters are decided by the exercise of voting rights, means the right under the constitution of the undertaking to direct the overall policy of the undertaking or alter the terms of its constitution.

>  If you have any questions as to whether a change of control has taken place, you should seek independent legal advice.
>
>

##  Notify the Commission of a change of corporate control

##  What you need to send us with your application

##  Trusts

##  Trust beneficiaries

##  Trustees

##  Settlor

##  Protector

##  Applications in advance

##  Fees for a change of corporate control application

##  Fees

##  Files


Notify the Commission of a change of corporate control

>  Changes of control must be reported as a  [key event](/licensees-and-businesses/guide/key-events-for-operators)  as soon as possible and not later than within 5 working days.
>
>

 Within 5 weeks of the change occurring you must either surrender the licence or apply for the licence to continue to have effect or it will be revoked.

 If you want to apply for the licence to continue to have effect, you must complete a  [Change of Corporate Control form](#nCJsRldlCoVu39KHX42se)  , and pay the appropriate fee. You must email the completed form and supporting documents to  [licensing@gamblingcommission.gov.uk](mailto:licensing@gamblingcommission.gov.uk)  . Do not post them to us and do not email them to a Licensing team member email address.

 Incoming individuals who have or are expected to become controller of the licensed operator, if not already approved by the Commission will be required to submit an  [Annex A](/licensees-and-businesses/guide/annex-a-declaration)  or  [Personal Management Licence](/licensees-and-businesses/guide/personal-management-licence)  (PML) application.

 Make sure you read the guidance notes on this page before you start to fill out the form.

 Change of corporate control applications typically take around 12 weeks to process, providing full information is submitted.


What you need to send us with your application

Make sure you read the guidance notes for the information you must send in with the application. If any information is missing, it will delay the application.


 The Commission’s application disclosure requirements for Trusts are the same as those for other entity types and/or individuals that are part of a licensee’s ownership structure.

 However, it is important to note that whilst the disclosure requirements set out below are general principles of the information required to support an application, the Commission retains the right to request further information or documents when this is required.

 Where the Trust’s ownership equates to 3 percent or above interest in the licensee, in your application, you must include:

* a copy of the trust deed
* a copy of the letter of wishes
* a copy of the letter of consent from the trustees (i.e. that they have consented to act as trustees).


 We require an Annex A from those beneficiaries whose interest in the Trust equates to a 10 percent or more controlling interest in the applicant and/or licensee. The Annex A must be submitted online through our  [Apply for a personal licence service](/service/apply-for-a-personal-licence)  . If any beneficiary is under 18, then we do not require an Annex A from them.

 If the beneficiary’s interest in the Trust equates to less than 10 percent but 3 percent or more, then we require the name, address, and date of birth of all beneficiaries which should be shown in the trust deed – if not, you must provide this information.


 We require an Annex A from all Trustees where the Trust’s interest in the applicant and/or licensee equates to a 10 percent or more controlling interest in the applicant and/or licensee. The Annex A must be submitted online through our  [Apply for a personal licence service](/service/apply-for-a-personal-licence)  .

 In the case of the Trustee being a company, we require an Annex A from the person or people in that company who have lead responsibility for matters relating to the Trust.

 If the Trust’s interest in the licensee equates to equates to less than 10 percent but 3 percent or more, we require the name, address and date of birth of all Trustees which should be shown in the trust deed – if not, you must provide this information.


We will not usually require an Annex A from the Settlor. We require the name, address and date of birth of the Settlor which should be shown in the trust deed – if not, you must provide this information.


We will not usually require an Annex A from the Protector. We require the name, address and date of birth of the Protector which should be shown in the trust deed – if not, you must provide this information.


[Section 103 of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/103)  provides for this. An application can be made in respect of a person or entity who is expected to become a controller of a company.


Fees for a change of corporate control application

 When submitting the Change of Corporate Control application, you must pay the correct fee for the application at the same time. This can be paid by BACS or Faster Payments. Find out more about  [paying fees](/licensees-and-businesses/page/paying-fees)  . The fee must be paid on the same date you email the application to us.

 You can find out the application fee for your licence by using our  [Fee calculator service](/service/operating-licence-fees-calculator)  .


 Changes and fees |  Change  |  Fee  |
| --- | --- |
|  Due to share fluctuation only (the controller(s) must be known to the Commission, that is, they must hold an operating licence issued by the Commission or be a financial institution that is either regulated by the FCA or which has its registered/head office in an EEA state and is regulated by its home state regulator).  |  £160  |
|  Where the new controller already holds an operating licence  |  25 percent of standard application fee  |
|  Where the new controller is a financial institution that is either regulated by the FCA or which has its registered/head office in an EEA state and is regulated by its home state regulator.  |  25 percent of standard application fee  |
|  Where the new controller does not hold an operating licence  |  75 percent of standard application fee  |
|  New controller in family owned  [small-scale operator](/licensees-and-businesses/guide/small-scale-operator)  and: * the operator is a private limited company
* the operator is and will continue to be a small-scale operator
* all existing shareholders are either the spouse, civil partner, child, parent or sibling of the new controller
* the new controller will not exercise any management function in connection with the gambling activities
* the new controller will not hold a higher percentage of shares in the company than any other shareholder.
 |  £160  |
|  Regulation 34 (2) gives a provision for a reduced fee if a company is being inserted into the group structure and both the below conditions are met: * the new controller is known to the Commission (that is, they hold an operating licence or they are a financial institution regulated in the EEA etc) and
* the new controller is only acquiring 10 percent shares or increasing their shareholding to a 10 percent position and nothing else (i.e. the where the shareholding does not confer any “voting power” as defined in 422 of FSMA).
 |  £160  |


 Some files may not be accessible for users of assistive technology. If you require a copy of the file in an accessible format  [contact us](/forms/formatrequest)  with details of what you require. It would help us to know what technology you use and the required format.

 **PDF Files**  Some PDF files cannot be displayed in a browser, you will see a message saying 'Please wait...'. If you see this message, you will need to download the file and open it in  [Adobe Acrobat Reader (opens in a new tab)](https://get.adobe.com/reader/)  .

 [Change of Corporate Control form

 application/pdf PDF 588.2 kB](//assets.ctfassets.net/j16ev64qyf6l/nCJsRldlCoVu39KHX42se/9e891131ae44aeca37f322dd816e9821/Change_of_Corprate_Control_-_Form.pdf) [Change of Corporate Control guidance notes

 application/pdf PDF 501.2 kB](//assets.ctfassets.net/j16ev64qyf6l/23d7KlCHZwJSrpmI5JgRi/a4d8fb6431fa73461984869747da18fd/Change_of_corporate_control_-_Guidance_Notes.pdf)

---

 Last updated: 23 December 2022

 Show updates to this content  Formatting changes


* [Change of corporate control](#)
* [Notify the Commission of a change of corporate control](#notify-the-commission-of-a-change-of-corporate-control)
* [What you need to send us with your application](#what-you-need-to-send-us-with-your-application)
* [Fees for a change of corporate control application](#fees-for-a-change-of-corporate-control-application)

 [Print this guide](#)


 There are many reasons why an operator might need to change their legal entity type. In a partnership of two people one person may decide to retire, leaving the remaining partner to continue as a sole proprietor. Or a sole proprietor may be advised by their accountant to become a limited company. Whatever the reason, changing legal entity type will impact on the licence they hold with the Gambling Commission.

 An existing, licensed operator can change their legal entity without having to go through the full application process. For example, it is possible for a sole proprietor to become a limited company or a partnership to become a sole proprietor. A full list of accepted changes to legal entity is found at the foot of this page.

 However, in all cases, there are conditions that must be met:

* the new legal entity must confirm that it is taking on all the undertaking, assets and liabilities of the existing entity
* the existing entity holds an operating licence and the new entity is going to apply for the same licence type, with the same or fewer licence activities as the existing entity's licence
* the existing entity must surrender its licence upon the granting of the new licence.

 If the type of change you are planning is on the following list, and you can meet the conditions above, it is still necessary for you to submit an application for the new entity, but the list of supporting documents is greatly reduced. You can view a list of the  [supporting documents required for each type of change](/licensees-and-businesses/page/documents-required-for-change-of-legal-entity)  .

 If the type of entity change you are planning is not on the following list, you will need to make a  [full application for an operating licence](/service/apply-for-an-operating-licence)  or submit a  [Change of Corporate Control](/licensees-and-businesses/guide/change-of-corporate-control)  application.

 The application fee for a Change of Legal entity is lower than the standard application fee for a new licence but the amount you pay is dependent on the specific criteria that you can meet. If can meet the specific criteria for each type of change the application fee is reduced to 25% of the standard fee. If you cannot meet the specific criteria, the application fee is reduced to 75% of the standard fee.

 For further details for the specific criteria that must be met refer to the  [specific criteria for 25% application fee](/licensees-and-businesses/page/change-of-legal-entity-specific-criteria-for-25-application-fee)  or the  [specific criteria for 75% application fee](/licensees-and-businesses/page/change-of-legal-entity-specific-criteria-for-75-application-fee)  .

>  Please note that if you are unable to meet either the previous conditions or the criteria shown on the tables, then you are unable to submit an application for a Change of Legal Entity and must instead apply as a new operator and pay the full application fee.
>
>

|  Existing entity  |  New entity  |
| --- | --- |
|  Sole Proprietor/Partnership/Limited  Liability Partnership  |  Limited Company/PLC  |
|  Sole Proprietor  |  Partnership/Limited  Liability Partnership  |
|  Partnership/ Limited Liability  Partnership of 2 people  |  Sole Proprietor  |
|  Partnership  |  Limited Liability Partnership  |
|  Limited Company/Plc  |  Sole Proprietor  |
|  Limited Company/Plc  |  Partnership/Limited  Liability Partnership  |
|  Limited Liability Partnership  |  Partnership  |

---

 Last updated: 29 July 2021

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Operating under another company's licence

 There is an exception which allows a person or company to provide facilities for gambling under another’s operating licence without themselves holding a licence.

>  You should always seek your own legal advice.
>
>

 Where a person provides facilities for gambling, as defined in  [section 5 of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/5)  , in the course of a business carried on by another person who holds an operating licence they can, in the case of betting or gaming, take advantage of the exception in  [section 33(3)(a) of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/33)  .

 There is a similar exception in the case of lotteries,  [section 258(3) (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/258)  , but that cannot be taken advantage of by anyone who acts as an external lottery manager.


 These are the general principles we take into consideration when deciding if a company is acting in the course of another’s business within the scope of this exception:

* The company must be doing the licence holder’s work. If the company does the same sort of work for other people, it is likely to be acting in the course of its own, discrete business and would require its own operating licence.
* Company accounts are likely to be consolidated with the licence holder's or, where that is not the case, the company’s sole customer would be the licence holder.
* The company is likely to be a wholly owned subsidiary of the licence holder.
* Responsibility for compliance lies squarely with the licence holder. We would expect that policies are decided, drawn up and enforced by the licence holder and they are responsible for ensuring compliance with all  [Licence conditions and codes of practice (LCCP)](/licensees-and-businesses/lccp/online)  and information requirements.
* Responsibility for adherence to technical standards lies with the licence holder and they have controls in place to ensure the company complies.
* Governance arrangements clearly show that the business is controlled by the licence.

 This list is not exhaustive and we would also look at:

* any employment contracts that may be in place (to satisfy the provisions in section 93 and 94 of the Act where relevant)
* who owns any relevant intellectual property rights
* what licences are held by the company in other jurisdictions and why.

 It is important to note that these are guidelines only and we will look at the individual circumstances and relationships in each case before coming to any decision as to whether a company can come within the scope of another’s operating licence rather than requiring its own. Whilst we may consider such arrangements acceptable in one instance, we might not in another due to seemingly small but significant differences or other relevant information available.


This exception can apply to these types of gambling

 There are other limitations on the ability of a person to operate under the umbrella of another’s licence, depending on the type of gambling.

###  Betting

 In the case of betting (other than pool betting), the ability of a person to operate under another person’s licence is limited by the requirement that bets can only be accepted by the licence holder, or a person employed by them under a written contract of employment or the holder of another general betting operating licence (see  [section 92 of the Act (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/92)  ).

###  Pool betting

 In the case of pool betting, equivalent restrictions apply but in addition there are specific permissions for individuals to act as agents in accepting bets on tracks in reliance on an  [occasional use notice](/licensees-and-businesses/page/occasional-use-notices-ouns)  or in relation to football pools, subject in either case to needing to be authorised in writing (see  [section 93 of the Act (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/93)  ).

###  Lotteries

 In the case of lotteries we may impose a requirement that all arrangements are made by someone holding a lottery manager’s operating licence (see  [section 98 of the Act (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/98)  ).

###  Gaming machines and gambling software

 The exemption in section 33(3)(a) is  **not**  available to gaming machine and gambling software manufacturers/suppliers because section 33 does not apply to them (they are covered by  [sections 41 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/41 )  and  [sections 243 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/243 )  .

 There is no express provision in sections 41 and 243 to allow a person manufacturing/supplying gaming machines or gambling software to operate under another’s licence.

 However, where the operational decisions for these companies are made by the owning parent company it can be appropriate for that owning parent company to be accountable for the group, as opposed to the individual companies being directly accountable, and for it to be the parent that holds the licence.

 We might, in appropriate circumstances and where the general principles outlined above apply, issue licences to manufacturers/suppliers which authorise the licence holder to carry out the relevant activities either directly, or through the subsidiary and include the name of the subsidiary in the licence.

 Provided the named companies carry out the licensed activities for the licence holder they will be covered by the licence. The licence holder will be responsible for the activities carried on by those companies as its agents, in particular that the machines and games comply with all technical standards.

 The licence holder must ensure these are named agents on its licence. The licence holder will be in breach of sections 41 or 243 if it operates through a company that has not been named as an agent on its licence.

 Naming the subsidiary companies as agents on the licence makes it absolutely clear that the licence holder is responsible for all compliance issues. We will take action if necessary against the licence holder if by reason of the acts of any of the agents it fails to comply with  [LCCP](/licensees-and-businesses/lccp/online)  or technical standards.

>  You should always seek your own legal advice, if in any doubt,  [contact us](/contact-us)  to discuss your individual circumstances.
>
>

---

 Last updated: 16 March 2021

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>  While we will hold you to account for what you say in your statements, the main beneficiary of the statement is you, the operator.
>
>

 Assurance statements are designed to improve the focus and accountability on the delivery of the licensing objectives by the boards, or equivalent senior leadership structures, of large gambling businesses.

 The statements are intended to:

* be a relatively concise self-assessment of the risks to the licensing objectives posed by the business
* how well you are managing those risks
* where you need to improve and how you intend to do so.

 Assurance statements provide a means for your board to provide constructive challenge within the business on the effectiveness of your governance and risk management arrangements in facilitating positive consumer protection, addressing gambling-related harm and crime prevention measures.


 We want you to embrace the challenges of the regulatory landscape by actively and effectively managing your risks and issues and to inform key business decisions. In turn, we are committed to a proportionate and risk-based regulatory regime.

 If licensing objectives are the focal point of your decision making and they are supported by good governance, risk management and a high level of compliance your business is less likely to present a risk.

 If this approach is successful, as we believe it will be, and over time more and more operators incorporate the licensing objectives into their corporate culture, the need for external regulatory scrutiny may decrease.

 The precise governance arrangements of organisations will vary depending on the size, nature, and complexity of your operations or on the gambling services you provide. We will take this into account when we receive and review your assurance statements.

 The previous examples provide indicative content of the assurance statement templates (the 2019 versions). The templates provide a structure to populate, as well as explanatory notes, and have been made available in a format that can be manipulated to enable tailoring of the layout as required. These templates are available to download at the bottom of the page.


 Some files may not be accessible for users of assistive technology. If you require a copy of the file in an accessible format  [contact us](/forms/formatrequest)  with details of what you require. It would help us to know what technology you use and the required format.

 **PDF Files**  Some PDF files cannot be displayed in a browser, you will see a message saying 'Please wait...'. If you see this message, you will need to download the file and open it in  [Adobe Acrobat Reader (opens in a new tab)](https://get.adobe.com/reader/)  .

 [Example: AS-template-B2B-2019-20

 application/vnd.openxmlformats-officedocument.wordprocessingml.document Document 108.7 kB](//assets.ctfassets.net/j16ev64qyf6l/N5aBGZlsZKJDsHyeYCKVA/adef2188d6c4e286ca4c17130274f3f8/AS-template-B2B-2019-20.docx) [Example: AS-template-B2C-2019-20

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 What you need to tell us when you hold an operating licence](/licensees-and-businesses/guide/what-you-need-to-tell-us-when-you-hold-an-operating-licence)  [Next page
 LCCP notifications](/licensees-and-businesses/guide/page/lccp-notifications)

---

 Last updated: 6 April 2021

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 An LCCP notification is a report to us about information we have asked for within our  [Licence conditions and codes of practice](/licensees-and-businesses/lccp)  .

 We expect you to work with us in an open and cooperative way and to inform us of anything we may need to be aware of.

 Our LCCP notification requirements are contained in these parts of the Licence conditions and codes of practice:  **Licence condition 11.1.1**  (lotteries and local authorities)

 **Licence condition 15.1.1**  (reporting suspicion of offences etc – non betting licences)

 **Licence condition 15.1.2**  (reporting suspicion of offences etc – betting licences)

 **Licence condition 15.1.3**  (reporting of systematic or organised money lending)

 **Licence condition 15.2.2**  (other reportable events)

 **Licence condition 15.2.3**  (other reportable events – money laundering, terrorist financing, etc)

 **Ordinary code provision 3.2.2, 3.2.4, 3.2.6, 3.2.8**  (access to gambling by children and young persons)

 **Ordinary code provision 3.8.1**  (money-lending between customers)

 **Ordinary code provision 8.1.1**  (information requirements – ordinary code)

 **Ordinary code provision 8.1.2**  (provision of information in respect of cheating)

 All LCCP notifications are to be reported to us via the LCCP Notifications part of the  [eServices digital service (opens in a new tab)](https://secure.gamblingcommission.gov.uk/EServices/Account/Login?ReturnUrl=%2feservices)  .

 There is also  [guidance for licence holders on submitting LCCP notifications](/guidance/lccp-Information-requirements)  available.

###  You need to tell us as soon as reasonably possible about any of these matters:

* information about any known or suspected offences under the  [Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/contents)  or breaches of the LCCP
* information that may lead us to consider making an order to voiding a bet under the  [Gambling Act 2005 section 336 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/336)
* cases of systematic, organised or substantial money lending between customers on gambling premises
* material changes to your business’s arrangements for the protection of customer funds (see Licence condition 4)
* changes of Alternative Dispute Resolution providers (unsure of link) for the handling of customer disputes
* if a group company not licensed by us advertises remote gambling to a new jurisdiction, or the Gross Gambling Yield (GGY) generated by that company exceeds set thresholds relative to group GGY
* if your business has breached, or potentially breached requirements imposed by the  [Proceeds of Crime Act 2002 (Parts 7 and 8) (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2002/29/contents)  or the  [Terrorism Act 2000 (Part III) (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2000/11/contents)  .
* Changes of persons appointed as the officer responsible for your businesses’ compliance with the  [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (opens in a new tab)](https://www.legislation.gov.uk/uksi/2017/692/contents/made)  (opens in a new tab) (Regulation 21(1)(a) and 21(3))
* details of any child or young person repeatedly attempting to gamble on premises restricted to adults
* descriptions and copies of the rules (or changes to these) of any lottery to be promoted
* confirmation from a qualifying auditor that the proceeds of any lottery exceeding £1 million in any calendar year are accounted for in a licensee’s annual accounts
* any other matters that will have a material impact on your business or its ability to conduct licensed activities compliantly and consistently with the licensing objectives.

 [Previous page
 Assurance statements](/licensees-and-businesses/guide/page/assurance-statements)  [Next page
 Notification of security breaches](/licensees-and-businesses/guide/page/notification-of-security-breaches)

---

 Last updated: 1 November 2021

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 You must tell us about any security breach to your environment that could harm the confidentiality of customer data or prevent the licensee’s customers, staff, or legitimate users from accessing accounts for longer than 12 hours.  We use the information you report to monitor ongoing compliance and evaluate risk across the industry. If themes emerge that may be valuable to share (such as specific attacks targeting a number of businesses) this may be fed back to help you deal with emerging threats.

##  [LCCP: Licence condition 15.2.1 (para 16)](/licensees-and-businesses/lccp/condition/15-2-1-reporting-key-events)

##  Types of incidents

##  When to report - severity of incident

##  Details to provide

##  How to notify us of an information security breach


LCCP: Licence condition 15.2.1 (para 16)

This licence condition applies to all operators and would include an information security breach for any operator who holds electronic records of customer information or gambling transactions.


 These are some common examples of incidents which may impact on the confidentiality of customer data or the availability of accounts:

* infection by viruses or malicious software
* ransomware infection
* theft or damage of computer equipment
* attacks by unauthorised outsiders resulting in network penetration
* unauthorised access (internal or external)
* unauthorised or accidental disclosure of customer data
* staff or third party misuse of customer data
* denial of services attacks
* customer impersonated fraud (identity theft).


 Minor incidents should not necessarily be reported. You can decide whether the severity of an incident means it should be reported. You should record and keep your evidence as to how the decision to report or not report was made by the appropriate PML (or in the case of a small scale operator the appropriate ‘qualified person’).

 The Information Commissioner’s Office (ICO) provides guidance on when security breaches involving personal data should be reported to them and this should be considered when making a decision to report (both to the ICO and to us).

###  The key considerations are:

* potential detriment that could be caused to the individuals affected
* volume of data that has been affected
* sensitivity of the data that has been affected
* financial loss to customers.

 As a general rule, if a large volume of customer data has been affected, this should be reported. If a low volume has been affected but there is the potential for serious detriment or the data is highly sensitive, this should also be reported. Consideration should also be given to notifying affected customers where warranted. Refer again to the ICO guidance in this area.

 The ICO is primarily interested in breaches of personal information, our interest has a wider remit such as unavailability of customer accounts for more than 24 hours or the loss, corruption or unauthorised modification of other critical gambling records such as player account balances, prizes or gambling transaction records.


 You should provide sufficient information to describe the incident that has occurred, the severity of the incident and the volume of data affected.

 Consider the following when submitting a report:

* the nature of the incident
* the location of the incident
* the services attacked or compromised
* when it first occurred
* when it was detected
* how it was detected and whether you are able to precisely identify the extent of the incident (how many customers affected, whether data was taken, what data and systems were affected)
* what mitigating action has been taken
* whether the root cause been identified
* whether any other parties such as ICO, police, external security consultants or customers been notified and the consideration given to not notifying some or all of the other parties
* what preventative action has been taken or will be taken to prevent future breaches.


How to notify us of an information security breach

 Breaches must be reported as key events as soon as reasonably practicable and in any event within five working days of the licensee becoming aware of the event’s occurrence.

 [Previous page
 LCCP notifications](/licensees-and-businesses/guide/page/lccp-notifications)  [Next page
 Protecting customer funds](/licensees-and-businesses/guide/page/protecting-customer-funds)

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 Last updated: 13 April 2021

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 Your terms and conditions must include information about your arrangements for protecting the customer funds you hold in the event of insolvency, the level of that protection and the method you use to achieve this.

 This information must be made available at the point when a customer deposits money. Information must be available in a manner which requires customers to actively acknowledge that they have read it. Customers must not be allowed to use their funds for gambling until they have provided this confirmation.

 [LCCP: Licence condition 4.1.1](/licensees-and-businesses/lccp/condition/4-1-1-segregation-of-funds)
 [LCCP: Licence condition 4.2.1](/licensees-and-businesses/lccp/condition/4-2-1-disclosure-to-customers)

>  You must inform customers of any changes to your arrangements for protecting customer funds before implementing those changes in your terms and conditions. You must also disclose the changes when a customer subsequently makes any deposits. Customers are required to acknolwedge these changes.
>
>

 Our  [Customer funds: segregation, disclosure to customers and reporting requirements guidance](/guidance/customer-funds-segregation-disclosure-to-customers-and-reporting)  explains how you can comply with the requirements, including advice on what is classed as customer funds and how to apply the customer funds rating system.

 It also includes examples of common errors we have identified during our compliance work.


Reporting on your protection of customer funds

If there are any changes in your protection of customer funds arrangements you must notify us. This is considered an ‘other reportable event’ and you can notify us via  [eServices (opens in a new tab)](https://secure.gamblingcommission.gov.uk/EServices/Account/Login?ReturnUrl=%2feservices)  .


Remote operators who hold customer funds

 In addition to the above requirements, if you are a remote (online) operator you must also:

* hold customer funds in a separate account
* report information about customer funds as part of your overall quarterly regulatory returns. This includes a breakdown of customer funds relating to customers in Great Britain and those relating to customers outside of Great Britain.

 [Previous page
 Notification of security breaches](/licensees-and-businesses/guide/page/notification-of-security-breaches)  [Next page
 Remote game/software payment faults](/licensees-and-businesses/guide/page/remote-game-software-payment-faults)

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 Last updated: 26 August 2022

 Show updates to this content  Updated the links for 4.1.1 and 4.2.1 to go to the relevant section within the online LCCP.


 Faulty games which affect the return to player impact the fair and open  [licensing objective](/about-us/guide/what-we-regulate)  and reduce consumer confidence in gambling.

 This is relevant for you if you are a remote operator of random number generator (RNG) driven games, both business to consumer/player (B2C) and business to business (B2B) or a game hosting business.

 It covers reportable events in relation to gambling system or game software faults and matters to be considered when you are seeking to remedy the outcomes of such faults.

 Ordinary code provision 15.2.1 (Reporting key events - gambling facilities) requires the reporting as a key event of any game fault affecting the player return of the game. All events must be submitted via the  [eServices digital service (opens in a new tab)](https://secure.gamblingcommission.gov.uk/EServices/Account/Login?ReturnUrl=%2feservices)  .

 We use information on faults to monitor ongoing compliance but also evaluate risk across the sector.

 Of particular interest is identifying where in the design, development or deployment of games the fault occurred and whether the internal and external testing should be improved.

 Should themes emerge that would be of value to share with the sector this may be fed back to help operators and test houses deal with common and emerging trends.