 These include:

* Are you curious about your customers?
* Are your indicators relevant to your products and customers?
* Do you rely too much on financial indicators like deposit levels or losses?
* Do you consider all types of vulnerability?
* How do you decide the right level of your thresholds? Do you set your thresholds based on the staff you have to manage the workload, or do you think about what is right for your customers?
* Do you take into account all relevant information, and act quickly?
* Do all appropriate staff have access to customer interaction records?
* How could you assess the risks around new customers? What can you find out about your customers? What protections could you put in place until you know enough about your customers?
* Can your monitoring process keep up with demand?
* Do you offer the same level of protection for all your customers, no matter how long they have been a customer, what time of day they play, or whether they are VIPs?
* Do you track customers across your different platforms and do enough to spot multiple customer accounts?
* Is staff training on customer interaction meaningful and engaging?

 [Previous page
 Vulnerability](/licensees-and-businesses/guide/page/vulnerability)  [Next page
 Interacting with the customer](/licensees-and-businesses/guide/page/interacting-with-the-customer)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 When you are concerned that a customer may be experiencing harm, acting early and quickly could help stop or prevent the harm worsening.

 For some customers, making them aware of why you are concerned may be enough to prompt them to think and make a change. Some customers will need more support or advice.

 Your interactions should have an outcome. Knowing what impact your interaction has had will help you support the customer and help to keep improving your approach. To achieve this, it is vital to keep good records and make them available to staff to inform decisions.

###  Interact

 We expect you to: * be curious, and if you spot behaviour or vulnerabilities that could indicate harm, to act on it.
* make all reasonable efforts to make contact and interact with a customer, and find out what impact your interaction had.
* you should choose the type of interaction based on the extent of the potential harm – from automated responses to human contact – and adapt your messaging to try to get the best outcome. You should trial and evaluate different approaches to achieve this.  **Importantly, this may include refusing service or ending the business relationship.**
* think about what information you should give the customer, such as describing the type of behaviour they display or practical help or support where appropriate.

 There are a number of ways for you to interact with your customers, including email, telephone calls, live chat or pop-up messages.

 The best way may depend on the circumstances:

* what you need to know from the customer, and what you already know about them.
* what information you want to give to the customer.
* how urgent it is to make contact.
* how many times you have already interacted with the customer.
* the outcome you want to achieve.

###  A customer interaction has three parts

 These are:

1. Observation – behaviour or activity you have spotted or something the customer tells you.
2. Action – contact to prompt the customer to think about their gambling, for you to find out more, and an opportunity for you to offer information or support.
3. Outcome – what you or the customer did next. In some cases, you may need to monitor the customer’s gambling to spot any change which may prompt further action.

 [Previous page
 Spotting harmful gambling](/licensees-and-businesses/guide/page/spotting-harmful-gambling)  [Next page
 Tailoring messages for your customers](/licensees-and-businesses/guide/page/tailoring-messages-for-your-customers)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 You may already target your marketing messages to different customers. You could also use insight about your customers, such as how the customer prefers to contact you, to decide the best way to interact with them about their gambling.

 Industry-led research  [(Revealing Reality 2017)(PDF opens in new tab)](https://about.gambleaware.org/media/1581/revealing-reality-igrg-report-for-gambleaware.pdf)  shows that messages that get customers to think and make their own decisions based on the information they are given can be more effective than messages that seem to be ‘nagging’. Research by  [Auer and Griffiths 2015 (opens in new tab)](https://www.frontiersin.org/articles/10.3389/fpsyg.2015.00339/full)  also shows that personalising feedback can also improve the impact it has on customers. You should test different types of messaging to see what works best.

 [Previous page
 Interacting with the customer](/licensees-and-businesses/guide/page/interacting-with-the-customer)  [Next page
 Offering help and support](/licensees-and-businesses/guide/page/offering-help-and-support)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 Encourage customers to think about their gambling. Their responses will help you work out the right kind of help and support to offer.

 It is good practice to suspend direct marketing to customers who show signs of harm so that you do not actively encourage them to keep gambling while you consider them to be experiencing or at risk of harm.

 If you have difficulty making contact with a customer, you could suspend account access until you are able to interact with them.

 A self-assessment questionnaire can help customers think about their own gambling. Their shared responses, alongside their gambling behaviour, can help both you and the customer work out the right kind of help and support they may need.

 You will need to direct some customers to information about safer gambling, and/or suggest suitable gambling management tools. You might need to signpost them to sources of help and specialist support from organisations who deal with advice and treatment for problem gambling.

 You will need to interact with some customers a number of times. Your records of previous interactions with customers will help you decide how to provide the right help and support.

 Feedback from consumers shows that they often respond better to being informed about their behaviour and why, rather than being “told” what to do. But for some customers, and particularly if the behaviour continues to cause concern, you may need to take a more proactive approach. In some cases, you may need to take action for the customer, such as setting limits or refusing service by closing their account.


 You should ensure that your staff:

* understand the types of interaction that could take place and how to interact appropriately e.g. only need a brief intervention may be needed.
* know the type of help or support to offer, such as information, signposting customers to specialist support or the gambling management tools which are available. These may be the minimum required under the LCCP or the Remote Technical Standards, or tools you offer which go beyond minimum requirements.
* know the circumstances and process for refusing service to customers, such as by applying limits or closing an account.
* understand their respective responsibilities and who is designated to carry out customer interactions, if only certain staff members are authorised to interact.

 Whilst training on the legislative framework is important, staff also need to be trained on the skills and techniques they need to help them carry out customer interactions, including what to do if a customer becomes distressed.

 [Previous page
 Tailoring messages for your customers](/licensees-and-businesses/guide/page/tailoring-messages-for-your-customers)  [Next page
 Keeping records](/licensees-and-businesses/guide/page/keeping-records)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 Good record keeping allows you to demonstrate when and why you have interacted with customers, and helps with ongoing monitoring of customers.

 You should:

* keep records of all customer interactions, including where an interaction didn’t take place, the reasons for this, and how it was followed up
* make use of and record all relevant sources of information to guide and deliver effective customer interactions, including your records of previous interactions.

 Good records should include:

* the behaviour or activity before the interaction.
* the change in behaviour or prompt for the interaction.
* how you interacted and what was said or done, for example advice or suggestions to help the customer manage their gambling, or to take a break from their gambling, and
* what happened next.

 You should also record situations where an interaction was prompted but did not take place, and how you followed that up.

 In some cases, you will need to monitor the customer’s gambling to spot behaviours which could indicate further harm.


* Where concerns arise, are you able to intervene early and engage with a customer?
* How do you decide the best way of interacting with a customer? Do you use different methods for different groups of customers?
* Do you tailor your method and message depending on the extent of the harm?
* Do you know if the customer received and acted on the information you gave?
* Have you allocated sufficient resources to be able to interact with customers early and effectively when you have concerns?

 [Previous page
 Offering help and support](/licensees-and-businesses/guide/page/offering-help-and-support)  [Next page
 Evaluate](/licensees-and-businesses/guide/page/evaluate)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 By evaluate, we mean to understand impact and effectiveness in two ways:

* did an individual customer interaction have a positive outcome for the customer, and
* does your overall approach to customer interaction work?

 To help with the latter, the Advisory Board for Safer Gambling published an evaluation protocol in 2016 for the industry to use when designing evaluations.

>  Find out more about the  [National Strategy to Reduce Gambling Harms](/about-us/reducing-gambling-harms)  , including the  [evaluation protocol](/manual/national-strategy-to-reduce-gambling-harms/evaluation-gambling-commission-actions)  and further research on gambling-related harms.
>
>

###  Evaluate

 We expect you to: * Understand the impact of individual interactions on a consumer’s behaviour and whether, or what, further action is needed.
* Evaluate the effectiveness of your approach by trialling and measuring impact.
* Embed lessons learned and best practice across the business and collaborate to share across the industry.

 [Previous page
 Keeping records](/licensees-and-businesses/guide/page/keeping-records)  [Next page
 Understanding the impact of individual interactions](/licensees-and-businesses/guide/page/understanding-the-impact-of-individual-interactions)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


Understanding the impact of individual interactions

>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 In this context, by impact we mean a change in the customer’s  **gambling activity**  which could be attributed to the interaction. An important part of this is whether the customer has understood the information or advice you gave.

 Not every customer who receives an interaction will require active follow up, but many will. In these cases, follow up activity should be proportionate to the severity or extent of the harm being displayed. This approach will help you target your resources where they are most needed.

 Understanding the impact of the interaction on the customer includes being able to look at and compare:

* the behaviour before the interaction.
* the change in behaviour or prompt for the interaction
* how you interacted and what was said or done, and
* what happened next.

 Some ways to work out that impact include:

* Did the customer start using gambling management tools; independently or following your advice?
* If you are tracking links from emails, did the customer click through to safer gambling information?
* Was there a positive change in behaviour? Did the customer’s gambling seem to change after the interaction?
* You could also follow up and ask the customer whether they found the interaction helpful or not.
* Is there a need for further or follow up action?

 You may already quality assure individual customer interactions by spot- checking chat records and emails. As well as checking that customers are getting the right support, this can also identify staff development needs and highlight good practice that you can share across your business and across the industry.

 [Previous page
 Evaluate](/licensees-and-businesses/guide/page/evaluate)  [Next page
 Evaluating the effectiveness of the approach](/licensees-and-businesses/guide/page/evaluating-the-effectiveness-of-the-approach)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


Evaluating the effectiveness of the approach

>  This formal guidance for remote gambling operators is not current and from 12 September 2022 operators are no longer required to take it into account. It was published in July 2019 and remained in effect from 31 October 2019 to 11 September 2022.
>  Following our consultation on customer interaction, Social Responsibility Code Provision 3.4.3 for remote gambling operators has been introduced and the majority of requirements are in effect from 12 September 2022. We issued this  [update on the regulatory requirements and status of formal guidance regarding customer interaction for remote gambling operators](/news/article/new-remote-customer-interaction-requirements-and-guidance-update)  . The  [guidance issued in June 2022 under Social Responsibility Code Provision 3.4.3](/guidance/customer-interaction-guidance-for-remote-gambling-licensees-formal-guidance)  is not in effect and is subject to further consultation. Operators are not required to take it into account.
>
>

 Records of interactions provide useful evidence of what types of indicators, methods of interacting and options for support work well for customers. They will help to inform an evaluation of the effectiveness of your overall approach to customer interaction. Good evaluation helps you to understand which aspects of your approach are the most effective at identifying the right customers, and the types of tools or support that work well to help customers manage their gambling in a way that works for them.

 The following measures could help to work out whether your approach is working well:

* gambling management tools – increased take up and more customers sticking within their limits.
* customer retention.
* reduction in complaints.
* numbers of customer interactions appear to be in line with the prevalence of gambling harm for the product, as follows.

 Statistics which estimate the numbers of problem and ‘moderate risk’ gamblers are published regularly, based on the combined health surveys in England, Scotland and Wales (NatCen 2018). This data is broken down to gambling activity type, and by region, and can help you to work out the percentage of your customers you should be interacting with. When looking at the potential percentage of your customers who may be experiencing harm, remember to consider the percentage of gamblers participating in that activity and not the percentage of the adult population.

 Currently the only industry-wide quantitative measure of identifying and interacting with customers who may be experiencing harms associated with gambling is data on the numbers of customers who received an interaction, submitted to the Commission as part of  [regulatory returns](/guidance/regulatory-returns-guidance)  . We have clarified the definitions in regulatory returns to offer guidance on what should be included in a customer interaction (incident) log and make clearer what should be recorded.

 Your log should include as a minimum:

* the identity or other identifier of the customer involved
* the behaviour or activity that prompted the interaction
* the advice or support given, and
* the outcome of the interaction.

 Keeping your policies and procedures under review and up to date by taking into account research and industry best practice will help you to identify customers you should be interacting with, which will help you target your resources where they are most needed, in ways which may lead to better outcomes. You should also review your internal controls following the publication of a regulatory settlement, to address any similar weaknesses which could exist in your own processes.


 Your staff have an important role to play to understand whether your approach works.

 As a minimum, you should:

* ensure that staff make records of all customer interactions and use them to aid decision making. Such records should be used for evaluation purposes, for example dip sampling for quality assurance purposes or to assess whether a customer changed their behaviour as the result of an interaction
* train staff to recognise when follow-up activity to an interaction is required
* ensure that staff use customer interaction records as a decision- making tool
* ensure that staff are properly supported in carrying out effective interventions.


* Do you know how many of your customers may be experiencing some level of harm associated with gambling?
* How do you know you are delivering positive outcomes for your customers?
* How could you improve on your policy and procedures? How do you plan to make improvements over time?
* How could you share your good practice with the industry?

 [Previous page
 Understanding the impact of individual interactions](/licensees-and-businesses/guide/page/understanding-the-impact-of-individual-interactions)

---

 Last updated: 15 September 2022

 Show updates to this content * Information in the callout at the beginning of the guidance page has been updated.


We encourage operators to consider how they can gather data both before and after the implementation of any measure so that they can demonstrate the impact of control measures.


 Research has shown that individuals can frequently gamble more money than they intended during gambling sessions. This leads to them making impulsive decisions that override their initial intentions to allocate a set amount of money to gamble with. Easy access to additional funds in gambling premises can therefore be a risk factor for problem gambling.  [Key issues in product-based harm minimisation (opens in a new tab)](https://www.greo.ca/Modules/EvidenceCentre/Details/key-issues-in-product-based-harm-minimisation-examining-theory-evidence-and-pol)  by Parke A, Parke J and Blaszczynski, A, was published in December 2016, and is a summary of research evidence.

 Research also shows that non-cash payment methods in gambling can lead to consumers over-spending, as such methods require less thinking about the actual cost and affordability implications of a transaction compared to cash payments.

 It is for operators to consider how player protection and empowerment can be most effectively delivered in practice.

 They are best placed to assess which measures are:

* most effective in mitigating the risk of customers spending more on gambling than they might be able to afford
* which are most effective in enabling customers to retain control over their own gambling spend. Operators may need to take account of specific risks such as the layout of their premises or vulnerabilities for particular customers.

 As part of their assessments on how they can best mitigate harm, operators must consider how they can facilitate the following. While there is no evidence to suggest what the ideal duration of a break should be, wherever possible the customer should at least be required to cease gambling at, and physically leave, the machine, terminal or table at which they are situated. This provides some time away from the gambling facilities before they are able to access and use new funds. This is consistent with the mandatory conditions attached to all premises licences that any ATM is located in a place that requires customers to cease gambling and leave the gambling product in order to use it.

 In any circumstance where customers might be able to access new gambling funds with only a limited or no physical break from the gambling product (for example, where customers might be able to use a debit card to replenish an app-based digital gambling ‘wallet’), the operator must ensure that customers are otherwise provided a break from or an interruption in gambling before those funds can be used.

###  Customers should be required to take a break from gambling before they access and use new funds to continue gambling

 The purpose of the break or interruption in play is to reduce the risk of harm to players that could arise from them losing track of the time and money they have spent gambling. By interrupting their state of dissociation, a break in play can give customers an opportunity to evaluate their own gambling behaviours, and could therefore facilitate better control (see  [Operator-based approaches to harm minimisation in gambling (opens in a new tab)](https://www.begambleaware.org/media/1177/obhm-report-final-version.pdf )  , by Parke A, Parke J, Blaszczynski, A and Rigbye J, published by Gamble Aware in 2014). A break or interruption in play could therefore involve, for example, slowing the transactional process and providing delays before new funds are made available to the player for use; perhaps combined with informative messaging, so as to support the player’s control and awareness of their gambling spend.

 Operators should use these new opportunities to support innovation in the protection and empowerment of consumers. For example, cashless payment technology may assist operators in tracking their customers’ play, allowing them to collect better data on their customers’ gambling behaviour and therefore helping to inform an assessment of those who may be at risk of gambling-related harm.

 The new technologies may also assist in the provision of tailored responsible gambling information to customers, including transactional information on the sums of money they have spent or withdrawn; or the development of player-led controls to enable better self-management of the customer’s gambling (eg allowing customers to set their own spend or withdrawal limits).

 [Previous page
 Cashless payment technologies in gambling premises](/licensees-and-businesses/guide/cashless-payment-technologies-in-gambling-premises)  [Next page
 Licence Conditions and Codes of Practice: cashless payment](/licensees-and-businesses/guide/page/licence-conditions-and-codes-of-practice-in-cashless-payment-technologies)

---

 Last updated: 28 November 2022

 Show updates to this content  Following an audit the link to 'Key issues in product-based harm minimisation' has been updated.


Licence Conditions and Codes of Practice: cashless payment

 There are certain conditions and codes of practice that must be adhered to when providing cashless payment facilities. These include, for example, the need to implement effective policies and procedures for minimising certain risks to the licensing objectives; and provisions that limit the circumstances in which credit can be provided, or prevent credit cards being accepted (and where the Gambling Act does not otherwise prohibit or restrict any such facility).

##  Operators should refer to the LCCP for full details of the following relevant requirements:

 [The Gaming Machines (Circumstances of Use) Regulations 2007 (opens in a new tab)](https://www.legislation.gov.uk/uksi/2007/2319/contents/made)  provide prohibitions and restrictions on the use of debit and credit cards for payments to play machines, which are straightforward safeguards intended to prevent consumers from gambling more than they can afford via a card.

##  Specific matters in relation to gaming machine payments


Operators should refer to the LCCP for full details of the following relevant requirements:

* [Licence condition 5.1 – cash and cash equivalents, payment methods and services](/licensees-and-businesses/lccp/condition/5-1-1-cash-and-cash-equivalents)
* [Licence condition 6.1 – provision of credit by licensees and the use of credit cards](/licensees-and-businesses/lccp/condition/6-1-1-provision-of-credit)
* [Social responsibility code provision 3.7 – provision of credit](/licensees-and-businesses/lccp/condition/3-7-1-provision-of-credit)


Specific matters in relation to gaming machine payments

 Our view is that card payments that originate from contactless mobile payment systems such as Apple Pay, Android Pay or Samsung Pay should be regarded as the same as payments to use a gaming machine by means of a card itself. This is because the device used for such types of payment (eg a smartphone or watch) is essentially just a medium by which a contactless card payment is made (ie the debit card sat behind the payment system is charged directly and the customer’s bank account is debited; the same as for any payment where the debit card itself is used).

 Both contactless card and mobile payment system transactions can be completed quickly, and so the risks to the consumer are largely identical.

 The regulations also prescribe limits as to the amounts an individual can deposit onto a gaming machine in any single action, and separately the (non-refundable) amount a player can commit to play the machine. These measures were designed to ensure consumers make regular decisions as to how much money they wish to commit to play a machine, and they must be observed regardless of the means of payment. That is, whether the customer has inserted cash into the machine, or whether they have transferred funds from a debit card via indirect means, a TITO (ticket-in, ticket-out) method or an operator-provided app-based digital wallet, a customer must only be able to deposit and commit funds to the gaming machine’s meters in accordance with these limits.

 [Previous page
 Minimising gambling-related harm](/licensees-and-businesses/guide/page/minimising-gambling-related-harm)  [Next page
 Checklist of considerations](/licensees-and-businesses/guide/page/checklist-of-considerations)

---

 Last updated: 7 June 2021

 Show updates to this content  No changes to show.


Licence conditions and codes of practice (LCCP)

 Our  [LCCP](/licensees-and-businesses/lccp/online)  is the rulebook that sets out the measures that you must take and other aspects that we think are good practice. Use the LCCP as a starting point in order to run your business and build on these provisions, to ensure that you put your customers at the heart of your business.

 [Previous page
 Compliance with safer gambling requirements](/licensees-and-businesses/guide/page/compliance-with-safer-gambling-requirements)  [Next page
 Working together to improve standards of safer gambling](/licensees-and-businesses/guide/page/working-together-to-improve-standards-of-safer-gambling)

---

 Last updated: 9 June 2021

 Show updates to this content  No changes to show.


Working together to improve standards of safer gambling

 We work with a number of partner organisations in the area of safer gambling.

 [GambleAware's (opens in a new tab)](https://www.begambleaware.org/)  programme of treatment, education, harm prevention and research is guided by the  [National Strategy to Reduce Gambling Harms](/about-us/reducing-gambling-harms)  , which is defined by the independent  [Advisory Board for Safer Gambling (ABSG)](/about-us/governanceCommitteesAndBoards/advisory-board-for-safer-gambling)  , and endorsed by us.

 We also work with industry groups responsible for raising standards in safer gambling, such as  [Industry Group for Responsible Gambling (opens in a new tab)](https://bettingandgamingcouncil.com/members/igrg)  .

##  Our expectations

 [Previous page
 Licence conditions and codes of practice (LCCP)](/licensees-and-businesses/guide/page/licence-conditions-and-codes-of-practice-lccp)

---

 Last updated: 13 October 2021

 Show updates to this content  Reference to Senet group removed and link for Industry Group for Responsible Gambling updated.


“We want to see you harnessing the same innovation and tools that are used to determine customer profitability, to drive customer protection.  There is perhaps no better way to demonstrate a drive to raising standards than through a genuine and public commitment to meeting your social responsibilities.” - former CEO, Sarah Harrison.


5.1.11 - Direct electronic marketing consent

 Applies to:

 All licences

 **Social responsibility code**  Compliance with these is a condition of licences; therefore any breach of them by an operator may lead the Commission to review the operator’s licence with a view to suspension, revocation or the imposition of a financial penalty and would also expose the operator to the risk of prosecution.

1. Unless expressly permitted by law consumers must not be contacted with direct electronic marketing without their informed and specific consent. Whenever a consumer is contacted the consumer must be provided with an opportunity to withdraw consent. If consent is withdrawn the licensee must, as soon as practicable, ensure the consumer is not contacted with electronic marketing thereafter unless the consumer consents again. Licensees must be able to provide evidence which establishes that consent.


16.1.1 - Responsible placement of digital adverts

 Applies to:

 All licences

 1 Licences must:

- Ensure that they do not place digital advertisements on websites providing unauthorised access to copyrighted content;
- take all reasonable steps to ensure that third parties with whom they contract for the provision of any aspect of their business related to the licensed activities do not place digital advertisements on websites providing unauthorised access to copyrighted content; and
- ensure that the terms upon which they contract with such third parties enable them, subject to compliance with any dispute resolution provisions, to terminate the third party’s contract promptly if, in the Licensee’s reasonable opinion, the third party has been responsible for placing digital advertisements for the licensed activities on such websites.


Gambling regulation and the General Data Protection Regulation (GDPR)

 On 25 May 2018, there will be new data protection legislation in force, both in the UK and across the EU - the General Data Protection Regulation (GDPR).

 GDPR is an evolution in data protection. It demands more of organisations in terms of accountability for their use of personal data, and adds to the existing rights of individuals. It creates an onus on companies to understand the risks that they create for others, and to ensure they are mitigating those risks. But it is not a total revolution - GDPR is building on foundations which have already been in place for the last 20 years. Many of the fundamentals remain the same. Fairness, transparency, accuracy, security, data minimisation and respect for the rights of the individual whose data a business wants to process – these are all things that businesses should already be doing with data. GDPR seeks to build on those principles.

 The Information Commissioner’s Office (ICO) is responsible for the regulation of the legislation, and issuing guidance on it. More information on GDPR and its regulation in the UK is available on the  [ICO's website (opens in a new tab)](https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/)  .

 Some have expressed concerns to the Gambling Commission that GDPR will affect what actions they can take to tackle issues such as problem gambling, and gambling-associated crime.  We take the view that GDPR is not intended to prevent operators from taking steps which are necessary in the public interest, or are necessary to comply with regulatory requirements under a gambling licence. GDPR should not be improperly used as an excuse to avoid taking steps which enable compliance with licence conditions, promote socially responsible gambling, and promote the licensing objectives.

 Where licensees have genuine well-founded concerns about GDPR, we are committed to working with industry to get the right outcome - one that safeguards personal data whilst also promoting the licensing objectives.

 Whilst this document does not constitute legal advice, it will assist gambling businesses by setting out some factors they should consider when assessing their processing of personal data. It also sets out our expectations on retention of information obtained for the purposes of fulfilling those obligations. It will remain licensees’ responsibility to ensure they are legally compliant with GDPR and with our regulatory framework, and we recommend that operators obtain their own legal advice on compliance.

 This document may be updated from time to time in accordance with legal developments, including the finalisation of the Data Protection Bill.

##  General approach of the Commission to compliance

##  Personal data processing

##  Data subject rights

##  Other obligations

##  Next steps

##  Retention of data

##  Specific scenarios considered

##  Scenarios

##  Marketing to consumers

##  Footnotes

##  Annex A

##  Social responsibility code 3.1.1 – Socially Responsible Gambling

##  Social responsibility codes 3.5.1 and 3.5.3 – Self-Exclusion

##  Licence Condition 12.1.1 – Anti-Money Laundering

##  Social responsibility code 3.4.1 - Problem gambling

##  Licence Condition 15.1.1. – Reporting suspicion of offences etc – non-betting licences

##  Licence Conditions 15.1.2 - Reporting suspicion of offences etc – betting licences

##  Licence Condition 15.3.1 – Information provision

##  Licence Condition 2.3.1 – Technical standards

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 Processing of personal data will continue to be required in order to achieve compliance with a gambling licence. Providing facilities for gambling otherwise than in accordance with the terms and conditions of a licence is a criminal offence. It would also mean that operators’ may be fined, and their licence could be revoked. We expect licensees to continue to be able to evidence that they have complied fully with their licence conditions.

 We have been working closely with the ICO to ensure that the way in which licensees are interpreting and implementing GDPR does not conflict with the requirements of gambling regulation  [1](#1)  .

 The ICO produced a series of blogs to bust myths about GDPR. One example of this is the myth that “data can only be processed if an organisation has explicit consent to do so”. The rules around consent only apply if a business is relying on consent as its basis to process personal data. Consent is one way to comply with GDPR, but the new law provides five other ways of processing data that may be more appropriate than consent. For processing to be lawful under GDPR, you simply need to identify at least one lawful basis before you start (though more than one basis may potentially apply).

 So in common with the previous legislation, there has been a recognition that consent will not always be the appropriate basis for data processing. For example, it is likely to be acceptable for personal data to be processed where a licence obligation requires it. This may be the case even where the need to process data in this way is not specifically set out by a licence condition, if the processing is realistically necessary in order to achieve the aim of the condition  [2](#2)  .

 GDPR provides for a number of lawful circumstances which are designed to allow legitimate processing in circumstances where it may be not practical to acquire consent, and to ensure that public policy objectives (such as the reduction of problem gambling) are met. As well as consent, these include:
 **i.**  the processing is necessary  [3](#3)  for compliance with a legal obligation to which the controller is subject
 **ii.**  processing is necessary for the performance of a contract to which the data subject is party or in order to take steps at the request of the data subject prior to entering into a contract
 **iii.**  the processing is necessary for the performance of a task carried out in the public interest  [4](#4)
 **iv.**  the processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party (except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data)  [5](#5)  .

 Licensees should note that more than one of the above bases may apply to some of the personal data they obtain (for instance, data obtained to ensure operators know their customers).

 There are additional requirements where the personal data which is to be processed constitutes “special category” data, or data relating to criminal convictions and offences. We anticipate that the majority of data which licensees process for regulatory purposes (such as data on customer transactions) will not be special category data.

 Where processing of special category data or criminal offence data is required for the purposes of compliance with their licence obligations, licensees will wish to identify a legal basis which allows such processing. In addition to the permissible legal bases set out in GDPR, further permissible legal bases for processing are included in Schedule 1 of the implementing UK legislation (the Data Protection Bill) currently going through Parliament. For example, these include conditions which permit processing by non-government bodies of data about criminal activity where the processing must necessarily be carried out without the data subject’s consent, is necessary for reasons of substantial public interest, and either:
 **i.**  is necessary for the purposes of the prevention or detection of an unlawful act
 **ii.**  is necessary for the exercise of a protective function (such as protecting members of the public against dishonesty, malpractice or other seriously improper conduct).

 The Bill also includes a condition which allows processing of special category data where an individual is at risk and the processing is necessary for the purposes of protecting the mental or emotional well-being of an individual.

 Licensees will wish to take steps to ensure they can demonstrate that, for each type of processing, they meet the relevant tests of the identified basis.


 GDPR gives data subjects certain qualified rights in relation to their data, such as the “right to erasure” and “the right to prevent decisions being made solely based on the automated processing of data”. Data controllers should be aware of these rights, and make an assessment of the circumstances in which they do and do not apply. For example, such rights may not apply where their exercise conflicts with important regulatory objectives (such as the refusal of service to underage gamblers). Relevant considerations here may include:
 **i.**  The right to erasure is restricted where processing is still necessary in relation to one of the permitted purposes - for instance, compliance with a legal obligation, performance of a contract, or for the performance of a task carried out in the public interest.
 **ii.**  The right to prevent decisions being made solely based on the automated processing of data will not apply:
 **1.**  Where decisions are not made solely on this basis i.e. there is some human intervention
 **2.**  If the decision making is based on the data subject’s explicit consent
 **3.**  If the decision is one which is authorised by law to which the controller is subject.

 Licensees should also consider whether any other exemptions to data subject rights (such as those set out in Schedule 2 of the draft Bill) may apply. In particular, licensees should have regard to their role in preventing crime (including money laundering offences and cheating at gambling) and consider to what extent this objective would be likely to be prejudiced by a request to erase data or restrict processing of personal data, for example.


 In addition to identifying a lawful basis for processing, operators will need to comply with other aspects of GDPR, such as any applicable requirements for transparency with data subjects, and safeguarding of personal data.

 We do not anticipate that the need for such measures will cause a significant barrier to complying with gambling regulation. Indeed, being transparent with consumers at the outset (including informing them that their data may be passed to regulators when requested) may assist businesses to answer subsequent queries about the retention and use of their personal data for regulatory and public interest purposes. Thorough consideration of transparency requirements will also assist data subjects, and assist data controllers to demonstrate compliance with obligations relating to accountability.


 The ICO is continuing to produce guidance to assist businesses in complying with their GDPR obligations. This includes guidance on the available lawful bases. We recommend that licensees have regard to that guidance, as it will assist them to assess the best way of achieving their regulatory requirements under their licence and also meet obligations under data protection law.

 We will not accept licensees simply stating that GDPR means that they are unable to comply with an aspect of gambling regulation, or otherwise take certain steps to protect the public interest.

 Where genuine concerns, based on a careful and thorough analysis of GDPR and Commission regulation, are raised with us we will work with industry and the ICO to resolve them. However, if an operator thinks that this might be the case, we would expect them first to have carefully considered all available legal bases and exemptions which may allow the specific activity. Documenting the consideration of the processing will assist in meeting requirements regarding accountability and documentation.

 Whilst it will remain the responsibility of licensees to ensure they are legally compliant with GDPR, we are committed to offering assistance and support to help ensure that the licensing objectives and regulatory framework are upheld, and not prejudiced by the way operators interpret and implement compliance with their data protection obligations.


 GDPR does not substantially alter the principles behind the development of policies for data retention. Licensees should already have assessed how long to retain data for, bearing in mind the legitimate purposes for which it was gathered and has been retained.

 Under GDPR, data subjects may request that their personal data (including data which may be relevant to regulatory compliance) is erased. However, this right is not unrestricted. In particular, such requests are unlikely to be valid if retention of the data is still necessary in relation to a lawful purpose.

 Where data which is relevant to a licensee’s compliance with the regulatory regime has been obtained, licensees should have regard to the fact that we may wish to investigate whether a licensee has complied with their obligations. In some cases (for instance, where we are investigating a licensee’s compliance with its social responsibility and anti-money laundering requirements as a result of a gambler stealing funds for gambling over a prolonged period of time), this may involve requesting account data which goes back a substantial period. Licensees should ensure that their retention policies ensure that such data will be available to the Commission if requested  [6](#6)  .

 Based on our experience of investigations to date, licensees should ensure that data which relates in any way to regulatory compliance should be available for a minimum period of five years after the end of a relationship with a customer.


We have been provided with a number of scenarios in respect of which industry has expressed concern that GDPR will prevent them from processing personal data needed to comply with licence conditions and further the licensing objectives. We comment on a few of the following areas, in order to illustrate the approach licensees should take when considering such issues.


###  Self-exclusion and anti-money laundering

 **i.**  Licensees should consider the requirements of their licence (for example, those requirements included at  [Annex A](/licensees-and-businesses/guide/gambling-regulation-and-the-general-data-protection-regulation-gdpr#annex-a)  ). As licensees must achieve these outcomes, licensees should:
 **1.**  consider what personal data should be processed to achieve these outcomes
 **2.**  consider which of the permitted lawful bases for processing may apply to such processing

 **ii.**  As well as for compliance in relation to specific accounts, licensees may need to collate other personal data (such as data on changing customer demographics) in order to formulate effective policies, procedures and controls in these areas (and other areas) - see for example  [Licence condition 12.1.1](/licensees-and-businesses/lccp/condition/12-1-1-anti-money-laundering-prevention-of-money-laundering-and-terrorist)  .
 **iii.**  Licensees should also consider to what extent data subject rights, such as the right to erasure and right not to be subject to automated decision-making, may not apply given the relevant lawful basis
 **iv.**  Licensees should consider what retention period is necessary for any data obtained and processed for self-exclusion or anti-money laundering purposes (whether also obtained for other purposes). Operators should take into account that we may need to obtain such data even after an account has closed in order to establish whether or not a licensee has complied with its regulatory obligations.

###  Obtaining, retaining and using data for other social responsibility purposes

 **i.**  Licensees gather and retain personal information on customers in order to enable them to enter into and perform contracts, whilst taking into account their regulatory obligations. In common with other sectors we anticipate that licensees will continue to do so.
 **ii.**  Our licence conditions and codes of practice require operators, at the account opening stage and thereafter, to:
 **1.**  continue to obtain and retain information which is sufficient to satisfy them that underage gambling is not taking place
 **2.**  continue to obtain and retain information to enable them to comply with SR 3.4.1 in relation to identification of problem gambling, which requires operators to 'use… all relevant sources of information to ensure effective decision making'
 Licensees are expected to continue to obtain and analyse continue to obtain and analyse data for the purposes of ensuring that their social responsibility policies and procedures are fit for purpose, taking into account the state of the art and currently available techniques for identifying and minimising problem gambling.
 **iii.**  Licensees should also consider to what extent data subject rights, such as the right to erasure and right not to be subject to automated decision-making, may not apply given the relevant lawful basis.
 **iv.**  Licensees should consider what retention period is necessary for any data which is obtained and processed for these purposes (whether also obtained for other purposes), noting that we may need to obtain such data even after an account has closed in order to establish whether or not a licensee has complied with its regulatory obligations.

###  Sharing of data on suspected illegality (such as match-fixing, doping or fraud)

 **i.**  Licensees should consider whether processing of such data is for a permissible purpose, such as it being necessary in the public interest and/or a regulatory requirement. See  [Annex A](/licensees-and-businesses/guide/gambling-regulation-and-the-general-data-protection-regulation-gdpr#annex-a)  for more information.
 **ii.**  Although Article 10 of GDPR provides that, usually, processing of personal data relating to criminal convictions and offences shall only be carried out under the control of official authority, there are exceptions to this. The Bill includes conditions that allow processing to be carried out without the data subject’s consent, if necessary for reasons of substantial public interest, and either:
 **1.**  necessary for the purposes of the prevention or detection of an unlawful act
 **2.**  necessary for the exercise of a protective function (such as protecting members of the public against dishonesty, malpractice or other seriously improper conduct).
 **iii.**  Licensees should also note that there is a specific condition (at Schedule 1 para. 23) of the Bill to allow processing for the purposes of eliminating doping in sport, and a specific condition (at Schedule 1 para. 24) to allow processing designed to protect the integrity of a sport or sporting event.


 Separately, concerns have been raised about the volume of unsolicited direct e-marketing (predominantly via email and SMS) for gambling products which consumers receive. Such marketing is not undertaken in the public interest or to comply with regulation, but is done in order to sell a product. The ICO report that the gambling sector is one of the most complained about sectors in this respect. We, along with the ICO, are concerned about consumers receiving such direct marketing without their genuine consent.

 Licensees should ensure they are compliant with the law in relation to direct marketing, in particular the Privacy and Electronic Communications Regulations (and the ePrivacy Regulation which is due to be implemented shortly). Licensees should satisfy themselves that anyone they contract with in relation to direct marketing hold the appropriate consents from consumers for marketing of the licensees’ products. Ongoing failure to ensure compliance may result in regulatory action.


 1  We expect operators to take into consideration the Gambling Commission’s views expressed in this document. However operators should be aware that the Gambling Commission cannot provide any definitive ruling on the interpretation of the GDPR, and the ICO will address any issues on a case by case basis.

 2  Note that in respect of special category personal data, a further specific basis for processing would also be required.

 3  ‘Necessary’ in the context of such exemptions typically means “more than desirable but less than indispensable or absolute necessity.” This test may involve the consideration of alternative measures which would also sufficiently achieve the legitimate aim in question.

 4  Use of this basis is not limited to public bodies.

 5  We recommend that licensees refer to the guidance published by the ICO on use of this basis.

 6  Additionally, some licensees will be subject to specific statutory requirements to retain relevant data, under the Money Laundering Regulations 2017 for example.


Social responsibility code 3.1.1 – Socially Responsible Gambling

Licensees must have and put into effect policies and procedures intended to promote socially responsible gambling, including the specific policies and procedures required by the provisions of section 3 of this code.


Social responsibility codes 3.5.1 and 3.5.3 – Self-Exclusion

 **1**  Licensees must have and put into effect procedures for self-exclusion and take all reasonable steps to refuse service or to otherwise prevent an individual who has entered a self-exclusion agreement from participating in gambling.
 **2**  Licensees must, as soon as practicable, take all reasonable steps to prevent any marketing material being sent to a self-excluded customer.
 **6**  Licensees must put into effect procedures designed to ensure that an individual who has self-excluded cannot gain access to gambling. These procedures must include … a register of those excluded with appropriate records …


Licence Condition 12.1.1 – Anti-Money Laundering

 **1**  Licensees must conduct an assessment of the risks of their business being used for money laundering and terrorist financing. Such risk assessment must be appropriate and must be reviewed as necessary in the light of any changes of circumstances, including the introduction of new products or technology, new methods of payment by customers, changes in the customer demographic, or any other material changes, and in any event reviewed at least annually.
 **2**  Licensees must ensure they have appropriate policies, procedures and controls to prevent money laundering and terrorist financing.
 **3**  Licensees must ensure that such policies, procedures and controls are implemented effectively, kept under review, revised appropriately to ensure that they remain effective, and take into account any applicable learning or guidelines published by the Gambling Commission from time to time.


Social responsibility code 3.4.1 - Problem gambling

 Licensees must put into effect policies and procedures for customer interaction where they have concerns that a customer’s behaviour may indicate problem gambling, including:
 **e.**  Specific provision for making use of all relevant sources of information to ensure effective decision making, and to guide and deliver effective customer interactions, including in particular:
 **i**  provision to identify at risk customers who may not be displaying obvious signs of, or overt behaviour associated with, problem gambling: this should be by reference to indicators such as time or money spent.
 **ii**  specific provision in relation to customers designated by the licensee as ‘high value’, ‘VIP’ or equivalent.


Licence Condition 15.1.1. – Reporting suspicion of offences etc – non-betting licences

**1**  Licensees must as soon as reasonably practicable provide the Commission or ensure that the Commission is provided with any information that they know relates to or suspect may relate to the commission of an offence under the Act, including an offence resulting from a breach of a licence condition or a code provision having the effect of a licence condition.


Licence Conditions 15.1.2 - Reporting suspicion of offences etc – betting licences

 **1**  Licensees must as soon as reasonably practicable provide the Commission or ensure the Commission is provided with any information from whatever source that they:
 **a**  know relates to or suspect may relate to the commission of an offence under the Act, including an offence resulting from a breach of a licence condition or a code provision having the effect of a licence condition
 **b**  suspect may lead the Commission to consider making an order to void a bet.
 **2**  Licensees who accept bets, or facilitate the making or acceptance of bets between others, on the outcome of horse races or other sporting events governed by one of the sport governing bodies for the time being included in Part 3 of Schedule 6 to the Act must also provide the relevant sport governing body with sufficient information to conduct an effective investigation if the licensee suspects that they have any information from whatever source that may:
 **a**  lead the Commission to consider making an order to void a bet
 **b**  relate to a breach of a rule on betting applied by that sport governing body.


Licence Condition 15.3.1 – Information provision

Licensees are required to provide the Commission on request with such information as the Commission may require about the use made of facilities provided in accordance with the licence, including … the licensee’s policies in relation to, and experiences of, problem gambling.


Licence Condition 2.3.1 – Technical standards

 Licensees must comply with the Commission’s technical standards and with requirements set by the Commission relating to the timing and procedures for testing.

 For example, remote gambling and software technical standard 11 requires licensees to implement measures intended to deter, prevent, and detect collusion and cheating. Gambling systems must retain a record of relevant activities to facilitate investigation and be capable of suspending or disabling player accounts or player sessions. Operators must monitor the effectiveness of their policies and procedures.


* [Gambling regulation and the General Data Protection Regulation (GDPR)](#)
* [General approach of the Commission to compliance](#general-approach-of-the-commission-to-compliance)
* [Retention of data](#retention-of-data)
* [Specific scenarios considered](#specific-scenarios-considered)
* [Marketing to consumers](#marketing-to-consumers)
* [Annex A](#annex-a)

 [Print this guide](#)


Gaming machine payouts: return-to-player

##  This refers to Key event 17

 Your gaming machines must clearly display the percentage return-to-player figure (% RTP). You must ensure that all the machines you make available display the correct percentage return to player figure (%RTP), this is required by the Circumstances of Use Regulations.
>  [Gaming machine (Circumstances of Use) Regulations 2007 (opens in a new tab)](https://www.legislation.gov.uk/uksi/2007/2319/contents/made)
>
>

 If the label on the machine is in a position where it may be possible to be removed or covered up make sure you regularly check the required information is still displayed correctly and clearly for the benefit of players.

##  Considerations regarding how to remedy a fault


Any gaming system fault which has resulted in under or overpayments to a player.


Considerations regarding how to remedy a fault

 You should not benefit from a fault. You should endeavour to return the money to customers in a timely manner. If the individuals affected cannot be identified, you are encouraged to make efforts to repay the money to the group of consumers most likely to contain those affected. The money should be repaid in a way that would not incentivise additional gambling and is not based on a minimum-spend requirement or threshold.

 We expect consumers to be informed of steps taken and the reason for this only after all the money has been returned, and not during this period. This will avoid operators being able to benefit through promotion or advertising, which is unacceptable.

 If you cannot return the money to consumers in line with these aims, you should divest yourselves of the profits and this should be paid to a responsible gambling charity.

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 As these are gaming machines, a premises licence or permit from the local authority is needed to site them. Depending on the type of premises, some unlicensed operators will also need to apply for an operating licence.

 Although the majority of this type of machine are operated as cranes within adult gaming and family entertainment centres under the category D stake and prize limits, there has been a trend where they are being offered to the public. When offered to the public, they are presented as a skill machine as opposed to a gaming machine, without the necessary permissions to do so. This occurs in pubs, shopping centres, motorway service areas and other similar venues.

 Machines which are capable of being used as a gaming machine, whether or not they are currently operating as a gaming machine, are classified as a gaming machine. For example, a machine fitted with a compensator, which allows it to be converted from a skill machine to a gaming machine, is classified as a gaming machine.

 You can see a more detailed definition of gaming machines in  [section 235 of the Gambling Act (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/235)

 Machines using a mechanical arm or similar device to select a prize and which employ a compensator unit to determine the percentage pay-out of the machine, need to be clearly marked as a gaming machine (skill and chance combined). They also may only be operated in premises where the necessary permissions are in place.

 Operators supplying or maintaining these types of machine must have an operator’s licence. Check the  [public register](/public-register)  for those who hold or have applied for an operators’ licence.

 !  **Warning  Where the relevant permission has not been granted the machine should be removed from the site immediately.**  [Previous page
 Non-complex cat D gaming machines (crane grabs)](/licensees-and-businesses/guide/non-complex-cat-d-gaming-machines-crane-grabs)  [Next page
 Machine technical standards](/licensees-and-businesses/guide/page/machine-technical-standards)

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 Where a machine determines whether a player has an opportunity to win a prize partly by chance (using a compensator or control system to control the payout) but also by a player using a degree of skill to ultimately win the prize, the machine would be considered a game of chance and skill combined.

 This is defined by  [section 6(2)(a) of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/6)  as a game of chance and will therefore be defined as a gaming machine.

 We will consider amending the definition of category D non-complex crane machines in our Technical Standards to replicate the definition of crane in  [The Categories of Gaming Machine (Amendment) Regulations 2009 (No 1502) (opens in a new tab)]( https://www.legislation.gov.uk/uksi/2009/1502/contents/made)  .

 A crane grab machine is a reference to a non-money prize machine in respect of which:

* every prize which can be won as a result of using the machine consists of an individual physical object (such as a stuffed toy)
* whether or not a person using the machine wins a prize is determined by the person’s success or failure in manipulating a device forming part of the machine so as to separate, and keep separate, one or more physical objects from a group of such objects.

 In general, the only requirement needed to make existing crane grab machines compliant with this regulation and our technical standards would be to include a display notice on the machine stating that it is a category D gaming machine with the proviso that the stake or prize does not exceed the statutory limits of £1-£50 respectively and that prizes are totally non-monetary.

 Suppliers/operators will be aware that other requirements such as Gamcare information (or equivalent) must also be met.

>  Should the industry attempt to exploit the situation in a manner deemed undesirable or outside the spirit of that intended then we may review our position in this matter.
>
>

 [Previous page
 Classification of crane machines](/licensees-and-businesses/guide/page/classification-of-crane-machines)  [Next page
 Limited prize machines](/licensees-and-businesses/guide/page/limited-prize-machines)

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 Limited prize machines have been around for many years and the most recent type seems to be the ‘play until you win’ or ‘prize every time’ crane machine, although there may be other types.

 [Section 249 of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/249)  states that a person does not commit an offence under section 37 or 242 (of the Gambling Act 2005) if they make a gaming machine available for use by an individual; and the individual does not, by using the machine, acquire an opportunity to win a prize of a value in excess of the amount paid for or in connection with use of the machine.

 The explanatory notes to the Gambling Act elaborate on this a little and say a ‘limited prize’ is “a prize whose value does not exceed any payment made for use of the machine”. That is, the prize value does not exceed the cost to play.

 This exemption means that a licence or permit is not required to cover the siting of a limited prize machine.

 [Previous page
 Machine technical standards](/licensees-and-businesses/guide/page/machine-technical-standards)  [Next page
 Skill with prize machines (SWPs)](/licensees-and-businesses/guide/page/skill-with-prize-machines)

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 Applies to:

 All operating licences

 A key event is an event that could have a significant impact on the nature or structure of a licensee’s business. Licensees must notify the Commission, in such form or manner as the Commission may from time to time specify, of the occurrence of any of the following 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  [1](#1521-1)  .

 Operator status

1. Any of the following applying to a licensee, any person holding a key position for a licensee, a group company or a shareholder or member (holding 3% or more of the issued share capital of the licensee or its holding company): • presenting of a petition for winding up • making of a winding up order • entering into administration or receivership • bankruptcy (applying to individuals only) • sequestration (applicable in Scotland), or • an individual voluntary arrangement.

 Relevant persons and positions

2. In the case of licensees who are companies or other bodies corporate having a share capital, the name and address of any person who (whether or not already a shareholder or member) becomes a shareholder or member holding 3% or more of the issued share capital of the licensee or its holding company.
3. The taking of any loan by the licensee, or by a group company who then makes an equivalent loan to the licensee, from any person not authorised by the Financial Conduct Authority: a copy of the loan agreement must be supplied.
4. The appointment of a person to, or a person ceasing to occupy, a ‘key position’ (including leaving one position to take up another). A ‘key position’ in relation to a licensee is:

- in the case of a small-scale operator, a ‘qualifying position’ as defined in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006
- in the case of an operator which is not a small-scale operator, a ‘specified management office’ as set out in (current) LCCP licence condition 1.2
- a position where the holder of which has overall responsibility for the licensee’s anti-money laundering and/or terrorist financing compliance, and/or for the reporting of known or suspected money laundering or terrorist financing activity.
- any other position for the time being designated by the Commission as a ‘key position’. (Notification is required whether or not the person concerned is required to hold a personal management licence and whether or not the event notified requires the licensee to apply for a variation to amend a detail of their licence.)

 Financial events

5. Any material change in the licensee’s banking arrangements, in particular the termination of such arrangements or a particular facility and whether by the licensee or the provider of the arrangements.
6. Any breach of a covenant given to a bank or other lender.
7. Any default by the licensee or, where the licensee is a body corporate, by a group company in making repayment of the whole or any part of a loan on its due date.
8. Any change in the licensee’s arrangements as to the methods by which, and/or the payment processors through which, the licensee accepts payment from customers using their gambling facilities (this key event applies to remote casino, bingo and betting operating licences, except ancillary and remote betting intermediary (trading room only) licences).

 Legal or regulatory proceedings or reports

9. The grant, withdrawal or refusal of any application for a licence or other permission made by the licensee, or in the case of a licensee which is a body corporate, any group company of theirs, to a gambling regulator in another jurisdiction. In the case of a withdrawal or refusal of the application, the licensee must also notify the reasons for such withdrawal or refusal. (This condition does not apply to applications for licences or other permissions to carry on activities which would fall outside the scope of a Gambling Commission operating licence if carried out in Britain or with customers in Great Britain.)
10. Any investigation by a professional, statutory, regulatory or government body (in whatever jurisdiction) into the licensee’s activities, or the activities of a person in a ‘key position’, where such an investigation could result in the imposition of a sanction or penalty which could reasonably be expected to raise doubts about the licensee’s continued suitability to hold a Gambling Commission licence.
11. Any criminal investigation by a law enforcement agency in any jurisdiction in which the licensee, or a person in a ‘key position’ related to the licensee, is involved and where the Commission might have cause to question whether the licensee’s measures to keep crime out of gambling had failed.
12. The referral to the licensee’s Board, or persons performing the function of an audit or risk committee, of material concerns raised by a third party (such as an auditor, or a professional, statutory or other regulatory or government body (in whatever jurisdiction)) about the provision of facilities for gambling: a summary of the nature of the concerns must be provided.
13. The imposition by the licensee of a disciplinary sanction, including dismissal, against the holder of a personal licence or a person occupying a qualifying position for gross misconduct; or the resignation of a personal licence holder or person occupying a qualifying position following commencement of disciplinary proceedings in respect of gross misconduct against that person.
14. The commencement (in whatever jurisdiction) of any material litigation against the licensee or, where the licensee is a body corporate, a group company: the licensee must also notify the outcome of such litigation.
15. The making of a disclosure pursuant to section 330, 331, 332 or 338 of the Proceeds of Crime Act 2002 or section 19, 20, 21, 21ZA, 21ZB or 21A of the Terrorism Act 2000 (a suspicious activity report): the licensee should inform the Commission of the unique reference number issued by the United Kingdom Financial Intelligence Unit of the National Crime Agency in respect of each disclosure and for the purposes of this key event the five working day period referred to above runs from the licensee’s receipt of the unique reference number. The licensee should also indicate whether the customer relationship has been discontinued at the time of the submission.

 Gambling facilities

16. Any security breach to the licensee’s environment that adversely affects the confidentiality of customer data; or prevents the licensee’s customers, staff, or legitimate users from accessing their accounts for longer than 12 hours.
17. Where a gaming system fault has resulted in under or overpayments to a player (this includes instances where a fault causes an incorrect prize/win value to be displayed).
18. In the case of remote gambling, the commencement or cessation of trading on website domains (including mobile sites or mobile device applications) or broadcast media through which the licensee provides gambling facilities (including domains covered by ‘white label’ arrangements). In this condition: ‘body corporate’ has the meaning ascribed to that term by section 1173 of the Companies Act 2006 or any statutory modification or re-enactment thereof

- in respect of a company, ‘holding company’ and ‘subsidiary’ have the meaning ascribed to that term by section 1159 of the Companies Act 2006 or any statutory modification or re-enactment thereof
- a ‘group company’ is any subsidiary or holding company of the licensee and any subsidiary of such holding company.

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

##  References


1  Key events are to be reported to us online via the  [‘eServices’](/service/operator-eservices)  digital service on our website.


12.1.1 - Anti-money laundering - Prevention of money laundering and terrorist financing

 Applies to:

 All operating licences except gaming machine technical and gambling software licences

1. Licensees must conduct an assessment of the risks of their business being used for money laundering and terrorist financing. Such risk assessment must be appropriate and must be reviewed as necessary in the light of any changes of circumstances, including the introduction of new products or technology, new methods of payment by customers, changes in the customer demographic or any other material changes, and in any event reviewed at least annually.
2. Following completion of and having regard to the risk assessment, and any review of the assessment, licensees must ensure they have appropriate policies, procedures and controls to prevent money laundering and terrorist financing.
3. Licensees must ensure that such policies, procedures and controls are implemented effectively, kept under review, revised appropriately to ensure that they remain effective, and take into account any applicable learning or guidelines published by the Gambling Commission from time to time.


Reminder to licensees regarding white label gambling websites

 The Gambling Commission is reminding remote operating licence holders of their obligations when operating gambling websites, including white labelled sites.

 The responsibility for compliance sits with the licence holder and cannot be transferred to any other party. Failure to ensure that at all times:

* a licensee’s business is conducted in a way which minimises the risk to the licensing objectives
* our  [Licence Conditions and Codes of Practice (LCCP)](/licensees-and-businesses/lccp/online)  are being complied with.

 !  **Warning  Failure to ensure these may bring into question the suitability of an operator to hold a licence.**  Licensees must know their customers and be able to demonstrate knowledge, oversight and proactive interactions where appropriate. Any interventions must be completed in a timely manner


 SRCP 1.1.2 - Responsibility for third parties makes clear that licensees are responsible for the third parties that they contract with. It also requires licensees to ensure that any contracted third parties conduct themselves in so far as they carry out activities on behalf of the licensee as if they were bound by the same licence conditions and subject to the same codes of practice as the licensee.

 The Commission expects that licensees will obtain the necessary assurance by conducting adequate due diligence on the third party to ensure (amongst other things) that they are competent and reliable. Any licensee that relies on a third party to conduct any aspect of the licensee’s business related to the licensed activities must ensure it has sufficient oversight and controls in place to ensure that all activities are carried out in accordance with the  [Licence Conditions and Codes of Practice (LCCP)](/licensees-and-businesses/lccp/online)  , notably, but not exclusively, social responsibility and anti-money laundering requirements.

 !  **Warning  Failure to maintain adequate control of third parties can result in regulatory action including suspension or the loss of the operating licence.**  Finally – operators are aware that a licence is required to provide facilities for gambling (unless a specified exemption applies). Operators must ensure that their arrangements with third parties do not result in an offence under  [section 33 of the Gambling Act 2005 (opens in a new tab)](https://www.legislation.gov.uk/ukpga/2005/19/section/33)  .

 The Commission intends to publish further guidance in due course.

---

 Last updated: 28 January 2021

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1.1.1 - Qualified persons – qualifying position

 Applies to:

 All operating licences, except ancillary remote licences, issued to small-scale operators

1. In this condition the terms ‘small-scale operator’, ‘qualifying position’ and ‘qualified person’ have the meanings respectively ascribed to them by the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006.
2. Schedule X  [1](#111-1)  lists those individuals notified to the Commission as qualified persons.
3. If, whilst the licensee remains a small-scale operator, an individual begins or ceases to occupy a qualifying position in relation to the licensee, the licensee must within 28 days apply to the Commission under section 104(1)(b) of the Act for amendment of the details of the licence set out in Schedule X  [1](#111-1)  .
4. An application for amendment under section 104(1)(b) of the Act may be made in advance of an individual beginning or ceasing to occupy a qualifying position provided it specifies the date from which the change to which it relates is to be effective.
5. In this condition ‘qualified person’ has the same meaning as in the Gambling Act 2005(Definition of Small-scale Operator) Regulations 2006.
##  References


1  The schedules mentioned here will be attached to individual licences.


 Applies to:

 All non-remote general betting operating licences issued to small-scale operators

1. Schedule Y  [1](#111-1)  to this licence lists those of the licensee’s employees whose details have been provided to the Commission as authorised by the licensee to accept bets on the licensee’s behalf on a track otherwise than under the supervision of a qualified person present on the same track.
2. Should the licensee wish to add an individual to the list or remove the name of an individual from the list the licensee must make application to the Commission under section 104(1)(b) of the Act for amendment of that detail of the licence. Any employee the licensee wishes to add to the list may act unsupervised pending amendment of the licence provided a valid amendment application has been lodged with the Commission.
3. In this condition ‘qualified person’ has the same meaning as in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006.
##  References


1.2.1 - Specified management offices – personal management licences

 Applies to:

 All casino, bingo, general and pool betting, betting intermediary, gaming machine general, gaming machine technical, gambling software and lottery managers licences, except ancillary remote licences

1. Subject to 6 and 7 below, licensees must ensure:
	1. that each individual who occupies one of the management offices specified in 2 below in respect of the licensee or in connection with the licensed activities holds a personal licence authorising the performance of the functions of that office (hereafter ‘a personal management licence’); and
	2. that at least one person occupies at least one of those offices
2. The specified management offices are those offices (whether or not held by a director in the case of a licensee which is a company, a partner in the case of a licensee which is a partnership or an officer of the association in the case of a licensee which is an unincorporated association) the occupier of which is by virtue of the terms of their appointment responsible for:
	1. the overall management and direction of the licensee’s business or affairs
	2. the licensee’s finance function as head of that function
	3. the licensee’s gambling regulatory compliance function as head of that function
	4. the licensee’s marketing function as head of that function
	5. the licensee’s information technology function as head of that function in so far as it relates to gambling-related information technology and software - oversight of the day to day management of the licensed activities at an identified number of premises licensed under Part 8 of the Act or across an identified geographical area
	- in the case of casino and bingo licences only, oversight of the day to day management of a single set of premises licensed under Part 8 of the Act.
3. The person responsible for the licensee’s gambling regulatory compliance function as head of that function shall not, except with the Commission’s express approval, occupy any other specified management office.
4. Licensees must take all reasonable steps to ensure that anything done in the performance of the functions of a specified management office is done in accordance with the terms and conditions of the holder’s personal management licence.
5. Where an individual is authorised by a personal licence and that licence comes under review under section 116(2) of the Act, the operating licensee must comply with any conditions subsequently imposed on that licence by the Commission about redeployment, supervision, or monitoring of the individual’s work and any requirements of the Commission in respect of such matters applicable during the period of the review.
6. Paragraphs 1 to 5 above shall not apply to a licensee for so long as the licensee is a ‘small- scale operator’ as defined in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006 (‘the Regulations’).
7. During the period of 3 years commencing with the date on which a licensee ceases to be a small-scale operator paragraphs 1 to 6 above shall apply subject to the proviso that the phrase ‘each individual’ in paragraph 1a shall not include any individual who was a ‘qualified person’ (as defined in the Regulations) in relation to the licensee 28 days immediately prior to the licensee ceasing to be a small-scale operator.


1.2.2 - Specified management offices – casino personal functional licences

 Applies to:

 All non-remote casino operating licences, except ancillary remote licences.

1. In addition to paragraphs 1 to 6 in licence condition 1.2.1, licensees must ensure that if any of the following operational functions:
	1. dealer in respect of casino games
	2. cashier
	3. inspector
	4. security staff employed to watch gaming
	5. supervisor of gaming activities is performed in connection with the licensed activities, it is performed by an individual who holds a personal licence authorising performance of the function (hereafter ‘a personal functional licence’). Licensees must take all reasonable steps to ensure that anything done in the performance of those functions is done in accordance with the terms and conditions of the personal functional licence.


1.2.3 - Specified management offices – lottery personal management licences

 Applies to:

 All lottery operating licences issued to non-commercial societies and local authorities

1. Subject to 5 below, licensees must ensure that the individual who occupies the management office specified in 2 below in or in respect of the licensee or in connection with the licensed activities holds a personal licence authorising the performance of the functions of that office (hereafter ‘a personal management licence').
2. The specified management office is that director’s post in the case of a licensee which is a company, that partner in the case of a licensee which is a partnership, or that office in a licensee which is an unincorporated association or local authority, the occupier of which has overall management responsibility for the promotion of the lottery.
3. Licensees must take all reasonable steps to ensure that anything done in the performance of the functions of a specified management office is done in accordance with the terms and conditions of the holder’s personal management licence.
4. Where an individual is authorised by a personal licence and that licence comes under review under section 116(2) of the Act, the operating licensee must comply with any conditions subsequently imposed on that licence by the Commission about redeployment, supervision, or monitoring of the individual’s work and any requirements of the Commission in respect of such matters applicable during the period of the review.
5. Paragraphs 1 to 4 above shall not apply to a licensee for so long as the licensee is a ‘small- scale operator’ as defined in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006.


2.1.1 - Access to (and provision of data from) key equipment

 Applies to:

 All remote casino, bingo and betting licences other than ancillary licences and remote betting intermediary (trading room only) licences

1. Licensees must, on request, permit an enforcement officer to inspect any of their remote gambling equipment and/or provide to the Commission copies of data held on such equipment in such format and manner as the Commission may request.


 Applies to:

 Remote casino licences (except ancillary remote and casino (game host) licences)

 All licensees who provide facilities for peer to peer gaming in circumstances in which they do not contract directly with all of the players using those facilities (‘network operators’) must have, put into effect and monitor the effectiveness of, policies and procedures designed to ensure that:

1. every player using the facilities in Great Britain (‘a domestic player’) is doing so pursuant to a contract entered into between that player and the network operator, or that player and another holder of a Gambling Commission remote casino operating licence;
2. every player who is not a domestic player but who participates in a game of chance in which a domestic player also participates is doing so pursuant to a contract between that player and the network operator, or that player and another holder of a Gambling Commission remote casino operating licence, or a gambling operator not licensed by the Gambling Commission through which participants use the facilities outside Great Britain and which:
	1. holds all licences or permissions (if any) required in relation to its provisions of facilities for peer to peer gaming by the laws of the state or states in which it is domiciled or incorporated;
	2. has been approved by the network operator, after conducting due diligence enquires into those individuals who appear to the network operator to have a material financial interest in it, as suitable to provide those facilities; and in particular,
	3. has in place policies and procedures in respect of the identification of customers which in the network operator’s reasonable opinion satisfy requirements as to the customer due diligence broadly equivalent to those set out in Directive 2005/60/EC (‘the Third Money Laundering Directive’) or any subsequent replacement for re-enactment thereof;
3. the arrangements between the network operator and any remote casino licence holder through which domestic players access their facilities, and with gambling operators not licensed by the Gambling Commission through which players use their facilities outside Great Britain, provide in clear terms which operator is to be responsible for the handling of which categories of customer complaint and dispute; in particular such arrangements must provide how a dispute involving players from more than one jurisdiction is to be handled;
4. the network operator’s arrangements for the sharing of information both with any remote casino licence holder through which domestic players access their facilities and with gambling operators not licensed by the Gambling Commission through which participants use the facilities outside Great Britain are such as to enable all parties to discharge effectively their respective regulatory obligations, in particular in relation to:
	1. prevention of money laundering; combating the financing of terrorism; and where applicable, the Proceeds of Crime Act.
	2. investigation of suspected cheating,
	3. combating of problem gambling, and
	4. investigation of customer complaints.


 Applies to:

 All remote casino, bingo, and betting licences (except ancillary remote and host licences)

1. Subject to 2 below, all licensees who provide facilities for gambling, other than peer to peer gaming, in circumstances in which they do not contract directly with all of the participants using those facilities (‘network operators’) must have, put into effect and monitor the effectiveness of policies and procedures designed to ensure that:

- every participant using the facilities in Great Britain (‘a domestic customer’) is doing so pursuant to a contract entered into between that player and the network operator, or that player and another holder of a Gambling Commission remote operating licence of the same kind as that held by the network operator (‘a relevant licence’);
- the arrangements between the network operator and any holder of a relevant licence through which domestic customers access their facilities, and with gambling operators not licensed by the Gambling Commission through which customers use their facilities outside Great Britain, provide in clear terms which operator is to be responsible for the handling of which categories of customer complaint and dispute; in particular such arrangements must provide how a dispute involving customers from more than one jurisdiction is to be handled;
- the network operator’s arrangements for the sharing of information both with any holder of a relevant licence and with gambling operators not licensed by the Gambling Commission through which participants use the facilities outside Great Britain are such as to enable all parties to discharge effectively their respective regulatory obligations, in particular in relation to:
	1. prevention of money laundering; combating the financing of terrorism; and where applicable, the Proceeds of Crime Act,
	2. investigation of suspected cheating,
	3. combating of problem gambling, and
	4. investigation of customer complaints.

- Paragraph 1 above does not apply to the provision to the holder of a non-remote bingo operating licence (H) of facilities for the playing of games of bingo organised by H in premises in respect of which a bingo premises licence has effect (eg the National Bingo Game).


 Applies to:

 All casino (game host), bingo (game host), general betting (host) (real events) and general betting (host) (virtual events) licences

1. Subject to 2 below, all licensees who provide facilities for gambling in circumstances in which they do not contract directly with any of the participants using those facilities (‘hosts’) must ensure that:

- every participant using the facilities in Great Britain (‘a domestic customer’) is doing so pursuant to a contract entered into between that player and the holder of a Gambling Commission remote casino, bingo, general betting (real events) or general betting (virtual events) operating licence (‘a relevant licence’);
- the arrangements between the host and any holder of a relevant licence through which domestic customers access their facilities, and with gambling operators not licensed by the Gambling Commission through which customers use their facilities outside Great Britain, provide in clear terms which operator is to be responsible for the handling of which categories of customer complaint and dispute; in particular such arrangements must provide how a dispute involving customers from more than one jurisdiction is to be handled;
- the host’s arrangements for the sharing of information both with any holder of a relevant licence and with gambling operators not licensed by the Gambling Commission through which participants use the facilities outside Great Britain are such as to enable all parties to discharge effectively their respective regulatory obligations, in particular in relation to:

	1. prevention of money laundering; combating the financing of terrorism; and where applicable, the Proceeds of Crime Act,
	2. investigation of suspected cheating,
	3. combating of problem gambling, and
	4. investigation of customer complaints.

- Paragraph 1 above does not apply to the provision to the holder of a non-remote bingo operating licence (H) of facilities for the playing of games of bingo organised by H in premises in respect of which a bingo premises licence has effect (eg the National Bingo Game).