Latest from UK Gambling Commission: 'Licensing, Compliance and Enforcement'

A new consultation document from the U.K. Gambling Commission proposes ways the Commission could use its power under new gambling laws to monitor and regulate British gambling operators and suggests courses of action dealing with operators who are not in compliance.

The document, titled " Licensing, Compliance and Enforcement," has been released in preparation for the Commission becoming the country's gambling regulator when the Gambling Act 2005 comes into full force in September 2007.

The first part of the document addresses the Commission's approach to licensing and explains that the key individuals, shareholders and major investors involved in licensed gambling business will be subject to a range of checks, including criminal record checks, integrity checks and financial checks. The licensing section also explains how the Commission will evaluate applications, what operators should do if there is a change in corporate control, how licensing decisions will be delegated to individuals and panels within the Commission, how licenses will be issued and how personal licenses can be maintained and renewed.

Part 2 of the document deals with operator compliance issues. This section explains key elements of the compliance process as well as how the Commission will assess risk, how it will work with the gambling industry, what sorts or information it will require to insure compliance and how it will carry on monitoring of gambling premises. The Commission plans for its staff to visit casinos, bingo clubs, betting shops, amusement arcades and online gambling sites on a regular basis. Inspections of the gambling premises and systems will be carried out through spot checks, scheduled examinations and covert investigative methods, such as mystery shopping.

The third section of the document lays out how the Commission will take enforcement action against operators who fail to comply with the Gambling Act 2005 and what sorts of penalties they will face. The Commission will be able to place sanctions against operators, including license suspension or revocation and potentially unlimited fines. This section also addresses the enforcement framework, the criminal regime, criminal or regulatory investigation, regulatory review, urgent suspensions and voluntary settlements.

"We have three clear regulatory objectives: to keep crime out, to make sure gambling is fair and open and to protect children and vulnerable people from harm," stated Gambling Commission Chairman Peter Dean. "We will be risk-based, proportionate and fair in our approach to regulation, and our processes will be as streamlined and efficient as possible. But we will not hesitate to use out extensive legal powers to prosecute any illegal gambling activity, or to take action against licensed operators who fail to comply with the new rules we have set out."

"Licensing, Compliance and Enforcement" is a consultation document, and the measures laid out within it are, therefore, only proposals at the moment. The Commission welcomes all interested parties and individuals to submit their thoughts on any or all parts of the document no later than Aug. 22. The Commission says it will soon post a partial Regulatory Impact Assessment on the proposals on its Web site, and in October it will publish a summary of consultation responses.

Click here to view "Licensing, Consultation and Enforcement."