The UK Gambling Commission has issued a reminder on compliance responsibility for remote operating licence holders.
The UK’s gambling regulatory body has issued a statement to remind remote operating licence holders that they are accountable for any clients’ regulatory breaches, including white label gambling sites. The Commission reiterates the fact that “compliance sits with the licence holder and cannot be transferred to any other party.”
Both licence holders and any third parties with whom they work must conduct business in a way that is compliant with UKGC licensing objectives, as well as the Licensing Conditions and Codes of Practice (LCCP).
However, licensees and third parties must also comply to other areas of UK Gambling law. The Gambling Commission states that “operators must ensure that their arrangements with third parties do not result in an offence under section 33 of the Gambling Act 2005.”
That is to say that both licence holders and third parties must be licensed accordingly to provide facilities for gambling. It warns that regulatory action, such as licence suspension, may be taken for failure to make sure of this.
Recent events, such as the suspension of the EveryMatrix UKGC licence for it’s handling of potentially addictive players, as well as the investigation into FSB Technology (UK), demonstrate the seriousness of this appeal.
The EveryMatrix suspension is an example of how a whole platform of white label operators may be affected by suspected misconduct, given that none of the company’s operators may accept UK customers during the suspension.
The reminder says that “licensees must know their customers and be able to demonstrate knowledge, oversight and proactive interactions where appropriate.” While social responsibility and anti-money laundering requirements are the main concerns in terms of this compliance, these are not the only areas to focus on, according to the Gambling Commission.
Further guidance is yet to be published, but UKGC licence holders should continue to conduct “adequate due diligence” on all white label partnerships in order that all third-parties are both competent and reliable.