Gambling Commission prepares for delay to licensing
UK regulator says operators will be afforded a "transitional period" as legislation nears
The Gambling Commission is preparing for the “likely” scenario in which operators may fail to gain a licence in time for the implementation of the Gambling Bill which is currently working its way through Parliament.
The regulator had originally intended to process all full operator licence applications in the period between Royal Assent of the Bill and it coming into force as expected on 1 May.
However, the Commission has since conceded that, due to the short time period between inviting applications and the commencement date, applications are unlikely to be processed in time.
Operators based in either Gibraltar or any of the white-listed jurisdictions may apply for a “continuation licence” from a date two months after Royal Assent, which will enable them to continue to trade until their full licence has been determined.
“As we have already set out in detail on our website, whatever the final date for implementation is next year, B2C operators who have made a valid operating licence application will be able to continue to operate for a transitional period until their licence application has been determined,” a Gambling Commission spokesperson told eGaming Review.
These continuation licences will require applicants to complete an abbreviated version of the new licence application form and those successful must then provide the remainder of the information required for a full licence within a “reasonable” period.
The regulator had previously stated it expects to see between 150-200 full licence applications as it moves to a point of consumption regime, although this is thought by some to be a conservative estimate with the regulator set to struggle with the eventual volume.
With the Commission admitting licences won’t be ready in time for when the new regulations come into force, questions are being asked as to why the start date cannot be delayed.
“I know the Commission has also been asked why there has been pressure for the 1 May start for the new regulatory system when the change to point of consumption tax will not come in until December, but the answer was simply that tax is irrelevant to the regulatory changes,” Susan Biddle, leading gaming lawyer and consultant at Pinsent Mason, said.
Despite the debate, the Commission has yet to rubber-stamp 1 May as the implementation date and will be unable to do so until the Bill, which is on course to reach the House of Lords in December, receives Royal Ascent and is not halted by any subsequent legal challenges.
“The 1 May date is basically stemming from the fact that it is anticipated the Bill will receive Royal Assent by end of January,” Ash Averill, gaming lawyer associate at DLA Piper, said.
“Two months after that the commission can start receiving advance applications and three months after is go-live. There is no magic to the date – it’s just based on parliamentary timetable,” he added.
The Gambling Bill, which will require all operators wishing to take bets from UK customers and advertise their services in the country to obtain a UK licence, this week passed through the committee stage of the parliamentary process unaltered despite 16 proposed amendments from the opposition.