Gambling Commission edges towards liquidity sharing
UK regulator says it wants more control over poker networks as it reveals proposed changes to LCCP ahead of Gambling Bill implementation
The Gambling Commission has called for controls on poker and other networks as part of a series of proposed amendments to the Licence Conditions and Codes of Practice (LCCP).
The proposal is viewed by observers as further evidence the regulator is moving towards allowing poker networks that will fall under its regulatory remit to share liquidity across borders and operators.
Leading gaming lawyer and Pinsent Masons consultant Susan Biddle told eGaming Review that, if implemented, liquidty sharing would only apply to poker and not to other forms of liquidity such as bingo or pool betting.
“Limiting poker liquidity to a national pool has caused commercial challenges in other EU countries – including the unintended result of encouraging the ‘grey’ market, and so reducing consumer protection, because unregulated operators may offer more attractive odds than regulated operators who can offer only limited liquidity,” she said.
“It is therefore probably good news that the Commission does not want to limit liquidity to GB players only.”
The amendments also include plans for the Commission to give greater guidance to operators to ensure they work in an “open and cooperative manner” and to strengthen the requirements placed on operators with regards to the protection of customer funds in the event of insolvency or fraud.
According to the regulator, the proposed changes are designed to “enhance consumer protection and improve gambling regulation”.
Final decisions following consultation on the changes will be made and announced early in 2014, with most of the changes expected to take effect next spring.
“We want to collect people’s views on the proposals during the public consultation which will run until early December,” a Gambling Commission spokesperson said.
Interested parties have until 4 December to respond with consultation workshops planned for the autumn.
In May, the UK government introduced The Gambling (Licensing and Advertising) Bill into Parliament which will require operators that transact with or advertise to British consumers to obtain an operating licence from the Commission.
Some amendments to the LPPC were deemed necessary to reflect both the expected range and structure of the remote gambling sector ahead of implementation of the Bill, which is expected in April 2014.