Poll: Is the UK's grey market rule workable?
Gambling Commission will require operators to show evidence of probity if operating in international jurisdictions
In one of its recent updates, the Gambling Commission revealed it will be requesting that operators wishing to obtain a UK licence must first provide details of international revenues streams and evidence to prove the legality of such business.
The regulator has placed a threshold on this requirement, with operator required to provide evidence if a single jurisdiction contributes more than 3% of total revenues, or more than 10% for companies with annual revenues of less than £5m.
Questions have been raised about the practicalities of such a measure, with Remote Gambling Association chief executive Clive Hawkswood raising the prospect of two operators taking an opposing view regarding the legality of operating in a particular country.
However, late last week the Gambling Commission addressed this concern by stating that operators would only have to offer a “coherent arguable rationale” if operating in grey markets and not hide behind “wilful ignorance”.
The move will be seen as the regulator’s response to the PoC regime’s detractors, such as the Gibraltar Betting and Gaming Association which has argued that a UK remote licence could be used by some international operators as a seal of approval when targeting other jurisdictions.
The regulator has yet to make clear what will happen if operators are unable to meet this new condition, but it plans to release further guidance in the coming weeks.
For most of the larger operators, the 3% level shouldn’t prove too much of an obstacle, however others may have to pull out of certain jurisdictions in the coming months or ensure they have a solid argument for why they should continue to operate in areas where the lines of legality are somewhat blurred.
With this in mind, this week’s poll asks whether you believe the requirement is workable and enforceable. Have your say on the right-hand side of the page.