The Gambling Commission recently announced a significant shift in its oversight process, with the introduction of mandatory quarterly regulatory returns for licensed gambling operators. The adjustment follows a thorough review and consultation period conducted by the commission during Autumn 2023, centering on suggested amendments to the Licence Conditions and Codes of Practice (LCCP).
A vital tool in the regulatory body’s arsenal, these regular returns are essential not only for confirming that licensees fall within the appropriate fee brackets but are also crucial in collecting fundamental data about the gambling industry. This move is positioned to improve the publishing of accurate industry statistics and provide deeper insights into the sector’s operation.
Prompted by feedback from the extensive consultation, which received 45 individual responses from various industry stakeholders, the commission has resolved to revise General and regulatory returns Code Provision 15.3.1, thus making the submission of this data a quarterly requirement for all licensees.
Scrutinizing the consultation response, the Gambling Commission observed that nearly half of the respondents were supportive of the change. Encouragingly, a diverse group—from gambling business representatives to professional bodies, charities, and industry insiders—voiced agreement or strong agreement with the proposed quarterly schedule.
Proponents of the updated system believe that this more frequent reporting will not only provide clearer and more timely insights into gambling-related harm but will also foster more efficient data handling, particularly for those managing multiple types of licenses. There is a consensus among them that regular reporting will streamline the process, simplify submissions by eliminating numerous data fields, and may not significantly increase the costs for operators as several larger entities are already accustomed to a quarterly submission routine.
On the contrary, roughly a third of the stakeholders expressed resistance to the proposal, anticipating that it would ramp up administrative responsibilities and costs. For those overseeing lotteries, concerns were raised about the potential diversion of financial resources from charitable causes, estimating the yearly cost of returns could triple.
Critics also highlighted a possible contradiction with the Gambling Commission’s intention to foster a ‘risk-informed’ approach in its dealings with operators. They argued that more frequent reports wouldn’t necessarily yield better insights, emphasizing that annual returns capture changes over time more effectively. Furthermore, without additional support, these changes could inadvertently lead to increased non-compliance penalties due to missed deadlines.
In response to the concerns, some have suggested tailoring the reporting frequency based on an operator’s risk profile. This framework would have higher-risk operators submitting quarterly data, while lower-risk entities could maintain an annual schedule.
Addressing the outcome of this consultation, the Gambling Commission underscores that quarterly reports will substantially influence its budgeting accuracy and forecasting capabilities. This systematic change is viewed as a stepping stone towards obtaining a more indepth understanding of the changing landscape of the gambling sector, aligning with the government’s regulatory ambitions outlined in its latest White Paper.
The commission firmly believes that a risk-based, evidence-led, and outcomes-focused regulatory framework, supported by uniformly aligned reporting periods across the industry, will enhance the quality of collected data. This will eliminate the need to extrapolate operator data to fit within the financial year.
Acknowledging some licensees’ concerns over potential heightened administrative demands and related costs, especially for lottery operators, the Gambling Commission stresses its commitment to mitigating these issues. Finally, despite licensee proposals seeking a submission window of 42 days, the commission has settled on a 28-day period for the collection and submission of quarterly data, deeming it sufficient for the task at hand.
