Surviving a Gambling Commission Licence Review: A Guide for Operators

7 Apr

Introduction

Running a gambling business comes with significant regulatory responsibilities. A licence review by the Gambling Commission is not just an administrative hurdle—it can have serious consequences for your business, from financial penalties to potential licence suspension. If you’re facing a review, it’s crucial to approach the process with diligence, strategy, and a clear understanding of your obligations.

Understanding the Licence Review Process

A review can be triggered for a variety of reasons—compliance breaches, customer complaints, or even just the Commission deciding they want to have a closer look at your operations.

Under section 116 of the Gambling Act 2005, the Commission has the power to review a licence if it suspects:

a condition of the licence has been breached;
the licensee may be unsuitable to continue holding a licence; or
a review would be appropriate for regulatory purposes.

The key point to understand is that while a licence review does not automatically signal the end of your business, it is a serious matter. The manner in which you respond will be crucial in determining the outcome, which could range from no further action to significant financial penalties or, in the most severe cases, suspension or revocation of your licence.

Immediate Steps to Take

1. Assemble Your A-Team

Just like you wouldn’t go into a high-stakes game without a solid strategy, don’t tackle a licence review without the right people in your corner. This means:

Legal Representation: Gambling law is complex, and the Commission is not known for being lenient when they uncover non-compliance. Get a solicitor who understands the industry and can present your case effectively.
Compliance Experts: If you have an internal compliance team, now is their time to shine. If not, consider bringing in an external consultant to help identify potential weaknesses and address them proactively.
PR and Communications: Depending on the severity of the review, you may need to consider reputational damage control. Transparency is key, but so is managing the narrative.

2. Review Your Compliance History

Take a critical look at your operations. Have there been any recent compliance failures? Are there areas where your policies could be stronger? The Commission will be doing this—so beat them to it. Conducting an internal audit and pre-emptively addressing any shortcomings can go a long way in showing that you take compliance seriously.

3. Responding to the Commission

Your response to the Commission is crucial. It should be:

Timely – Deadlines are not suggestions. Missing them makes you look unprofessional and indifferent about the process.
Comprehensive – If they’ve asked for documents, provide them in full. A piecemeal approach only raises more questions.
Professional, yet cooperative – This isn’t a battle, but it is an opportunity to demonstrate that you are a responsible operator who takes regulatory obligations seriously.

Common Pitfalls to Avoid

1. Avoiding a Defensive Approach

Engaging in a confrontational stance with the Gambling Commission is unlikely to yield positive results. While it may be tempting to perceive their scrutiny as overly critical or unjust, adopting an aggressive or dismissive attitude can exacerbate the situation. A more effective strategy is to focus on demonstrating a commitment to compliance and proactively addressing any concerns that have been raised.

2. Failing to Show Remediation

If issues have been identified, the Commission wants to see that you’re proactive about fixing them. Have policies been updated? Has staff training been implemented? The more evidence you can provide that you are taking action, the better your chances of a favourable outcome.

3. Underestimating the Impact

Licence reviews are not routine inspections. They can lead to significant financial penalties, reputational damage, and in extreme cases, licence suspension or revocation. Treat this process with the gravity it deserves.

Turning the Review into an Opportunity

This might sound counterintuitive, but a licence review can actually be a good thing—if handled correctly. It’s an opportunity to:

Strengthen your compliance framework. A review forces you to examine your operations under a microscope, allowing you to identify weaknesses before they become major problems.
Improve trust with the Commission. Operators who respond professionally and proactively can build credibility, making future interactions (and inspections) smoother.
Enhance customer confidence. If customers see that you’re serious about compliance and responsible gambling, they’ll be more likely to trust your brand.

Final Thoughts

A licence review is undoubtedly a challenging process, but it is not insurmountable. With the appropriate approach—expert legal guidance, a strong commitment to regulatory compliance, and a composed, strategic response—you can successfully navigate the process and emerge in a stronger position.

It is important to recognise that the Gambling Commission is not acting as an adversary but rather as a regulator tasked with ensuring the integrity and fairness of the industry. Your objective should be to demonstrate that your organisation operates responsibly and in full compliance with regulatory requirements. Managing this process effectively could serve as a pivotal moment for your business, strengthening both its compliance framework and reputation.

Now is the time to take a measured approach, assemble the necessary expertise, and address the review with professionalism and diligence.

This article is intended for information purposes only and provides a general overview of the relevant legal topic. It does not constitute legal advice and should not be relied upon as such. While we strive for accuracy, the law is subject to change, and we cannot guarantee that the information is current or applicable to specific circumstances. Costigan King accepts no liability for any reliance placed on this material. For further details concerning the subject of the article or for specific advice, please contact a member of our team.