This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.
The latest Gambling Commission FAQs confirm that the Gambling Commission will impose on B2B licence applicants information requirements similar to those imposed on B2C operators.
Applicants for B2B Gambling Commission licences (generally those gambling software providers seeking licences as a result of the Gambling Commission operator licence requirement (in place from 30 January 2015) that Gambling Commission licensed operators only procure software from Gambling Commission licensees) will be required to explain the source of their revenue to the Gambling Commission when submitting a licence application. In particular they will be required to set out what proportion of revenue comes from:
a) operators with point of consumption licences in jurisdictions other than Great Britain (e.g. France, Spain, Denmark, Italy);
b) Gambling Commission licensed operators; and
c) other operators where the B2B applicant is uncertain about the location of players.
The Gambling Commission will also require an account of how the B2B applicant decides with whom to deal and for the applicant to state whether or not it itself implements any technological or other protections against the acceptance of customers in black market jurisdictions. The Gambling Commission views this requirement as beneficial to its aim of deterring its licensees from supporting those who compete illegally with Commission-licensed operators.
The FAQs also outline amendments to the licence conditions applicable to gambling software licensees which include the addition of a requirement that the licensed B2B operator contractually obliges its B2C operator clients to:
a) ensure that British based players accessing the network/platform do so via a Commission-licensed B2C operator; and
b) that if that client is a Gambling Commission licensee any gambling software it uses is manufactured, supplied, installed or adapted by a gambling software licence holder.
