European Gaming Lawyer magazine EGL_Spring2017_opt | Page 25

As many will have noticed, the common
theme amongst these ongoing investigations
is treatment of the consumer. Since the
introduction of the Consumer Rights Act in
October 2015, there has been an increased
focus on industries that are deemed not to
be at the frontline of consumer protection,
and the gaming industry is fi rmly amongst
them. Th e reasons for this are readily
apparent. According to the Advertising
Standards Authority, remote operators
are routinely amongst the top ten worst
off enders for spamming and last year, the
Commission received over 40,000 emails and
nearly 37,000 phone-calls from the public
concerning the activities of gambling-related
companies, representing “well over 300%
[increase] on the last two years”.
Th e infl ux of complaints has not gone
unnoticed, and the Commission is now
insisting that the sector does more to put
the consumer fi rst. It has been instrumental
in working with DCMS, the CMA and the
ICO in their respective investigations and,
in her recent public addresses, CEO Sarah
Harrison has repeatedly told operators
that consumer protection should be their
priority. In particular, at the Raising
Standards conference in November last
year, Harrison suggested that, although the
sector is moving in the right direction, the
pace of change needed to quicken to bring
it into line with consumer-facing businesses
in, for example, the fi nancial services and
retail sectors. Her core message was that
organisations need to take steps now to
prevent events akin to the banking crisis
and the Volkswagen emissions scandal
occurring and damaging public trust. As
Harrison put it: “Don’t wait for a crisis to
happen that shakes the very foundation of
customers’ trust in your industry: act now
and demonstrate to consumers that your
interest in their needs is genuine”.
So, what needs to be done?
Th e Commission’s message is that, ultimately,
the industry needs to increase the trust and
confi dence that consumers have in gaming.
Not only should customers be able to get the
best prices and the best experience gambling
online, but they should also be well informed,
treated fairly and kept safe - in particular
those who are vulnerable to the risks and
realities of gambling-related harm.
In order to achieve this, the Commission
has advised licensees to assess, amongst other
things: their social responsibility, how fairly
they are treating customers and their anti-
money laundering practices.
1. Social responsibility
Th e Commission wants the sector to review
its social responsibilities and take measures
to achieve them. At last year’s Responsible
Gambling Trust conference, Harrison set
out fi ve initiatives that the Commission
would look for from the sector:
• Clarity of purpose – is the work operators
are doing on social responsibility aimed
at preventing harm – or just dealing with
it where it is already occurring?
• Evaluation – how will sector assess the
impact of measures and share fi ndings?
• Added value – are operators doing
the minimum, or taking their
responsibilities further?
• Customer focus – are businesses
considering every aspect of the
customer journey?
• Transparency – will operators take
stakeholders with them, and be open
about the inputs to their work, as well
as the conclusions and actions?
2. Treating customers fairly
Th e Commission wants licensees to
move focus away from the bottom line
and take a more customer-focussed
approach. Th e infl ux in customer
complaints over the past 12 months
demonstrates that there are serious
issues to be addressed and, although
some of these issues will be considered
during the DCMS, CMA and ICO
investigations, the Commission wants
to see the sector step up and drive
standards now. A further review of
current practices and requirements
with regard to complaint processes is
also planned, so operators would be
well advised to take a proactive stance
and ensure adequate policies and
procedures are in place before the
review commences later this year.
3. Money laundering
Money laundering has been an area
of concern in the sector for years.
However, Harrison revealed that the
Commission’s recent casework into
AML standards showed “a lack of
curiosity, and at worst, a leadership
culture which puts commercial gain
over compliance”. Th e Commission
therefore wants licensees to adopt a
more risk-based approach and stop
waiting until a source of funds is proven
to be illegal before taking action.
Sharpening the regulatory toolkit
In order to regulate existing licensees more
eff ectively and reprimand entities that
knowingly fl aunt the licensing objectives,
the Commission is consulting on proposed
changes to its enforcement strategy. Th e
consultation paper
European Gaming Lawyer | Spring Issue | 2017 | 25