UKGC cannot reduce licence fees amid coronavirus financial crisis
Regulator warns of increased risk and urges licensees to protect consumers during “challenging times”
The Gambling Commission (UKGC) has said it cannot reduce operator licence fees or fast-track new licence applications as a result of the current Covid-19 crisis.
The UKGC revealed it had been contacted by several operators asking for advice on how to cope but said the way the current fee payment system is structured makes it prohibitive to reduce costs.
“We recognise these unprecedented circumstances will be having a significant impact on businesses and many will be facing uncertain and unsettling times,” the UKGC added.
Almost all UK-licensed operators are expecting significant financial losses due to the ongoing financial and health crisis.
“The Commission has a well-practised and comprehensive Business Continuity Plan, which we have invoked with the intention of minimising the impact on our regulatory work and the advice and services we provide,” the UKGC added.
The licence fee structure recently came under scrutiny following a National Audit Office report which claimed the UKGC needed more funding from the Department for Digital, Culture, Media and Sport to pursue its regulatory objectives.
The UKGC has also released new guidance for online operators on social responsibility standards, after many firms reported increases in players gambling online.
It has said that operators should assess individual affordability on an ongoing basis due to the disruption of income for many individuals, as well as increasing social responsibility interactions in both onboarding and where players are experiencing gambling-related harm.
“We realise that the unprecedented changes to daily life, and in some cases, financial uncertainty, will create challenges for your business,” wrote the UKGC.
“The changes will also increase the risks to some individuals, which means that despite the fact that these are challenging times we must all continue to protect consumers.”
UKGC staff have been working remotely since Wednesday, when the regulator placed a notice on its website advising of delays to many services as a result of the change in working structure.