UKGC Publishes Test Hub for Operators Working with Non-Licensed Entities

The new hub has been published on UKGC’s platform under the “Compliance” tab. Its main purpose is to help operators collaborating with entities that are not licensed to fulfill their duties and carry on their responsibilities with more ease. 

Last month, the Commission announced its intention to fill in evidence gaps under the 2023-2026 plan, as a result of the much-anticipated launch of the White Paper. 

Offering Guidance and Information

The new test hub offers clear definitions of both the responsibilities and expectations of operators who do business with white-label partners and other parties that are not running under valid licenses. 

Information regarding the recommended practices that operators should follow to make sure that all Licence Conditions and Codes of Practice (LLCP) are carried out efficiently is also part of the new hub.

The decision to launch the hub in its testing phase came after the Commission imposed a number of fines and other punitive measures on several operators who had failed to conduct due diligence checkups on contracted third parties they were running contracts with. 

As a result, UKGC licensees have asked for a thorough review of the LLCP in order to determine the best regulations that would express the obligations that all gambling operators should comply with when working together with third parties. 

According to UKGC, licensees are directly responsible for the third parties they choose to collaborate with, which means the need to make sure the latters’ operations are perfectly aligned with these license conditions and codes of practice.

Operators Must Check Their Partners’ Reliability and Competence

As per the recommendations in the new test hub, gambling businesses should perform a series of due diligence inspections on all the third parties they currently work with or which they plan on working with in the future to determine their levels of trustworthiness and competence. 

Additionally, the commission asks all licensees that rely on third parties to conduct any aspect of their business in relation to the licensed activities to ensure they have “sufficient oversight and controls in place to ensure all activities are carried out in accordance with the LCCP, notably, but not exclusively, social responsibility and anti-money laundering requirements.”

Operators who fail to effectively control the third parties they work with could be subject to regulatory actions including the loss or temporary suspension of their license to operate in the UK. 

The information in the new hub also explains that online gaming operators holding a license are exclusively responsible for the compliance of all of their gambling platforms, including white-labeled websites, and that the responsibility cannot be transferred to other parties.

In May, the Commission fined SkillOnNet $380,000 over a series of license breaches. In January, TonyBet was given a $550,000 fine over a number of similar breaches.