Licensees are reminded that on 29 November 2024, the Gambling Commission will update licence condition (“LC”) 1.2.1 of the Licence Conditions and Codes of Practice (“LCCP”) to clarify and extend the roles captured as ‘specified management offices’ (“SMOs”) under this requirement. Licensees impacted by this change should take action now to ensure relevant individuals are granted personal management licences (“PMLs”) before the new requirements come into effect.

Background

Earlier this year, the Gambling Commission published its response to the Summer 2023 consultation (“Consultation Response”) in which it confirmed that it would proceed with changes to the LCCP to clarify and extend the roles captured as SMOs, which from 29 November 2024 will include:

1. Chief Executive Officers, Managing Directors or equivalent positions;
2. Chairs of Boards – unless that person only holds the position on a transient and short-term basis for individual meetings; and
3. Those responsible for AML and CTF, including the Money Laundering Reporting Officer and Nominated Officer.

For further background and discussion please see our previous blogs: White Paper Series: Transforming corporate culture by “driving personal accountability and responsibility” for lookers-on seeing most of the game? and Gambling Commission publishes Summer 2023 Consultation Response and Betting & Gaming Council announces New Industry Voluntary Code.

New Requirement

From 29 November 2024, LC 1.2.1 (2) will read:

1.2.1 (2). The specified management offices are those offices (whether or not held by a director in the case of a licensee which is a company, a partner in the case of a licensee which is a partnership or an officer of the association in the case of a licensee which is an unincorporated association) the occupier of which is by virtue of the terms of their appointment responsible for:

a)  the overall management and direction of the licensee’s business or affairs (this is likely to be the Chief Executive Officer, Managing Director or equivalent).

b)  chairing the Board (where the licensee has such a body) where that appointment is held for a fixed or indeterminate term of office, unless:

1. 1. 1. 1.  the position is held only on a transient and short-term basis for individual meetings; and
         2.  the licensee retains evidence in support of point 1.

  ….

i)   the licensee’s anti-money laundering and counter-terrorist financing function as head of that function his is likely to include the following:

a)   for holders of casino licences, the person responsible for compliance with the relevant regulations (and appointed in accordance with those regulations); and the person responsible for submission of reports of known or suspected money laundering or terrorist financing activity under the relevant legislation (and appointed in accordance with the relevant regulations)

b)   for holders of licences other than casino licences, where an individual has been appointed to submit reports of known or suspected money laundering or terrorist financing activity under the relevant legislation, that individual.

As regular readers will be aware, the Gambling Commission consulted on the proposal that the Board Chair be required to hold a PML “to ensure that those responsible for scrutiny, strategy and leadership at the most senior level within the organisation”. This means that, where licensees sit within corporate groups, the obligation to hold a PML could be extended to the Board Chair of the top parent company, and CEOs or Directors of parent companies, due to the level of influence those individuals are able to exercise over the licensee. It is therefore important that licensees with extended group structures: (1) consider which individuals within their wider group may be impacted by the new requirement so any necessary PML applications can be made as soon as possible; and (2) if there is uncertainty, proactively contact the Gambling Commission for clarification in advance of the requirements coming into effect.

Next Steps

The changes come into force on 29 November 2024, meaning PML applications for these positions must have been granted before this date. On the basis that it can take eight weeks for the Gambling Commission to process a PML application (assuming there are no issues with the application), PML applications need to be submitted as soon as possible. If affected individuals do not hold a PML before 29 November 2024, the licensee will be in breach of LC 1.2.1 (2).

Please get in touch with us if you have any questions about PMLs, if you would like assistance with PML applications, or if you are interested in our PML training services.