UKGC Challenges Operators to Improve Customer Focus

Posted by Harry Kane on Friday, November 18, 2016

As we reported at the beginning of the month, the Gambling Commission is implementing stricter rules as part of its ongoing mission to raise standards within the gambling industry in the UK. In the latest move, the Chief Executive of the Gambling Commission, Sarah Harrison, has told gambling operators that more needs to be done to put consumers at the heart of their business. She also called for operators to accelerate the pace at which the changes are made. Ms Harrison addressed operators last week at the first Raising the Standards Conference, held in Birmingham.

The chief exec urged operators to take swift action to show consumers that they have a genuine interest in them. She encouraged operators to focus on the consumer over the regulator, asking themselves and acting on what the customer needs, rather than what they think the commission wants. She called upon operators to act now, rather than waiting for a crisis that would shake customers’ confidence and trust in the industry, such as that seen in the banking and automotive industries. She invited operators to join the commission with a shared purpose of making the industry “the most trusted gambling sector in the world.”

Whilst she acknowledged that progress had been made by operators, in key areas such as effective gambling management tools for consumers and strategies for the reduction of gambling-related harm, she also indicated that there was still more to be done. Operators were advised to take the initiative to drive up standards across their business, and to share best practice. The three key areas for improvement highlighted in the speech included social responsibility, treating customers fairly, and the prevention of money laundering.

In terms of social responsibility, Harrison indicated operators should be taking measures to prevent harm, rather than simply dealing with it. There should be a strong focus on the customer. Also, operators should also be transparent in their assessment of how successful their social responsibility initiatives are.

As for treating customers fairly, Ms Harrison reported that the commission had received around 80,000 contacts from consumers over the last 12 months, with the main concerns related to self-exclusion, withdrawing funds, terms & conditions, along with marketing and advertising. She indicated that the fair treatment of customers was central to these issues.

With regard to money laundering, operators were reminded that they have responsibilities and duties under the Proceeds of Crimes Act, and must make serious efforts to prevent their companies being used to launder money. Complacency would not be accepted and operators should be inquisitive and curious regarding the source of customer funds. Such an approach, she stated would help to build consumer trust in the integrity of the gambling industry.

Harrison warned operators that stronger penalties could be incurred for future failures. Whilst the current standards and practices used by the commission to pursue compliance tend to favour financial settlement over a licence review, this bias is likely to be removed. She indicated that the commission would use all tools at its disposal to manage failures. She indicated that whilst a licence review would be an option, financial penalties would likely be increased, particularly in cases of systematic and repeated failings. These higher penalties aim to deter poor compliance, and take effective action where behaviour does not change.