UKGC Modifies License Conditions and Codes of Practice to Improve Standards for ADR

Modifications to the UKGC’s License Conditions and Codes of Practice (LC) have come into effect starting October 31. The alterations which establish a strict set of rules to be followed, aim to raise standards for alternative dispute resolution (ADR) and consumer interaction.

As far as the Commission clarified, the changes will improve consistency and clarity over the role of such a provider. These alterations will affect all certificates excluding gaming machine technical licenses and gambling software licenses. ADR providers who are not compliant with these standards will not be considered approved suppliers for gambling license holders.

Make Gambling Fairer and Safer

The initial ideas for modifications were introduced earlier this year, striving to create the environment which would be less harmful.

Under the new set of rules…

…license owners must fulfill additional obligations in dealing with clients at risk of experiencing gambling-related harm.

The amendments to customer interaction requirements will mean operators must now pay more attention to the outcomes of both identifying and interacting with players who may be at risk of or experiencing gambling-associated harms. This includes the evaluation of the impact that interaction has on a client as well as the effectiveness of its overall approach.

Commission executive director Paul Hope warned operators they would be expected to comply in full with the amendments, otherwise, the license may be questioned. The customer interaction changes will affect all licenses, with the exception of the non-remote lottery, gaming machine technical, gambling software and host licenses.

Ground-Breaking Alterations for ADR

The amendments dictate that gambling businesses will now have to be in accordance with the Commission’s additional standards for ADR rather than just the requirements specified in the national ADR regulations for all industries.

Under the new standards…

…ADR providers must identify that compensation for customers should reflect emotional or practical harm, rather than being a punishment for a business. Compensation must be solely established by the ADR provider unless appealed in court.

Besides this, they have to take into consideration areas beyond financial loss.

The amendments also specify that an ADR provider must provide transparency on how it is funded and how it is independent, as well as publishing its performance data. In addition to this, they must also acknowledge receipt of customer within three working days and provide an update to consumers every 30 days that the dispute is still active.

As the rules are getting tighter, the number of clients in the UK who filed in a complaint about a gambling operator at least once has increased by almost 5000% in the last five years.

Source:

“GC license changes for player protection come into effect”, igamingbusiness.com, October 31, 2019.