From Warning to Action: UKGC’s Fraud Deadline Arrives

The UK Gambling Commission (UKGC) warned its licensees that they must have effective procedures in place to put a stop to gambling-related crime, and now this legislation has been introduced there will be serious consequences for those who aren’t doing enough to prevent fraud.

In England and Wales, fraud is the most common type of crime, accounting for 40% of it. The Minister with responsibility for fraud, Lord David Hanson, said: “Fraud is a pernicious crime, and we are determined to root it out wherever it takes place.”

“This guidance marks the first steps towards a corporate culture shift around fraud prevention.” He added.

The Economic Crime and Corporate Transparency Act 2023 came into force on the 1st September, requiring large organisations to have reasonable policies in place to prevent fraud. The UKGC warned that this legislation may apply to some of its licensees and that they should refer to the Home Office’s guidance on the new laws, published in November last year.

Under this legislation, large organisations can be held criminally liable if any “associated person” (employee, agent, subsidiary, etc…) commits fraud with the intention of benefitting the organisation. This includes concealing important information from consumers or investors and dishonest sales practices, among other activities.

This law is primarily targeting larger organisations but the UKGC advised its smaller licensees to use the Home Office guidance as an example to improve their practices as well. For the operators who are unsure whether the legislation applies to them, the Gambling Commission has recommended they seek legal advice.

In 2010 “failure to prevent bribery” laws were brought in, and this new legislation builds on these to increase organisations’ responsibility to build anti-fraud cultures.

“Corporate fraud significantly damages confidence in UK companies and ultimately costs the taxpayer. The publication of this guidance means that time is running short for corporations to get their house in order or face criminal investigation,” advised Nick Ephgrave, director of the Serious Fraud Office.

With this legislation now in place it’s possible we will see more companies being investigated and potentially receiving penalties as they fail to meet the new requirements. It’s also likely that these regulations will lead to stricter checks and more restrictions for consumers while playing.