Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the potential merits for gambling regulation of requiring the Gambling Commission to assess the novelty of an (a) operator or (b) product when conducting scrutiny.

Officials from the Department for Digital, Culture, Media and Sport worked closely with their counterparts at the Treasury to discuss the collapse of BetIndex, the role of the Financial Conduct Authority (FCA) in this case, the independent review conducted by Malcolm Sheehan QC and the lessons learnt that were identified by the review.

Following the publication of the review, the Gambling Commission updated its framework for risk based regulation so that product novelty is properly considered alongside other factors in determining the level of scrutiny an operator is placed under.

The review also clearly states that the FCA’s concluded position was that no part of Football Index fell within the FCA’s remit on legal grounds. Only one company is currently regulated by both the Gambling Commission and the FCA. The Commission continues to be vigilant about emerging products and operators and, under the terms of the new Memorandum of Understanding (MoU) with the FCA, identify and highlight the potential need for its involvement wherever necessary.

The FCA and the Gambling Commission strengthened their Memorandum of Understanding in response to Mr Sheehan’s recommendations in the independent review, including establishing new escalation routes and commitments on timeliness of responses to ensure regulatory impasses are identified and overcome quickly. The FCA has additionally nominated an Executive Director to oversee its relationship with the Commission.