Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment he has made of the efficacy of oversight arrangements for white label licensing arrangements in tackling (a) money laundering and (b) wider criminal activity.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
All gambling companies providing gambling facilities to consumers in Great Britain, wherever they are based, must be licensed by the Gambling Commission and comply with the conditions and codes of practice of their operating licences. Operators who provide services marketed under a different brand as part of a ‘white label’ agreement are held accountable for the actions of their commercial partners, and are expected to carry out all necessary due diligence to satisfy themselves that the relationship will not compromise their own regulatory compliance. Further detail about the Gambling Commission’s compliance and enforcement work in this area can be found in the relevant section of its Compliance and Enforcement Report for 2019 to 2020 and its Reminder to licensees regarding white label gambling websites. These can be accessed at: https://beta.gamblingcommission.gov.uk/strategy/raising-standards-for-consumers-compliance-and-enforcement-report-2019-20/white-label-partnerships
Licensed gambling operators and their white label partners are entitled to enter into commercial arrangements with sporting bodies, as long as any sponsorship activities are carried out in a socially responsible way. The Commission expects licensees to ensure that all parties are aware of, and compliant with, the relevant advertising and sponsorship rules and regulations. The government and the Gambling Commission do not hold information on exposure to gambling advertising and marketing in other jurisdictions.
The government launched its Review of the Gambling Act 2005 on 8 December with the publication of a Call for Evidence. As part of the wide scope of that Review, we have called for evidence on whether white label agreements pose a risk to consumers in Great Britain, and on the impact of gambling sponsorship arrangements across sport, esport and other areas.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, how many times he has had discussions with the Secretary of State for Justice on (a) gambling policy and (b) money laundering associated with gambling in (i) 2018, (ii) 2019 and (iii) 2020.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Department for Digital, Culture, Media and Sport (DCMS) works closely with the Department of Health and Social Care, HM Treasury, and wider government on matters related to gambling policy. Since 2018, DCMS officials have met regularly with their counterparts across government to discuss a wide range of gambling-related issues.
Details of ministerial meetings are publicly available. They are published quarterly on the government’s website at: https://www.gov.uk/search/transparency-and-freedom-of-information-releases?content_store_document_type=transparency&organisations%5B%5D=department-for-digital-culture-media-sport.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, whether gambling using cryptocurrency is legal; and whether UK bookmakers are permitted to offer this service.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Cryptoassets are not illegal, but licensed gambling operators are only permitted to accept them as a payment method where they are able to ensure they are compliant with all Gambling Commission licence conditions and requirements, including anti-money laundering and safer gambling measures.
Operators are required to declare any changes to the arrangements through which they accept payment from customers to the Commission. This includes changes to the payment methods (including cryptoassets) or payment processors made available to customers to pay for gambling services. To date, no licensed operators have notified the Gambling Commission that they are accepting digital currencies or cryptoassets directly as payments but several have reported indirectly accepting funds derived from cryptoassets via a third party payment provider. In these cases, funds accepted by the licensee for gambling have been converted to fiat currency (£).
Asked by: Wes Streeting (Labour - Ilford North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the gambling industry on tackling money laundering in that industry; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK’s anti-money laundering (AML) and counter-terrorist financing (CTF) supervisory regime is comprehensive, seeking to regulate and supervise those firms most at risk from money laundering and terrorist financing. In December 2018, the Financial Action Task Force (FATF), the global standard-setter for AML/CTF, found that the UK had one of the toughest systems for combatting money laundering and terrorist financing of any country it has assessed to date.
The Gambling Commission is the supervisory authority for casinos under the Money Laundering Regulations (MLRs). The FATF Mutual Evaluation Report found that the Gambling Commission had a good understanding of the money laundering and terrorist financing risks in the gambling sector and applied a risk-based approach to supervision.
The Gambling Commission supervises the casino sector and regulates the gambling industry as a whole. It conducts a yearly money laundering and terrorist financing risk assessment based on emerging and inherent risks in the gambling industry. This evaluation informs its supervisory and regulatory activity ensuring it is targeted, relevant and proportionate. In the reporting period of 6 April 2018 - 5 April 2019, the Gambling Commission issued financial penalties worth £17 million in total against its supervised population for cases that included AML/CTF failings.
In his time as Chancellor of the Exchequer, the Chancellor has not had personal discussions with the Home Secretary, the Secretary of State for Digital, Culture, Media and Sport or representatives of the gambling industry on money laundering, though there are regular official level engagements focussed on identifying these risks and demonstrating evidence of continued improvements in their effectiveness, as there are with all AML supervisors.
Asked by: Wes Streeting (Labour - Ilford North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the (a) Home Secretary and (b) Secretary of State for Digital, Culture, Media and Sport on tackling money laundering in the gambling industry; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK’s anti-money laundering (AML) and counter-terrorist financing (CTF) supervisory regime is comprehensive, seeking to regulate and supervise those firms most at risk from money laundering and terrorist financing. In December 2018, the Financial Action Task Force (FATF), the global standard-setter for AML/CTF, found that the UK had one of the toughest systems for combatting money laundering and terrorist financing of any country it has assessed to date.
The Gambling Commission is the supervisory authority for casinos under the Money Laundering Regulations (MLRs). The FATF Mutual Evaluation Report found that the Gambling Commission had a good understanding of the money laundering and terrorist financing risks in the gambling sector and applied a risk-based approach to supervision.
The Gambling Commission supervises the casino sector and regulates the gambling industry as a whole. It conducts a yearly money laundering and terrorist financing risk assessment based on emerging and inherent risks in the gambling industry. This evaluation informs its supervisory and regulatory activity ensuring it is targeted, relevant and proportionate. In the reporting period of 6 April 2018 - 5 April 2019, the Gambling Commission issued financial penalties worth £17 million in total against its supervised population for cases that included AML/CTF failings.
In his time as Chancellor of the Exchequer, the Chancellor has not had personal discussions with the Home Secretary, the Secretary of State for Digital, Culture, Media and Sport or representatives of the gambling industry on money laundering, though there are regular official level engagements focussed on identifying these risks and demonstrating evidence of continued improvements in their effectiveness, as there are with all AML supervisors.
Asked by: Wes Streeting (Labour - Ilford North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Home Secretary and the Secretary of State for Digital, Culture, Media and Sport on effective data sharing between gambling operators to tackle money laundering in the gambling industry; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK’s anti-money laundering (AML) and counter-terrorist financing (CTF) supervisory regime is comprehensive, seeking to regulate and supervise those firms most at risk from money laundering and terrorist financing. In December 2018, the Financial Action Task Force (FATF), the global standard-setter for AML/CTF, found that the UK had one of the toughest systems for combatting money laundering and terrorist financing of any country it has assessed to date.
The Gambling Commission is the supervisory authority for casinos under the Money Laundering Regulations (MLRs). The FATF Mutual Evaluation Report found that the Gambling Commission had a good understanding of the money laundering and terrorist financing risks in the gambling sector and applied a risk-based approach to supervision.
The Gambling Commission supervises the casino sector and regulates the gambling industry as a whole. It conducts a yearly money laundering and terrorist financing risk assessment based on emerging and inherent risks in the gambling industry. This evaluation informs its supervisory and regulatory activity ensuring it is targeted, relevant and proportionate. In the reporting period of 6 April 2018 - 5 April 2019, the Gambling Commission issued financial penalties worth £17 million in total against its supervised population for cases that included AML/CTF failings.
In his time as Chancellor of the Exchequer, the Chancellor has not had personal discussions with the Home Secretary, the Secretary of State for Digital, Culture, Media and Sport or representatives of the gambling industry on money laundering, though there are regular official level engagements focussed on identifying these risks and demonstrating evidence of continued improvements in their effectiveness, as there are with all AML supervisors.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has had discussions with the Gambling Commission on money laundering and bookmakers since the recent fine of the bookmaker William Hill.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury frequently engages with the Gambling Commission on a range of issues, including in relation to anti-money laundering supervision. The Gambling Commission is a member of the Money Laundering Advisory Committee that is chaired by the Treasury and Home Office and was actively engaged during the process of drafting the most recent National Risk Assessment 2017.
The Department for Digital, Culture, Media and Sport (DCMS) Ministers and officials also have regular discussions with the Gambling Commission on a range of issues.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps the Gambling Commission is taking to ensure bookmakers (a) check the source of betting money and (b) protect vulnerable customers.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will make an assessment of the potential merits of strengthening the powers of the Gambling Commission to respond to social responsibility failings in the gambling sector.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will publish the number of ongoing investigations into bookmaker companies by the (a) Gambling Commission and (b) Competition and Markets Authority.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.