Autumn 2023 consultation on proposed changes to Licence Conditions and Codes of Practice (LCCP) and Remote Gambling and Software Technical Standards (RTS)

In November 2023, we consulted on a number of changes to the LCCP and RTS requirements placed on gambling businesses. The consultation covered five topics:

1. Socially responsible incentives
2. Customer-led tools
3. Improved transparency on customer funds in the event of insolvency
4. Changes to the frequency of regulatory return submissions
5. Removing obsolete Commission requirements due to the government’s upcoming statutory levy (LCCP RET list)

These topics are connected to the 2023 white paper High Stakes: gambling reform for a digital age following a review of the Gambling Act 2005.

The detailed proposals were:

1. Socially responsible incentives

The consultation covered 3 issues.

Issue 1: Wagering requirements

The evidence showed that high levels of wagering requirements attached to bonuses can lead to higher intensity of gambling activity, and adds complexity to offers, which in turn increases the risk of excessive gambling and risk of harm. Therefore, we consulted on 2 alternative proposals to address this issue, which were:

• a proposal to ban wagering requirements applied to all bonus funds in promotional offers
• a proposal to set a cap on wagering requirements to all bonus funds applied to promotional offers. We consulted on 3 alternative thresholds, which were a maximum of 1, 5, or 10 times.

Issue 2: Mixing of products within incentives

Some promotional offers are structured to combine different product types, primarily for new customer sign up offers. This typically involves gambling licensees providing a combination of free bets and free casino spins. The evidence shows that these can be problematic because they can lead to consumer confusion and likelihood of experiencing harm. We therefore consulted on a proposal to introduce a ban on the mixing of product types within promotional offers, for new and existing customers.

Issue 3: Changes to the drafting and structure of LCCP to make it clearer and easier to understand

LCCP Social Responsibility Code 5.1.1 (Rewards and Bonuses) sets out rules to ensure incentives are constructed in a socially responsible manner. Based on compliance engagement and casework, it was apparent that the structure and wording of aspects of this provision are not as clear as they ought to be. Therefore, we consulted on a new structure and wording to make it explicit that incentives should be constructed in a manner that does not lead to excessive or harmful gambling.

2. Customer-led tools

This consultation covered 3 issues.

Issue 1 was account-level customer-led financial limits. We wanted to make sure that customers who wanted to actively make use of customer-led pre-commitment tools, such as financial limits, could do so easily, in ways that worked for them and with the minimum of friction. We set out a series of proposed changes to the RTS and consulted on 2 options for implementation - for tools to be presented as the default option for new customers with the ability to opt out, or for all new customers to set a limit on their account.

The proposed changes would be delivered through revisions to RTS 12 – Financial limits.

Issue 2 was cross-operator deposit limits. A number of other jurisdictions have announced, trialled or implemented customer-set financial limits (in the form of deposit limits) that apply across all accounts held by an individual customer. We sought stakeholders’ views on the issue, but did not consult on specific proposals for change.

Issue 3 was artificial barriers to consumer choice. In response to the call for evidence for the white paper some stakeholders submitted evidence of friction being applied at various points in the customer journey, which may dissuade customers from acting in their own interest. We sought views on stakeholders’ concerns and specific examples where consumer decision-making has been influenced or encouraged through the use of friction or barriers in this way. We did not consult on specific proposals for change.

3. Improved transparency on customer funds in the event of insolvency

To ensure it is clear to consumers throughout their relationship with a gambling licensee with a ‘not protected’ rating that their funds are not protected in the event of insolvency, we proposed that such gambling businesses should actively remind customers that their funds are not protected.

We proposed 2 options – option A made the requirement subject to the value of funds reaching a threshold amount, option B did not include a threshold. Both options required a reminder to be sent to the customer no more than once every 6 months.

Option A sought evidence on what a suitable threshold might be, providing a number of options for comment.

4. Changes to the frequency of regulatory return submissions

We proposed to increase the frequency for licensees that submit annual returns, so that all regulatory returns would be required quarterly. This would provide us with a timelier and more accurate assessment of the gambling market.

5. Removing obsolete Commission requirements due to the government’s upcoming statutory levy (LCCP RET list)

The government is moving ahead with the introduction of the statutory levy and has brought forward the necessary legislation for the levy to come into force on 6 April 2025. Once this is brought into force it will replace the current voluntary system for funding research into the prevention and treatment of gambling-related harms, harm prevention approaches and treatment for those harmed by gambling (RET). We consulted on removing paragraph 2 of SR Code Provision 3.1.1 – Combating problem gambling which currently requires gambling licensees to make an annual financial contribution to one or more organisations providing RET on a list that we maintain (sometimes referred to as the LCCP RET list).

The consultation closed on 21 February 2024.

There were 116 respondents who provided 289 responses across the 5 topics in this consultation, from a range of stakeholders, including:

• 13 members of the public
• 16 individuals responding in a personal capacity who are or have worked in a gambling business
• 23 representing a gambling business
• 41 representing a charity and/or non-profit organisation
• 2 academics, responding as individuals
• 5 representing a licensing authority or other regulator
• 6 representing a professional body, including academic organisations
• 7 representing a trade association
• 3 other (not specified).

We have reviewed the responses to each of the proposals to inform our final position. You can see the full responses for the five topics by clicking on the following links:

Frequency of regulatory returns: Consultation Response

Autumn 2023 consultation – Proposed changes to LCCP and RTS: Consultation Response

Autumn 2023 consultation – Proposed changes to LCCP and RTS – Socially responsible incentives: Consultation Response

Following consultation, we made the following decisions.

1. Socially responsible incentives

We decided to proceed with:

• wagering requirements capped to a maximum of 10 times in promotional offers
• a ban on mixing of products within incentives
• implementing changes to the structure of LCCP SR Code 5.1.1 (Rewards and Bonuses). We decided to proceed with deleting the LCCP SR Code 5.1.1 1(b)(i) which states ‘neither the value nor amount of the benefit is dependent on the customer gambling for a pre-determined length of time or with a pre-determined frequency’.

We have decided not to proceed with the proposed wording requiring licensees to ‘ensure the design and structure of the incentive does not lead to excessive intensity of gambling which may risk customers experiencing harms associated with gambling.’

These new elements of the LCCP are in force from 19 December 2025.

2. Customer-led tools

We decided to make changes that affect both requirements and implementation guidance across various sections of RTS 12 – Financial limits, which strengthen our requirements and further empower consumers by making limit-setting more effective.

This included the requirement that all customers must be prompted to set a financial limit as early as possible and be able to set limits at any point thereafter. Those financial limits must only be offered using free text.

We also decided to implement the requirement that financial limits must be applied at the account level.

Financial limit setting facilities must be provided via a link on the homepage and clearly visible and accessible. These facilities must also be provided on or via a link on deposit pages and/or screen and be clearly visible and accessible.

We included additional new wording to support ‘clearly visible and accessible’ elements of the RTS requirement, regarding minimising the number of clicks and/or pages that must be navigated to reach these facilities.

We decided to make it a requirement, rather than guidance, that all customer requests to decrease a financial limit must be actioned immediately.

We are introducing implementation guidance to confirm that licensees can also offer links to tools or resources to support limit-setting.

We also decided to change the implementation guidance that licensees can also continue to offer financial limits at the product or channel level (this is a minor amendment to the current guidance as a result of limits at the account level becoming a requirement). Licensees should also clearly communicate to customers how product and channel limits work.

We decided to introduce new implementation guidance that licensees should inform customers about how limits set across multiple timeframes work, if chosen by the customer.

There is new implementation guidance that communications to consumers that include links to limit-setting facilities should link directly to those facilities (other than where a security log-in is needed). Licensees should also inform consumers when limits will take effect, if not automated or if delayed due to technical issues.

We have decided to require an alert to customers to review their account activity – customers must receive a prompt to review their account and transaction information; this prompt must be provided at a minimum of 6-monthly intervals; and customers must be able to set more frequent reminders to review their account information. Licensees should also monitor engagement with these prompts to inform best practice. Following consultation, this was considered more secure than the originally proposed activity statements.

There will be new implementation guidance that licensees can mitigate against user error by specifying monetary increments for free text limits.

We have decided that customers should retain the ability to opt out of setting a limit, but limit-setting must be presented as the default option for customers. We will introduce additional implementation guidance on this aspect in response to feedback.

The changes we have decided to make are intended to improve the uptake and effectiveness of financial limits. As proposed in the consultation, we have decided to update the wording of the aim in this section of the RTS to reflect those changes.

These changes to the Remote Technical Standards are in effect from 31 October 2025.

We also proposed a requirement that all customers must be able to set deposit limits, and that licensees could also continue to offer other types of financial limits such as spend limits or loss limits.

Via responses to the consultation for these changes, engagement with industry and consumer contacts, it has become clear that some operators are changing the way in which they interpret financial limits, in particular deposit limits. We published a narrow supplementary consultation to build upon the proposals detailed in the Autumn 2023 consultation (closing date 30 April 2025), in particular proposals for the definitions of ‘deposit limits’ and other financial limits, to improve consistency across the industry and to improve clarity and transparency about how limits work for consumers.

3. Improved transparency on customer funds in the event of insolvency

We decided to proceed with the requirement that licensees whose customer funds are ‘not protected’ in the event of insolvency must actively remind consumers once every six months that their funds are not protected. The requirement will follow option B - where a reminder will be sent to all customers irrespective of the value of funds held. This change to the LCCP applies to customer-facing licensees other than lotteries which do not involve high-frequency or instant win games.

We have decided that the reminder is to be sent once every 6 months. The new provision also requires licensees to obtain an acknowledgement from the customer before permitting them to gamble.

The new requirement, within Licence Condition 4.2.1, is in force from 31 October 2025.

4. Changes to the frequency of regulatory return submissions

We decided to amend licence condition 15.3.1 to require all licence holders to submit regulatory returns quarterly. This change came into force on 1 July 2024.

We also introduced additional changes to the regulatory returns submission process, some of which were previously agreed in the 2020 Consultation: Changes to information requirements in the LCCP. These include removing some questions from regulatory returns for licensees and the harmonisation of reporting periods and due dates across all licensees.

5. Removing obsolete Commission requirements due to the government’s upcoming statutory levy (LCCP RET list)

We decided to proceed remove the requirement to make annual financial contributions to research, prevention and treatment as it would have been obsolete once the statutory levy is introduced. This change came into force on 31 March 2025. Paragraph one of SR code 3.1.1, which relates to social responsibility requirements, remains in force.

Implementation timeline

We have developed a phased approach to these changes to the LCCP and RTS. The implementation dates for customer-led tools, socially responsible incentives and improved transparency on customer funds in the event of insolvency allow time for gambling businesses to make the technical and process amendments needed, taking into account other forthcoming changes to legislation and the Commission’s regulatory framework.