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UKGC Aims to Improve LCCP Compliance with New Test Hub

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The United Kingdom Gambling Commission (UKGC) has created a test hub for use by gambling operators that work with white-label partners and other non-licensed businesses.

The hub is now available under the “Compliance” tab on the UKGC’s platform. Its primary purpose is to help operators fulfill their licensing conditions as easily as possible. In May, after the release of the gambling White Paper, the UKGC announced that it intended to fill in evidence gaps under the 2023-2026 plan.

Visitors to the test hub will find clear explanations of the responsibilities of operators that carry out business with white-label partners or other unlicensed organizations. There is also detailed information about recommended practices for operators in order to ensure that they properly follow the License Conditions and Codes of Practice (LLCP).

The Commission opted to open the hub in its testing phase after handing out a number of fines and imposing measures on a number of operators that had failed to carry out due diligence checkups on third parties they had contracts with.

Because of this, a number of UKGC licensees asked for a complete review of the LCCP in order to find the best regulations that make their obligations clear when working with third parties.

The UKGC has said that licensees are directly responsible for the third parties that they collaborate with, meaning that they need to ensure that third parties are providing services that meet the licensing conditions and codes of practice.

Licensees are required to carry out a number of due diligence inspections on all third parties they currently work with or plan to work with in order to ensure that they are trustworthy and competent.

The Commission also requires licensees working with third parties to have “sufficient oversight and controls in place to ensure all activities are carried out in accordance with the LCCP, notably, but not exclusively, social responsibility and anti-money laundering requirements.”

UKGC-licensed operators are responsible for the compliance of all their gambling platforms, including white-labeled websites, and this responsibility cannot be transferred to a different party. Any operators that fail in these requirements could face fines and regulatory actions, including the loss or suspension of their license.

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