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Consultation response

Changes to the licence conditions and codes of practice on High Value Customers

Response to consultation on strengthening controls on how licensees incentivise high spending customers.

10 - Annex A: Amended social responsibility code provision

The change to social responsibility code provision 5.1.1 is as follows.

Social responsibility code provision 5.1.1

Rewards and bonuses – SR code

All licences (including ancillary remote licences), except gaming machine technical and gambling software licences

  1. If a licensee makes available to any customer or potential customer any incentive or reward scheme or other arrangement under which the customer may receive money, goods, services or any other advantage (including the discharge in whole or in part of any liability of his) (‘the benefit’) the scheme must be designed to operate, and be operated, in such a way that:
    1. the circumstances in which, and conditions subject to which, the benefit is available are clearly set out and readily accessible to the customers to whom it is offered;
    2. neither the receipt nor the value or amount of the benefit is:
      1. dependent on the customer gambling for a pre-determined length of time or with a pre-determined frequency; or
      2. altered or increased if the qualifying activity or spend is reached within a shorter time than the whole period over which the benefit is offered.
    3. if the value of the benefit increases with the amount the customer spends it does so at a rate no greater than that at which the amount spent increases; and further that:
    4. if the benefit comprises free or subsidised travel or accommodation which facilitates the customer’s attendance at particular licensed premises the terms on which it is offered are not directly related to the level of the customer’s prospective gambling.

New provision added

  1. If a licensee makes available incentives or reward schemes for customers, designated by the licensee as ‘high value’, ‘VIP’ or equivalent, they must be offered in a manner which is consistent with the licensing objectives.
    Licensees must take into account the Commission’s guidance on high value customer incentives.
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HVC Response 9 - Other issues
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Response from the Interim Experts by Experience Group to the consultation on HVC schemes