Customer funds disclosure to customers - clarification for non-remote operators
15 December 2014
We set out advice about implementing licence conditions relating to the protection of customer funds (opens in new tab) (licence conditions 4.1.1 and 4.2.1) in our advice note for operators in November 2014.
Further to some queries we have received about the information which must be made available to customers by non-remote operators about customer funds, we have updated the advice note to make it clear that:
- Operators are required to disclose information to customers about the level of protection only if the operator holds customer funds to the credit of a customer for future gambling (such as in an individual account for the customer). If you do not hold customer funds, no disclosure to customers is required at all.
- Non-remote operators are not required to segregate customer funds, although some operators may choose to do so. Remote operators are required to segregate customer funds as a minimum.
- Non-remote operators who do not segregate customer funds can simply include a statement such as ‘Customer funds are not protected in the event of insolvency’. It is not necessary to refer to the customer funds ratings system in this scenario. See updated paragraphs 3.5 and 3.7 of the advice note.
- Operators who hold ancillary remote bingo or ancillary remote casino licences are not required to provide separate information about customer funds for these products. If you are a non-remote operator who holds customer funds, and you also offer ancillary remote products, a general statement that customer funds are not protected is sufficient.
- However, operators who offer a single wallet to customers across both their remote and non-remote products must take care to ensure that any statements they provide to customers meet the requirements for disclosure to customers. If you offer a single wallet to customers, it is likely that you would segregate all customer funds and explain to customers that you meet the ‘basic’ level of protection according to the Gambling Commission’s ratings system. See updated paragraph 3.10 of the advice note.
We will continue to update the advice note to reflect any further queries that we receive from operators.
Note to editors
- The Gambling Commission (the Commission) regulates gambling in the public interest alongside its co-regulators local licensing authorities. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. Subject to these overriding public protection objectives, as regulator of the National Lottery the Commission monitors and challenges Camelot to raise the maximum amount for good causes. The Commission also provides independent advice to government on gambling in Britain.
- The Commission and local licensing authorities are responsible for licensing and regulating all gambling in Great Britain other than spread betting, which is the responsibility of the Financial Conduct Authority (FCA) (opens in new tab).
- See the Terms & Conditions section of our website for information on legal advice (opens in new tab).
For all media enquiries, please contact the Gambling Commission press office.