Gambling - and the Fourth Money Laundering Directive - Update

The EU is currently (and has been since early 2013) consulting on the latest set of recommendations.

One thing which are certain of is that Gambling is to move into the regulated sector which will include operators ensuring that they have various measures in place such as a Money Laundering Officer, Money Laundering Policies and appropriate staff training to name but just a few.

There is a proposed caveat though which is currently contained in the draft version of the Directive which allows Member States to ask for an exemption to be made where they can show a sector is very low risk for money laundering. The caveat may of course be removed before the final version is issued albeit at the present moment it looks likely to remain.

With regards gambling the main area which will be targeted by the Directive is that of bookmakers however other types of operators including bingo and machine operators may be caught. If bingo and gaming machines are caught then this will no doubt cover those premises which operate with the requisite Operating Licence and Premises Licences for that activity. However this begs the question what is the position in relation to pub operators who operate with low level bingo, a form of equal chance gaming, or with gaming machines whether through a notification for 2 gaming machines or Licensed Premises Gaming Machine Permit for 3 or more machines? At the moment the Gambling Commission have confirmed they do not know whether these aspects may be covered and our view would be that they would not, however, this is something which operators of licensed premises need to be aware of going forwards.

The Gambling Commission are currently preparing their own Risk Assessment which is likely to be published in April 2015 and which we expect to have a bearing upon the decision of the Treasury who will decide what comes under the ambit of low risk.

We shall keep you updated.