UKGC Can't Easily Track Operator Ownership
FOI reveals regulator lacks extractable data on significant foreign shareholdings in its licensees.
A Freedom of Information response shows the UK Gambling Commission cannot easily retrieve data on foreign ownership of its licensees. The regulator cited cost and time constraints, revealing that crucial ownership information is not held in a readily searchable format.
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Key Finding: Regulator Cites Cost to Retrieve Ownership Data
A Freedom of Information (FOI) response has revealed that the UK Gambling Commission (UKGC) does not hold data on the ownership of its licensees in a readily accessible format. The regulator stated it would be too costly and time-consuming to identify which operators have significant shareholders on foreign stock exchanges.
On 8 March 2023, a request was made for the number of UK gambling licensees that have a shareholder with more than a 3% stake listed on public stock exchanges in Canada, the United States, Australia, or Gibraltar. The request also asked for information on the systems these licensees use to monitor such ownership.
While the UKGC confirmed it holds this information, it refused to provide it, citing Section 12 of the Freedom of Information Act. This exemption allows public bodies to decline requests where the cost of fulfilling them would exceed £450, or 18 hours of staff time.
Why This Data Matters
Tracking who owns and controls gambling companies is a cornerstone of UK regulation. The Licence Conditions and Codes of Practice (LCCP), specifically condition 15.2.1, requires licensees to report when any single entity acquires a shareholding of 3% or more. This rule is designed to ensure the suitability of those influencing licensed operators and to prevent criminal or inappropriate control.
For consumers, the integrity of a gambling operator is paramount. Knowing that the regulator has a firm grasp on the ownership structures of these companies provides assurance that they are being run by suitable individuals and organisations. This FOI response indicates that accessing a complete picture of this ownership, even for the regulator itself, is not a simple task.
Details of the Refusal
The UKGC's response stated that the requested information is "not stored in an extractable format." To answer the query, staff would be required to "review each licensee record" individually.
Key points from the response include:
- Information Held: The Commission confirmed it possesses the information requested.
- Cost Exemption: It estimated that locating, retrieving, and extracting the data would take "in excess of 18 hours."
- Manual Search Required: The need to check a "high volume of records" individually was given as the reason for the high time estimate.
The Commission noted that if the request were narrowed, it might be able to provide some data within the statutory time limit.
Significance for Regulatory Transparency
The refusal highlights a potential gap in the UKGC's data management capabilities. The fact that crucial information on licensee ownership—a key area of regulatory focus—is not held in a centrally searchable database raises questions about the efficiency of its oversight processes.
While the UKGC does receive and hold this information on a per-licensee basis, its inability to analyse it in aggregate without a significant manual effort suggests a lack of high-level visibility. For consumers and industry observers, this lack of readily available data obscures a full understanding of the ownership landscape of the UK's licensed gambling market.