Key Function

A key function is an important function, role or task carried out by a person in connection with a gaming service or a gaming supply.

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Key functions may only be provided by natural persons. In accordance with Part V of the Gaming Authorisations Regulations, persons who provide a key function to a licensee shall be required to hold a certificate of approval issued by the Authority and each licensee shall notify the Authority, the key persons who perform one or more key functions for such licensee.

For a B2C licensee that provides remote gaming services and, the key functions shall be the following:

(a) The chief executive role, or equivalent;

(b) The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, the processes of making payments to, and receiving payments from, players, the management of the risk strategies for the operation of the licensee, and the prevention of fraud to the detriment of the licensee;

(c) Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to, obligations relating to responsible gaming, obligations relating to player support, obligations relating to the rules relating to marketing, advertising and promotional schemes, and where applicable, obligations relating to sports integrity;

(d) The legal affairs of the licensee, including but not limited to matters relating to contractual arrangements and dispute resolution;

(e) The adherence to applicable legislation relating to data protection and privacy;

(f) The prevention of money laundering and the financing of terrorism;

(g) The technological affairs of the licensee, including but not limited to the management of the back-end and control system holding essential regulatory data, and the network and information security of the licensee; and

(h) Internal audit.

Any B2C licensees that operate a controlled gaming premises shall also be required to appoint someone for the Management of the surveillance systems of the gaming premises.

For a B2C licensee that operates a gaming premises which is not a controlled gaming premises, the key functions shall be the following:

(a) The chief executive role, or equivalent;

(b) The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, the processes of making payments to, and receiving payments from, players, the management of the risk strategies for the operation of the licensee, and the prevention of fraud to the detriment of the licensee;

(c) Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to, obligations relating to responsible gaming, obligations relating to player support, obligations relating to the rules relating to marketing, advertising and promotional schemes, and where applicable, obligations relating to sports integrity;

(d) The legal affairs of the licensee, including but not limited to, matters relating to contractual arrangements and dispute resolution;

(e) The adherence to applicable legislation relating to data protection and privacy;

(f) The prevention of money laundering and the financing of terrorism;

(g) Operation of the urn or any other gaming device which requires human intervention used to generate the result of the game in bingo halls:

Provided that where the operation of such urn or other device is supervised by an additional person who is not an officer of the Authority, it shall be sufficient for either the person operating the urn or other device or the person supervising to be approved to provide such key function;

(h) Management of the pit, including the supervision of the croupiers and assistants and the management of their work, where applicable;

(i) Management of the gaming area, including the supervision thereof to preclude fraud by customers, and the resolution of customer disputes

(j) Management of the surveillance systems of the gaming premises, where applicable; and,

(k) Internal audit.

For a B2B licensee, the key functions shall be the following:

(a) The chief executive role, or equivalent;

(b) The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, and the management of the risk strategies for the operation of the licensee;

(c) Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to obligations relating to sports integrity where these are applicable;

(d) The legal affairs of the licensee, including but not limited to, matters relating to contractual arrangements and dispute resolution;

(e) The adherence to applicable legislation relating to data protection and privacy, where applicable;

(f) The technological affairs of the licensee, including but not limited to, the management of the back-end and control system holding essential regulatory data, and the network and information security of the licensee; and

(g) Internal audit.

For the National Lottery licensee, the persons performing key functions shall be the following:

(a) The chief executive role, or equivalent;

(b) The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, the processes of making payments to, and receiving payments from, players, the management of the risk strategies for the operation of the licensee, and the prevention of fraud to the detriment of the licensee;

(c) Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to, obligations relating to responsible gaming, obligations relating to player support, obligations relating to the rules relating to marketing, advertising and promotional schemes, and where applicable, obligations relating to sports integrity;

(d) The legal affairs of the licensee, including but not limited to, contractual arrangements and dispute resolution;

(e) The adherence to applicable legislation relating to data protection and privacy;

(f) The prevention of money laundering and the financing of terrorism; and

(g) The persons who hold a permit to sell national lottery games.

Conflict of Interest and Compatibility of Roles

In terms of article 9 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018), a number of roles are considered to be incompatible with one another by their very nature and, as such, a given individual will not be authorised to fulfil such conflicting roles simultaneously.

As a general rule, business centred roles are considered to conflict with compliance-based roles. Resultantly, the Key Functions relating to the chief executive role or equivalent are considered to be incompatible with the Key Functions relating to data protection, compliance, and those relating to the prevention of money laundering and terrorist financing.

The Key Function relating to the prevention of money laundering and terrorist financing is also considered incompatible with that relating to data protection, whereas the Key Function related to internal audit is considered wholly incompatible with all other Key Function roles. For the sake of clarity, ultimate beneficial owners and non-executive directors shall also be precluded from taking on any Key Functions relating to the prevention of money laundering and terrorist financing and internal audit.

An exhaustive list of roles that are considered incompatible by nature to the extent that an individual would not be authorised to exercise them simultaneously is comprehensively illustrated below: