Written question asked by Lord Mancroft (Conservative) on Monday, 8 September 2014, in the House of Lords. It was due for an answer on Monday, 22 September 2014. It was answered by Lord Newby (Liberal Democrat) on Monday, 22 September 2014 on behalf of the Department for Culture, Media and Sport.

Gambling: Internet

Question: To ask Her Majesty’s Government why, in the light of the Gambling Commission’s guidance, a software developer owning intellectual property in gambling software requires a licence if it amends the software, whereas a gambling operator owning the intellectual property in gambling software which sub-contracts the amendment of that software to another company does not.

Answer: Intellectual property relating to gambling software is only one of the factors that is relevant to understanding where control of the product sits. There are also other factors that are relevant when considering who needs a gambling software licence for example who is responsible for the design and functionality of the software and what the contract says in terms of responsibilities and liabilities. One relevant activity caught by Section 41 of the Gambling Act 2005 is adaptation, and so the person who actually undertakes that adaptation will need to be licensed.

Secondary information