Commercial
B2C
Definition
B2C (business-to-consumer) describes the licensed operator that serves players directly. It holds the licence and the regulatory relationship, and carries the compliance and tax obligations even when its technology comes from B2B suppliers.
Key takeaways
- A B2C operator is the licensed entity that serves players directly and owns the player relationship.
- Licensing, responsible gambling, AML, KYC and tax obligations sit with the operator, even when B2B partners supply the technology.
- A supplier's failure becomes the operator's regulatory problem first, which is why B2C due diligence on B2B partners is so rigorous.
Why it matters
The B2C operator is the legally accountable entity in any regulated market. The licence is held by the operator, the responsible gambling obligations sit with the operator, the AML and KYC duties sit with the operator, the tax is paid by the operator, and the player relationship is owned by the operator. Even when most of the underlying technology and content is supplied by B2B partners, accountability cannot be outsourced.
This is why operator due diligence on B2B suppliers is so rigorous. A failure by a payments processor, a content provider serving non-compliant material, or a KYC vendor missing flags will be the operator's regulatory problem first. The operator's compliance and risk teams sit between the supplier ecosystem and the regulator, translating B2B service into regulator-compliant B2C activity.
Frequently asked questions
Can a B2B supplier hold a licence?
Many regulated markets require B2B suppliers to hold their own licence alongside the operator licence. The UKGC, MGA, and most US states license suppliers as well as operators. The B2B licence covers technical standards and corporate good standing. The B2C licence covers the consumer-facing offering.
Who is liable if a B2B supplier fails compliance?
The operator is liable to the regulator for the offering, regardless of whose technology caused the failure. The operator may have contractual recourse against the supplier, but the regulator's relationship is with the licensed B2C entity.