Outlines the Gambling Commission's approach to licensing gambling operators and their employees in key roles, under the Gambling Act 2005. These aim to ensure that entrants to the industry are suitable to hold operating and personal licences and will provide the best means of upholding the three licensing objectives. Considers responses to the consultation for licensing in Part 1 of the consultation document "Licensing, Compliance and Enforcement" (LCE), which focused on the detail of policies and procedures for granting licences to gambling operators and certain gambling personnel. Sets out a number of approaches and the regulatory impact of each proposal with its variant options, taking into account the consultation carried out on licence conditions and codes of practice. Makes clear why, on the evidence and analysis set out, the Commission has selected the chosen options as the licensing arrangements. Includes summary tables that support the chosen options as the most balanced and proportionate approach.