CMA launches enforcement action against five online gambling operators
Competition watchdog says it suspects a number of firms are in breach of consumer law for "confusing" sign-up conditions and account withdrawal restrictions
Five online gambling operators, including Ladbrokes and William Hill, face enforcement action from the UK’s competition watchdog for potential breaches of consumer law, it was announced this morning.
The Competition and Markets Authority (CMA) today said it would take action after an investigation found customers were not getting the deal they expected from sign-up offers due to “confusing” terms and conditions.
It also claimed some operators were “unfairly” preventing customers from withdrawing money from their accounts as minimum withdrawal amounts were far bigger than the original deposit, as well as a number of other hurdles.
No operators were named specifically by the CMA but the watchdog said they would be contacting the affected companies and “demanding” they changed their practices. If the companies fail to comply, they will be taken to court, the CMA said.
The Gambling Commission also said it was willing to use fines and licence revocations if firms were not compliant with consumer law.
EGR Intel can reveal that Ladbrokes and William Hill are among the five companies, with both firms planning to comply with the CMA’s demands.
A Ladbrokes spokesperson said: “We can confirm that the Ladbrokes brand is in dialogue with the CMA regarding its investigation into the online betting and gaming sector.
“Ladbrokes has always sought to offer customers a competitive and rewarding experience through use of promotions and we are committed to work with the CMA and move swiftly to make any changes which may be necessary.”
William Hill said in a statement: “We can confirm that we have today received a communication from the CMA and that we will be liaising with them to ensure that any concerns are appropriately dealt with.”
Nisha Arora, senior director for consumer enforcement at the CMA said: “People should get the deal they’re expecting if they sign up to a promotion, and be able to walk away with their money when they want to.”
She added: “Sadly, we have heard this isn’t always the case. New customers are being enticed by tempting only to find the dice are loaded against them. And players can find a whole host of hurdles in their way if they want to withdraw their money.
“That’s why we are today launching enforcement action where we think the law has been broken.”
Today’s announcement is the result of an investigation into the fairness of the online gambling industry launched by the CMA last October in collaboration with the Gambling Commission.
And the CEO of the Gambling Commission, Sarah Harrison, said licensees could also face an additional crackdown from the regulator if they are found to have breached UK consumer law.
“Gambling operators must treat customers fairly – but some have been relying on terms that are unclear with too many strings attached.
“Whilst the CMA takes enforcement action no how consumer legislation is followed, the gambling industry should be under no illusion that if they don’t comply with consumer law, we will see this as a breach of their operating licence, and take decisive action.”
In the same announcement, the CMA and the Gambing Commissino said they were opening a new investigation into practices that could restrict customers’ rights to withdraw money from their accounts.
The two bodies said some operators may be applying AML and responsible gambling checks in a restrictive way to preventing consumers from legitimately withdrawing funds from their gambling accounts.
Harrison added: “Identity checks are an important duty on the industry to prevent money laundering and to ensure responsible gambling. Where operators haven’t met those obligations, we have taken clear action.
“However, those checks cannot be used as an excuse to unduly restrict legitimate customers from withdrawing their funds. If the CMA finds specific consumer protection failings in this area, it will add further cause for the Commission to review how fairly operators are treating consumers.”
The CMA’s next next investigation update is expected in December.