UKGC threatens further action if operators don’t remove “unfair obstacles” to withdrawals

The Gambling Commission has warned operators it could take further action if they continue to place “unfair obstacles” in the way of people withdrawing their money.

Speaking at a meeting of the All Party Parliamentary Betting and Gaming Group this week, Gambling Commission programme director Brad Enright said the regulator was committed to protecting consumers in this area.

“This is exactly the sort of issue our strategy commits us to tackling, so if the escalating use of our regulatory powers does not bring about the improvements required, then the case for further regulatory intervention or policy proposals will grow stronger,” Enright said.

The Group heard that customers were often asked for ID verification only when they placed large bets or asked to withdraw funds.

The Commission said it is was currently awaiting the results of Competition and Markets Authority (CMA) enforcement action against operators found to be using these practices, before taking further steps of its own.

Among the enforcement measures being considered by the CMA are the implementation of short deadlines to verify ID or face forfeiture of funds and the implementation of dormancy terms/fees designed to deal with the issue of withdrawals not being paid to consumers.

Enright said it “should be a source of embarrassment to the industry that the GC and CMA is again being required to step in to protect their consumers.”

Speaking on behalf of the online industry, Clive Hawkswood, CEO of the Remote Gambling Association, said most of the delays in payment of withdrawals to consumers were due to companies complying with regulatory requirements like AML and anti-terrorism checks.

Hawkswood added: “Too many companies have left some of these checks until withdrawal when they could and should have been done earlier”, adding that current AML and POCA checks make it “impossible for the gambling commission to impose hard regulatory time limits that would be in any way meaningful beyond those in current contract law.”

He called on all parties to accept and understand the problem and look for a proportionate response to the issue.

Brian Chappell, founder of advocacy group Justice for Punters, called for implementation of laws to ensure that a bet is a “legally enforceable transaction”, so when the bet is taken it must be paid out and withdrawable within five working days, unless there is evidence of criminal activity.

Chappell also called for a blanket ban on promotions and the banning of betting exchanges as a way of protecting consumers.