UKGC warns industry over use of NDAs

The Gambling Commission (UKGC) has issued a formal warning to operators about the use of non-disclosure agreements (NDAs) in settlement agreements with consumers.

In a guidance to operators issued this morning, the UKGC said it was keen to ensure that non-disclosure clauses did not make consumers feel they were unable to notify the Commission or other authorities of conduct which might otherwise be reported.

Although the statement is meant as guidance, the UKGC confirmed it would undertake regulatory action against any operator which is deemed to be not taking the guidance into account.

The update comes after a Guardian story in December alleged Ladbrokes used non-disclosure agreements to stop one gambler from reporting his experience with the firm.

One of the additional aims of this new guidance is to ensure the use of NDAs does not stop those undergoing treatment for problem gambling from discussing their history with treatment providers.

However, the UKGC said the warning should not be taken to prohibit the use of NDAs in “appropriate circumstances”.

The UKGC said such an agreement would be improperly used if it was used to prevent breaches of regulatory requirements being reported to the Commission.

Under section 4.2 of the LCCP, licensed firms are obliged to work with the UKGC in an open and co-operative way and disclose any information which the UKGC may reasonably expect to know.

Section 15 of the LCCP requires operators to provide the commission with any and all information regarding suspected breaches of the Gambling Act.