Betting reform
‘Unfair’ online sign-up deals targeted
ONLINE gambling companies will have to change their “unfair” sign-up deals or face a legal challenge after the Competition and Markets Authority (CMA) announced it was launching enforcement action against operators it believes to be breaking consumer law.
The CMA has been conducting an investigation with the Gambling Commission since last October into how the online gambling sector draws customers in with sign-up promotions and then does not allow them to withdraw money and quit while they are ahead.
It said that some customers “might have to play hundreds of times before they are allowed to withdraw any money”. It is also concerned that minimum withdrawal amounts are far larger than the original deposit, meaning customers have to bet more to take out their winnings.
Nisha Arora, the CMA’S senior director for consumer enforcement, said customers were finding “the dice are loaded against them” and were encountering “a whole host of hurdles” when trying to withdraw winnings.
Sarah Harrison, the Gambling Commission’s chief executive, said gambling companies “should be under no illusion” it will “take decisive action” if it believes their sign-up practices do not comply with consumer law.
“Gambling operators must treat customers fairly but some have been relying on terms that are unclear with too many strings attached,” she added.
The online gambling sector is worth £4.5bn in revenues after winnings are paid out but before costs are deducted, and attracts more than 6.5 million regular users in the UK.
The CMA will first demand changes to current practices at online gambling operators it deems to be abusing consumer law. The companies will then have time to offer their solution to the problems raised and, if the changes are unsatisfactory, the CMA can take the company to court.