The middle of the week saw the UK Gambling Commission (UKGC) update its official guidance on fair and transparent terms and practices which all gambling operators in the country must stick to.
The recent update was deemed necessary as the major gambling regulatory body in the UK has found that operators have often used terms of play that can be considered unfair. According to reports, in some cases, such policy provided operators with undue discretion to make decisions on the outcomes of various disputes with their customers, and to decide if and how the rules are applied in the first place.
The UK Gambling Commission provided several examples of such practices, including terms regarding the treatment of customers’ money where a gambling licence holder believes there has been fraudulent, irregular, or illegal play; terms under which gambling licence holders are allowed to confiscate so-called un-staked deposits of their users; terms under which gambling license holders are unfairly allowed to cut their customers’ potential winnings on open bets.
One of the examples provided by the UK gambling industry watchdog also included online game promotions under the terms of which a gambling licence holder is entitled to void real-money winnings in case a customer breaks staking rules unintentionally.
Gambling Licence Holders Have to Review Their Terms and Conditions, Gambling Regulator Says
The country’s gambling regulator also noted that it is also aware that the terms and conditions of some gambling operators are difficult to understand and that some companies offered special welcome bonus offers and wagering requirements that may encourage customers to lose track of their gambling.
The UKGC noted that gambling operation permit holders are now required to review their terms and conditions in order to make sure they are in line with the country’s relevant consumer protection laws and the Licence Conditions and Codes of Practice (LCCP). They must also take into account the updated guidance of the Commission. The country’s gambling regulator warned the companies operating in the local gambling sector that they are supposed to be able to provide evidence that their terms and conditions are fair and transparent, under the provisions of the LCCP.
Furthermore, the industry watchdog warned licensees that they should review their special offers, especially their welcome bonus offers and the ones featuring wagering requirements. The UKGC noted that, under the provisions of the Licence Conditions and Codes of Practice, bonuses and special rewards are required to be constructed in a socially responsible way.
The UK Gambling Commission shared that it does not expect the licence holders’ conditions, such as wagering requirements, to encourage excessive play, although companies often attach various terms and conditions to the bonus offers for their customers.
The country’s gambling regulator also noted that if consumers are not satisfied with the way a company responded to a complaint of theirs, they are given the opportunity to refer the response to an alternative dispute resolution (ADR) provider of their choice. In their term, such ADR providers are expected to make formal judgements on contractual and transactional disputes between gambling operators and their customers and consider the applicable consumer protection legislation when taking such disputes into consideration.
- Author
Daniel Williams
