More disgruntled gambling consumers in the U.K. are suing because they have no other recourse in disputes with operators. Industry experts expect this to increase. This has redoubled efforts by some to create a national gambling ombudsman, Next.io reported May 2. IBAS, an independent service, is lobbying for the job.
Such an official is called for in the gambling white paper the government published in April 2023. Then, the government promised to work with stakeholders and industry members to create an independent ombudsman who could address the 2,000 gambling complaints made annually.
The Department for Culture, Media & Sport (DCMS), which oversees gaming, declared, “At present, customers seeking personal redress currently have no choice but to pursue potentially costly and uncertain court action.” The body’s remit would include adjudicating complaints on social responsibility and gambling harm. However, the promise hasn’t been carried out yet.
Until that happens the Independent Betting Adjudication Service (IBAS) has said it is ready to do that job, “with a robust consumer-focused plan, pending the support of key stakeholders and agreement of an appropriate funding model.” IBAS notes that it has many years of experience adjudicating gambling disputes. It added, “individuals with disputes against gambling operators must have access to fair and impartial dispute resolution – a need currently unmet.”
Ellis Jones Solicitors has successfully sued to reclaim £6 million in gambling losses for its clients since it was established seven years ago. Partner Paul Kanolik told Next.io that many cases that have involved operators allow vulnerable consumers to continue gambling, ignoring signs that they were addicts or couldn’t afford to gamble.
Such plaintiffs know that the U.K. Gambling Commission lacks the authority to force reimbursements, he said. It can investigate and impose fines, but that rarely results in losses being returned. Other dispute resolution services avoid such complaints.
Kanolik said, “This underscores the need for a structural overhaul. In other industries, like finance, an ombudsman serves as an independent adjudicator, addressing a wide array of complaints.” He added, “I believe the gambling industry could greatly benefit from a similar mechanism.”
The Betting and Gaming Council (BGC) said it is working with the government, but lacks the authority to create an ombudsman. A spokesman told Next.io “The BGC has repeatedly called for the establishment of a mandatory ombudsman for the regulated sector.”
