The UK Gambling Commission has issued an industry warning notice, saying it aware that some bookmakers are including non-disclosure clauses in cash settlements with consumers over complaints that include barring them from talking with the regulator.
The commission said it is investigating these arrangements.
In one case, reported by the Guardian newspaper, Ladbrokes agreed to pay nearly £1 million to the victims of a problem gambler who had stolen the money he was using to bet, in return for a pledge not to inform the commission.
The gambler, a British citizen who ran a property business in Dubai, later admitted to having stolen from his clients in order to fund his gambling, which ran up to £60,000 a day. His five victims made a complaint against Ladbrokes for allegedly accepting stolen funds, the bookmaker agreed to pay them a combined sum of £975,000, the report said.
The commission has said it is investigating the story and Ladbrokes has said it is cooperating with the regulator.
“Some of these agreements may have had the effect of preventing those consumers from reporting regulatory concerns to us, by either excluding disclosure to any third party or, in some cases, explicitly preventing customers from contacting the Gambling Commission,” the warning said.
“We recognize that in certain commercial contexts, use of NDAs is commonplace and such agreements, when used properly, can benefit both parties,” the warning said. “Examples of appropriate use might include resolving supplier or intellectual property disputes. This statement should not be taken to prohibit the use of NDAs in appropriate circumstances.”
The commission said it wants to ensure that consumers don’t feel they were “unable to notify the commission or other regulators or law enforcement agencies of conduct which might otherwise be reported”.
The commission also wants to make sure that those suffering gambling-related harm can freely discuss their gambling history with treatment providers, the warning said.
