Sometimes a licensee leaves the gambling marketplace. Sometimes consumers can get hurt if it happens. The UK Gambling Commission has reminded all licensees in the market that it should have measures in place to “make sure that consumers are not unnecessarily disadvantaged” if that happens.
The reminder comes a little over six months after Irish sports betting operator BetBright’s closure left a number of customers in limbo as to the status of their bets.
Citing that regulations should be fair and open, the commission highlighted a trio of expectations: bookmakers must conduct their businesses with integrity; maintain adequate financial resources and have due regard to the interests of consumers; and treat them fairly.
The regulator told SBCNews, “We are aware that, from time to time, gambling businesses leave the British market. This may be for a variety of reasons, ranging from insolvency to personal retirement. We are aware that businesses have been taking a variety of approaches to dealing with their consumers in these situations, and we want to make our expectations clear.”
The UKGC emphasized that licensees must be made aware of their liabilities and have sufficient plans in place to cover them. The license holder must also “warn consumers placing long-term bets that their stakes and winnings are not secured” in the event of insolvency. Consumers should also be offered further information regarding the level of funds protection in place, which is already a precondition to gaining a license.
Communication should include all available means including direct contact and wider messages on social media. And discharge all their liabilities to their consumers whenever possible.
“Even where a business becomes insolvent, we still may act against both the operating licensee and any relevant personal management licensees if there have been failings. We will also consider a licensee’s conduct in any future license application they make,” according to regulators.
