CMA to probe online gambling in UK

The Competition and Markets Authority (CMA) has today (Friday) launched an investigation into the treatment of customers by online gambling operators, in response to concerns raised by the UK Gambling Commission (UKGC).

In a statement, the CMA said the UKGC had been in contact over concerns related to potential breaches of consumer law, such as misleading promotions and unfair terms being used by companies to block players’ pay-outs.

The CMA will now issue information notices under consumer protection legislation, which will require evidence from firms as a first step to establishing whether enforcement action is required.

The national regulator is also calling on consumers that have experienced such problems to provide further details of the issues.

“Gambling inevitably involves taking a risk, but it shouldn’t be a con,” CMA senior director for consumer enforcement Nisha Arora said.

“We’re worried players are losing out because gambling sites are making it too difficult for them to understand the terms on which they’re playing, and may not be giving them a fair deal; we are now investigating to see whether firms are breaking the law.

“We’ve heard worrying complaints suggesting people may be lured into signing up for promotions with little chance of winning because of unfair and complex conditions.”

Sarah Harrison, chief executive of the UKGC, added: “We expect the gambling industry to ensure terms and conditions are not unfair; however, operators are still not doing enough.

“I continue to have concerns that many of these appear to bamboozle rather than help the customer make informed choices.

“Gambling, by its very nature, is always going to involve risk but customers must have faith that if they win, they will not end up feeling that the deck is stacked against them because of an obscure condition that they did not properly understand.

“We approached the CMA to work with them to address issues in the gambling sector and we are delighted to have agreed a joint programme of work to ensure terms are fair and transparent.”

In an initial review of the UK online gaming market, the CMA found more than 5.5 million people regularly take part in such activities, with the sector having expanded by 146% since 2009.

The CMA said it is concerned that players may be losing out as a result of being locked in to complex and strict requirements linked to gaming promotions that are difficult to understand and may be unachievable.

The regulator also said that players may be impacted as companies have a wide discretion to cancel bets or alter odds after bets have been accepted, while terms can restrict players’ ability to challenge an operator’s decision.

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