By Competition and Markets Authority (CMA)

UK: Gambling companies compelled to stop misleading 'free bet' offers

CMA project director George Lusty said: "Gambling always carries a risk, but players should never face unfair restrictions that prevent them from getting at their money.
2018-02-01
Reading time 1:53 min
The competition watchdog has warned gambling companies that if they fail to end misleading online 'free bet' offers they will have to face regulatory action from the Gambling Commission. It follows an investigation into complaints that betting firms have been "trapping" players' money and making them play for longer.

The Competition and Markets Authority (CMA) had launched an investigation in 2016 into whether the £4.7 billion online gambling sector was breaking consumer protection law through the promotions. The offers were designed to attract players to casino-like gaming websites, such as roulette and poker, by giving bonus funds when players put in their own money.

Leading betting firms Ladbrokes, William Hill and PT Entertainment have now agreed to change the promotions. The new changes will mean that players will not need to play multiple times before they can withdraw their own money.

The CMA says the changes must be adopted across the sector, and firms that fail to do so will face regulatory action from the Gambling Commission.

CMA project director George Lusty said: "Gambling always carries a risk, but players should never face unfair restrictions that prevent them from getting at their money. Firms mustn't stack the odds against players by putting unfair obstacles in their way or making it difficult for them to stop gambling when they want to. We welcome the commitment from these leading firms to address the problems our investigation uncovered, by making important changes to their terms and conditions. We now expect others to follow, and look forward to the Gambling Commission's continued work to make sure all operators in this sector play fair with their customers' money."

Under the changes firms must ensure any restrictions are made clear to players and cannot rely on vague terms to confiscate players' money.

Gambling Commission executive director Sarah Gardner said: "We expect all Gambling Commission-licensed businesses to immediately review the promotions and sign-up deals they offer customers and take whatever steps they need to take, to the same timescales agreed by the three operators, to ensure they comply.

"Operators should be very aware that we will continue to work closely with the CMA to ensure customers are getting a fair deal across the gambling industry."

Brian Chappell, founder of campaign group Justice4Punters, has welcomed the move.

"It's nearly 30 months to the day since Justice for Punters sent evidence of the use of unfair terms and conditions to the CMA and Gambling Commission," he said.

"We're delighted they decided to work together on this investigation.

"Since that day millions have been lost and many people have been conned by the T&Cs in these promotions, but hopefully this will now stop."

William Hill said it has worked with the CMA to ensure its concerns have been met.

"We welcome the standards and principles that the CMA has outlined and we look forward to their adoption across the industry," it added.

Ladbrokes said the new rules would improve transparency.

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