Under section 116 of the Gambling Act

UKGC initiates review into FSB Tech over its licensee Blackbet

The action is only likely to increase calls for more stringent rules over the white label structure allowed under the Gambling Act.
2019-08-26
Reading time 2:15 min
The gambling authority said FSB had "voluntarily suspended activities on its Blackbet website" but that this suspension "will not prevent the operator from paying out customers."

The UK Gambling Commission (UKGC) has instigated the review of FSB’s license under section 116 of the Gambling Act, which authorizes it to take such action if it:

  • Suspects that conditions of a license have been or are being breached
  • Believes that the license holder or any person connected with the licensed activities has been convicted of a relevant offense in Great Britain or abroad’
  • For any reason suspects that the license holder may be unsuitable to perform the licensed activities’

It is the second white label issue that FSB has experienced this month. The voluntary Blackbet suspension comes shortly after FSB said it was reviewing its relationship with European operator 1xBet after a probe by The Sunday Times saw the UKGC step in.

FSB is yet to release an official comment to the press but is understood to be cooperating with the UKGC, SBC News reports. The platform provider has further instructed any Blackbet customers who have queries related to their accounts to contact: [email protected]

The action is only likely to increase calls for more stringent rules over the white label structure allowed under the Gambling Act, with Labour Deputy Leader Tom Watson one of the biggest advocates for a wholesale review of the format. Watson has already proposed that all white label operators should have to reapply for a full license to ensure they are up to regulatory standards.

See Yogonet's interview with Tom Watson.

Writing in The House magazine in June, Watson said: “Recent figures show that some of these white labels donated only £50 last year to GambleAware, the UK’s main commissioner of research, education and treatment services in reducing gambling-related harm. It is obvious to anyone that the system is in a mess.

“I believe that a UK gambling license should be a hallmark of credibility and trust. It should not be seen as a platform for overseas operators to use the reputation of British sport as a marketing tool for their own domestic audience, whereby the benefits of the UK market are enjoyed, but nothing is given back to address the harm that is caused. That is why I am calling for a full review of all remote gambling licences that have been issued since 2014, when changes to the legislation came into effect.

“A review of this kind would mean a total overhaul of our current register of online gambling licenses. It would mean that license-holders have to reapply for the privilege of operating in the British market. If they fail to demonstrate corporate responsibility or adequate measures to prevent harm, these operators should face what I call the ultimate sanction: not just a fine, but the revocation of their license.”

Given the enhanced spotlight now being placed on white label operations, it is perhaps not surprising that the Gambling Commission is also being seen as taking a greater interest in that area of business.

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