The practices of online gambling firms continue to come under scrutiny, with the Competition and Markets Authority (CMA) launching enforcement action against a number of online gambling firms in respect of practices that may place unfair obstacles in the way of people withdrawing their money (whether as part of a promotion or not).
The action follows an investigation by the CMA to make sure the sector was not breaking consumer protection law, and that players are able to withdraw their own money when they play as part of a bonus promotion.
The CMA is particularly concerned about:
- daily, weekly or monthly limits on withdrawing funds that appear unreasonably low,
- potentially arbitrary short deadlines on the time customers have to verify their identity as a condition of withdrawing funds, sometimes providing for forfeiture of consumer’s funds if missed,
- and ‘dormancy’ terms that allow firms to confiscate funds after a certain period of inactivity.
The Gambling Commission has said it welcomes the action by the CMA.
“We support the CMA’s investigation - gambling firms should not be placing unreasonable restrictions on when and how consumers can withdraw money from their online gambling accounts,” commented Ian Angus, Programme Director at the Gambling Commission. “While the CMA continues its enquiry, we expect all online operators to look closely at the terms and practices they have in place and consider if they are fair on their customers.”
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