Criticisms Mount Over Length of Employee Bonus Periods
The UK's consumer protection body, CMA, is once again criticizing the bonus terms and conditions in the gambling industry. Some providers' rules are confusing, unfair, and even violate legal standards, which could potentially spell the end for bonuses as a marketing tool. Bonuses have been an essential part of online casinos and bookmakers' strategies for years. Stricter regulations could put an end to this practice.
During the "Raising Standards" event organized by the Gambling Commission in Birmingham, George Lusty from the CMA discussed consumer protection in the online gambling sector. It was primarily the promotional offers that were causing issues for customers. Even after thoroughly examining the terms and conditions, it's still challenging to understand how a bonus's playthrough requirements will work out. This makes it impossible for customers to make informed decisions about accepting such offers. Only after depositing money would they encounter issues they didn't anticipate. This practice is deceiving and in conflict with the transparency requirement, a crucial aspect of consumer protection directives. The CMA's investigation was sparked by a surge in customer complaints.
Lusty mentioned a few particular examples demonstrated to the CMA by gambling providers. For example, some bonuses can only be used on a limited range of games. Customers must be informed that winnings earned on other games and winnings in these aren't valid if the promotion has these conditions. Moreover, the interaction of multiple active bonuses must be explained more transparently so that customers can make informed decisions. There was a lack of sufficient overlays and warnings - customers were mostly left in the dark about whether bets placed contributed to meeting wagering requirements.
The problem of combined balances
It's not just about casinos providing information but also about illegal limitations in their terms and conditions. For instance, it's sometimes impossible to withdraw winnings made with your own balance if an ongoing bonus is in play. The bonus's wagering requirements block the entire balance, putting the customer at a disadvantage with no compensation. The fact that customers were denied payment without even touching the bonus balance can't be justified by the fact they agreed to the T&C. Players would accept the bonus in good faith, assuming that only the bonus's restrictions would apply.
George Lusty made it clear that the mixing of bonus funds and customer money must cease and that it should be evident which funds are restricted at all times. Customers should be able to withdraw their own funds at any moment. The CMA official is following the Gambling Commission's guidelines, which have already been suggested by their leader, Sarah Harrison, months ago - but nothing has changed.
Did the providers go too far?
What the UK authorities want is a complete restructuring of promotional offers in online gambling. Many casinos and bookmakers use similar bonus structures, with just a few exceptions (like bgo and PlayOJO). However, it's worth noting that it's already possible to decline bonuses. The fact that it's sometimes necessary to contact customer service instead of just clicking a button is a concern. The question is how providers will respond to the new CMA and UKGC requirements. Non-compliance could lead to legal action and penalties. But creating alternative advertising methods will not be easy, as promotional offers don't differ significantly in terms of content and there are few unique features that could be marketed. Providers try to compete through seemingly attractive bonus offers, only to attach complex and, as we've learned, unfair conditions to them.
This behavior frustrates customers, especially those new to online gaming. The industry has crossed a line and must now find a way out. Despite numerous warnings in the past, self-regulation hasn't been achieved, possibly due to the fear of lagging behind the competition. The fact that the government is now intervening is a positive development for consumer protection. Unfortunately, there's no viable regulation in Germany, even in the foreseeable future.
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Source: www.onlinecasinosdeutschland.com