UK Gambling Commission advocates increased consumer safeguards amid bankruptcy scenarios.
The UK Gambling Commission (UKGC) has recently released new measures aimed at safeguarding customer funds in the case of insolvency. These measures came about due to the collapse of British online bookmaker BetBright in March 2020. Here's a summary of the situation:
Emergency Plans Developed
The UKGC has released new regulations requiring UK-licensed gambling companies facing financial difficulties or forced market exit to take necessary steps to protect customer funds. Starting immediately, these companies must ensure that all customer funds in their accounts are safeguarded. Their general terms and conditions must also ensure payouts even after the business has closed.
Additionally, these companies are required to create contingency plans to implement UKGC's requirements in case of bankruptcy. The primary focus is to prevent financial losses for customers. A UKGC representative emphasized, "If businesses have to close for any reason, we expect all gambling businesses to be prepared and have plans in place to ensure customers aren't unnecessarily disadvantaged."
Customer Protection
The UKGC maintains the right to hold companies responsible for any losses incurred due to insolvency if they fail to comply. These companies must ensure they can meet their financial obligations to customers at all times. Betting customers with ongoing bets should be made aware that winnings may not be paid out in the event of insolvency.
To increase transparency, betting providers will need to inform their customers about the available financial reserves in cases of insolvency. They will also have to inform the UKGC about any incomplete betting transfers in "special business operations." The UKGC spokesperson stated, "When a company announces it's closing, we expect it to provide clear and concise information to us and customers. Customers should be made aware they're in control of the situation by keeping customer accounts up to date."
These guidelines are now a mandatory license condition for sports betting offers. The industry's response is still pending. It remains unclear how quickly these measures will be implemented.
The BetBright Incident
The case of BetBright, a British online bookmaker, influenced the new regulations. The company's business was shut down following the 888 takeover in March 2020. Economic experts believe the closure may be due to planned tax increases in the UK and Ireland. However, what raised concerns was BetBright's announcement that it wouldn't meet its financial obligations in the future.
Fortunately, BetVictor agreed to take over all outstanding debts, allowing former BetBright customers to claim their money. The UKGC stated that it couldn't force any company to stay in business until all debts were repaid but acknowledged the need for transparent procedures. The future aim is to avoid such uncertainties in the future. Only time will tell if these measures prove successful.
GAMSTOP License Condition
Earlier this year, the UKGC declared that implementing the British self-exclusion system GAMSTOP would become a new license condition. Launched by the RGA (Remote Gaming Association) in 2018, GAMSTOP is a non-profit tool designed to protect players and currently has over 50,000 users in the UK. The UKGC aims to establish GAMSTOP further but is facing concerns about its reliability. Until then, more developments are needed to make GAMSTOP one of the "most important license conditions."
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Source: www.onlinecasinosdeutschland.com
