Gambling Commission on Withdrawal Issues and Compliance

The Gambling Commission has discussed the key issues and expectations concerning account withdrawals for the online gambling sites in Britain.  

The report is by Andrew Rhodes, Chief Executive of the Gambling Commission.

It follows on from an item published in July 2023 regarding the issue of customers experiencing delays when withdrawing funds from their accounts.   

The Gambling Commission made a commitment in their  Business Plan and Budget 2023–2024 to undertake work to ensure that gambling is conducted in a fair and open way, including where restrictions are imposed by operators on withdrawals. 

The commission stated: “Our Contact Centre continues to receive around 2,000 complaints a year about delays to withdrawals.”  

In this most recent article, Mr. Rhodes highlights several problems that operators have been facing, including: 

1. Delays in withdrawals: The Commission has received around 2,000 complaints a year about delays in withdrawals, which is a significant number of individual instances. 

2. Lack of transparency: Operators often fail to provide customers with a clear explanation of why they are requesting additional information or delaying withdrawals. 

3. Misleading customers: Some operators have been found to mislead customers about the reasons for their decisions, which is unacceptable. 

4. Confiscation of customer deposits: In some cases, operators have sought to confiscate customer deposits without following the correct procedures. 

Lessons for Operators Around Relationship With Customers 

The Gambling Commission stated: “It is not acceptable for operators to introduce friction when a customer tries to withdraw from their account.” 

The article provides several lessons for operators, including: 

1. Explain the reason for requesting additional information: Operators should provide clear and transparent reasons for requesting additional information from customers. 

2. Verify customer information earlier: Operators should verify customer information earlier in the relationship rather than waiting until a withdrawal request is made. 

3. Monitor accounts on an ongoing basis: Operators should monitor customer accounts on an ongoing and risk-sensitive basis to identify potential issues earlier. 

4. Provide timely explanations: Operators should provide timely explanations to customers about any delays or restrictions on their accounts. 

5. Comply with regulatory obligations: Operators must comply with regulatory obligations, including anti-money laundering and fraud prevention requirements. 

The Gambling Commission stated that: “Casino operators should note that under The Money Laundering Regulations 2017, the source of wealth checks are mandatory in relation to Politically Exposed Persons (PEPs), and in the case of business relationships with customers situated in high-risk third countries, or transactions where either of the parties to the transaction are residents of a high-risk third country. 

Operators must adopt a risk-based approach to comply with their AML and Counter-Terrorist Funding (CTF) responsibilities. 

Further information on the risk-based approach can be found in their guidance for casino operators and guidance for non-casino operators. 

Transparency, Compliance and Fairness are Key Elements for Compliance 

The article also highlights the importance of License Condition 7 of the LCCP, which requires operators to ensure their terms are not unfair within the meaning of the Consumer Rights Act 2015. 

The Competitions and Markets Authority (CMA) has provided guidance on unfair terms provisions in the Consumer Rights Act 2015, and operators must comply with these requirements.