Competition and Markets Authority launches probe into online betting companies’ complex small print
Online gambling firms are facing a crackdown from the UK's consumer rights watchdog over fears they may be "conning" their customers with opaque and unfair terms and conditions.
The Competition and Markets Authority (CMA) has today launched an investigation into the £4bn a year industry after complaints were raised by the official regulatory body, the Gambling Commission.
The CMA are worried about the prevalence of obscure terms and conditions and rules on sign-up bonuses and special rewards which are near-impossible to achieve and result in people playing for longer – and staking more – than they otherwise would have.
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The body, which has launched a string of high-profile investigations into sectors such as retail banking and the energy market, said it was worried special offers which often seem "too good to be true" occasionally turn out to be just that, with players unable to obtain their winnings and having little access to redress.
Several online gambling operators offer sign-up bonuses to lure customers. These can include free stakes, no-lose guarantees or special enhanced odds. However, they often come with strings attached, such as winnings only paid out as free bets rather than cash, or minimum staking requirements which require players to have made a significant number of bets before they can unlock any bonus winnings.
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Nisha Arora, senior director for consumer enforcement at the CMA, said: "Gambling inevitable involves taking a risk, but it shouldn't be a con. We're worried players are losing out because gambling sites are making it too difficult for them to understand the terms on which they're playing, and may not be giving them a fair deal. We are now investigation the see whether firms are breaking the law."
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The CMA said it has conducted an initial internal investigation which "highlighted examples of unfair treatment" and will now be conducting a more thorough probe. If they find evidence of wrongdoing, the CMA has a range of options, including legal recourse and fines to whip the industry into shape.
The CMA, which was formed by merging together the old Competition Commission and Office of Fair Trading, will announce an update on its investigation early next year.