CMA to take action against online gambling companies

The Competition and Markets Authority announced on Friday that it will be taking action against online gambling companies it suspects of breaking consumer law.

The investigation, part of a joint programme of work with the Gambling Commission to tackle issues around fairness and transparency, has identified a number of operators engaging in practices likely to be breaking consumer law. The competition watchdog expressed concern that people often don't get the deal they are expecting as sign-up promotions - designed to attract players by offering bonus cash when they put in their own money - come with a range of terms and conditions that are often confusing, unclear and even unfair.

The watchdog pointed out that customers might have to play hundreds of times before they are allowed to withdraw money, meaning they don't have the choice to quit while they’re ahead.

Even outside of promotions, there are concerns that some operators are preventing customers from withdrawing money from their accounts.

Nisha Arora, CMA senior director for customer enforcement, said: "We know online gambling is always going to be risky, but firms must also play fair. People should get the deal they’re expecting if they sign up to a promotion, and be able to walk away with their money when they want to.

"Sadly, we have heard this isn’t always the case. New customers are being enticed by tempting promotions only to find the dice are loaded against them. And players can find a whole host of hurdles in their way when they want to withdraw their money."

The CMA asked that anyone who has had difficulties withdrawing their money inform them in order to help with the investigation.

Gambling Commission chief executive Sarah Harrison said: "Gambling operators must treat customers fairly - but some have been relying on terms that are unclear with too many strings attached.

"Whilst the CMA takes enforcement action on how consumer legislation is followed, the gambling industry should be under no illusion that if they don’t comply with consumer law, we will see this as a breach of their operating licence, and take decisive action."