The United Kingdom Gambling Commission (UKGC) has issued guidance for gambling businesses that close down their operations.
This guidance issue comes after Betbright sold its sports betting platform to 888, before telling its customers that all unsettled single bets would be made void.
The UKGC stated: “Even where a business becomes insolvent, we still may act against both the operating licensee and any relevant personal management licensees if there have been failings. We will also consider a licensee’s conduct in any future licence application they make. If we consider there has been wrongdoing, such as fraud or illegal trading, we can refer this to the relevant enforcement agency.”
The Gambling Commission expects all gambling businesses to have plans in place and take steps to make sure that consumers are not unnecessarily disadvantaged if they do have to close for whatever reason. The best outcome for consumers depends on the specific circumstances. In case a business in insolvent, unable to pay its debts, then it cannot legally carry on trading.
“On an ongoing basis, we expect businesses to do the following: be aware of their liabilities and check they can cover these; warn consumers placing long-term bets that their stakes and winnings are not secured in the event of insolvency; give consumers information about the level of funds protection in place. This is a requirement of our license conditions.”
“If the business decides to close, we expect them to do the following: provide clear and concise information to consumers; show they are in control of the situation by keeping consumers updated and giving information on any potential routes for redress (communication should include all available means including direct contact and wider messages on social media); discharge all their liabilities to their consumers whenever possible.”
More About the UKGC
The Commission was set up under the Gambling Act of 2005 in order to regulate gambling in Great Britain together with licensing authorities. It also regulates the National Lottery and issues licenses for license holders, gambling premises and heavily promotes responsible gambling.
It operates as an executive non-departmental public body of the Government of the United Kingdom. The main goal of the Commission is to keep crime away from gambling and to protect the end-users. They also consult the government on gambling-related issue.
Their motto is “Keeping Gambling Fair and Safe for All” and they’ve been doing a good job.
“UKGC Issues Guidance for Gambling Businesses that close down their Operations”, Niji Narayan, europeangaming.eu, October 4, 2019.