Britain’s CMA Launches Investigation of Gambling Sites

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Monday, November 14th, 2016 | Written by Stephen Smith

When players take to the online poker tables, they do so knowing that there is a risk that they could lose their money. What they don’t expect, however, is for that loss to come not from wagers but from the site taking advantage of them by using dishonest business practices. Unfortunately, the UK’s Competition and Markets Authority (CMA) is concerned that this may be the case, and that online poker players are currently at risk of such unscrupulous practices by some sites.

As Nisha Arora, Senior Director for Consumer Enforcement, explains: “Gambling inevitably 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 investigating to see whether firms are breaking the law.”

Not All Sites Above Board

While many online poker sites operate above the board, not all do. In the past, for instance, there have been sites that shut their operations overnight, thus leaving players without access to their funds. In some instances, players are still waiting to receive compensation for money left in their player accounts because the company involved had irresponsibly co-mingled its player money with its general funds.

Fortunately, in the age of online poker regulation, this risk has been mostly eliminated, as government regulators require that licensed operators take steps to safeguard players’ funds, and proof of compliance is needed to remain in operation.

iGambling Promotions Confusing

But that doesn’t mean that everything is fair on today’s poker sites, as these days, companies may use other tactics to stack the deck against players in order to increase their profits and improve their bottom lines. As a result, the Competition and Markets Authority of the United Kingdom is looking to see if online poker operators in the country are doing that very same thing. The CMA is undertaking the investigation in coordination with the UK Gambling Commission (GC), and as Sarah Harrison, the organization’s Chief Executive, explains:

“We approached the CMA to work with them to address issues in the gambling sector and we are delighted to have agreed a joint program of work to ensure terms are fair and transparent.”

Likewise, in a statement issued in October, the CMA explained that it is currently investigating the terms and conditions of online poker operators in the UK, with a consumer notice explaining that the regulatory agency is specifically interested in the following:

– Withdrawal Limitations. Many online poker operators offer deposit bonuses for players in hopes of increasing activity on their sites. To get these bonuses, players typically must either play a certain number of games or place bets in excess of a certain total amount. The CMA is concerned about sites using complicated language to explain these deposit bonuses and basically making it difficult for players to withdraw money from their player accounts because of them.

– Changes to Bets and Odds. Another practice of concern to the CMA is altering or canceling player bets or changing odds on bets that have already been made. Sites typically say in their terms and conditions that they reserve the right to make these changes if odds are ever posted in error. The authority is investigating how often this occurs and under what circumstances to see if winnings are being unfairly limited.

– Appeal and Complaint Practices. Lastly, the CMA is looking to see if poker sites are giving players the ability to issue complaints or request appeals about company decisions. There is a concern that sites are requiring players to issue complaints within too small a time frame or are falsely telling players that there is no possible resolution to various complaints.

Investigation Ongoing

The CMA stated that at the conclusion of its investigation it will determine whether or not further action needs to be taken to better regulate the online gambling industry and ensure fairness for players. Where an online gambling company has been found to have flaunted the rule, a statement released by the CMA explains that this “may lead to further action, such as enforcement action, or guidance being issued by the CMA or the Gambling Commission, to secure improved compliance across the remote gambling sector.”