Posted in Industry September 27, 2018
UKGC and CMA Actions
Unfortunately, online gambling companies continue to exploit loopholes in customer protection laws. However, regulatory agencies like the UK Gambling Commission (UKGC) and the Competition and Markets Authority (CMA) are actively working to enhance the quality of B2C formats.
We consistently emphasize the importance of choosing regulated casinos, such as those licensed by the UKGC, in our news articles, reports, and reviews. Following this advice helps gamblers avoid significant financial losses caused by unregulated websites. Although misfortunes can still occur with licensed casinos, the commission ensures regular security and performance checks to address any issues promptly.
What Happened?
Two companies, Progress Play and Jumpman Gaming, had to make significant changes to their withdrawal process rules.
The primary issue was that players were unable to withdraw all their money at once. While there are typically withdrawal limits in casinos, that wasn’t the problem. The only option available was to withdraw the money in small portions, forcing players to stay online for a specific period.
Imagine losing your money simply because you didn’t have enough time to spend it on the website. It seems fraudulent, but the law allowed such requirements in the first place.
Additionally, if customers failed an identity check within a specific timeframe, their money was seized. As stated by the CMA, it makes no sense to confiscate people’s money just because they couldn’t provide certain information within an unreasonable timeframe.
The Solution
Recognizing their authority, the CMA and UKGC took action to rectify this issue. The commissions filed an enforcement action against both companies and highlighted the unfair obstacles in the withdrawal process.
As a result, both companies agreed to change the rules that caused problems for thousands of gamblers. The details and the extent of the financial losses suffered by individuals are not known. However, it is evident that both companies are under scrutiny from arguably the most powerful online gambling regulatory bodies globally.
Positive developments tend to escalate quickly once the first step is taken, and we hope the same will happen in this case. The CMA has stated that all companies under their supervision will undergo additional checks to eliminate any similar rules from their terms of service.
Jumpman Gaming operates numerous B2C slots and bingo websites, as well as other B2B sites. The public remains uncertain about the exact damage caused in the past regarding this matter, and it remains to be seen if the company will face any sanctions. Progress Play collaborates with industry giants such as NetEnt, Scientific Games, Microgaming, NextGen Gaming, Cryptologic, Blueprint Gaming, and Big Time Gaming. It is unclear how the software development and operating firms associated with them will react to this news, but it is certain that they do not want any negative reputation at this time.
Future Improvements
The goal is not only to identify and resolve problems like these but also to prevent as many as possible. Those with decision-making power and rule-setting authority are best equipped to achieve this, and here’s what they have to say about their future plans.
George Lusty, CMA’s Consumer Protection Senior Director, asserts that online gamblers should be able to withdraw their “earned” money whenever they desire. This news is significant because they expect other companies to follow the example set by Jumpman Gaming and Progress Play and eliminate unfair payment-related rules.
Paul Hope, an Executive Director at the UK Gambling Commission, supports the accomplishments of CMA’s research and investigation. He agrees with George Lusty’s belief that other companies will likely make changes themselves to avoid facing consequences. However, if these companies fail to do so, the commissions may adopt stricter measures.
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