UK regulator offers advice to businesses leaving market
The UK gambling regulator said that while it is understandable that businesses may leave the local market, they need to have some standards in place.
UK.- The UK Gambling Commission (UKGC) has released key points for businesses that may be leaving the local market. The regulator said that they aim to maintain public confidence in the gambling industry and a fair and open market.
UKGC’s statement says that the regulator expects licence holders to conduct their business with integrity. They also explained that they should maintain adequate financial resources, and have due regard to the interests of consumers and treat them fairly.
“We are aware that, from time to time, gambling businesses leave the British market. This may be for a variety of reasons, ranging from insolvency to personal retirement. We are aware that businesses have been taking a variety of approaches to dealing with their consumers in these situations, and we want to make our expectations clear,” said the UKGC.
The advice to businesses
The advice applies to both online and retail operator, as well to individuals that hold personal management licences. “Even with an insolvent business becomes insolvent, we still may act against both the operating licensee and any relevant personal management licensees if there have been failings.” The regulator also said that it will consider a licensee’s conduct in future licence application they make. If there was fraud or illegal trading, they will refer that to the relevant enforcement agency.
The UKGC expects businesses to have a plan
The watchdog said that if a business is to leave the market, it should have plans in place and take steps to make sure that consumers are not at a disadvantage. The best outcome for consumers will depend on the specific circumstances. If a business is insolvent, then it cannot legally carry on trading.
On an ongoing basis, the UKGC expects businesses to be aware of their liabilities and check they can cover them. They should warn consumers placing long-term bets that they can’t secure their stakes and winnings in the event of insolvency. They must also give consumers information about the level of funds protection in place.
In case the business closes, the UKGC said that they should provide clear and concise information to consumers. Licensees should also 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. Moreover, it said that they should discharge all their liabilities to their consumers whenever possible.
“If a gambling business decides to close or exit the market, we cannot prevent them from doing so. We will not be arbitrating on any disputes that might arise between a licensee and its consumers. In some situations, the business’s alternative dispute resolution (ADR) provider may be able to help. Consumers can contact the ADR provider and it will tell them if it is able to adjudicate on their dispute. In all situations, consumers retain the right to pursue civil legal action through the courts if they are unhappy with the action taken by a gambling business,” said the UKGC.
