Regulation round-up 25 October 2016
The biggest regulatory news from the egaming industry in the last seven days (19 October to 25 October 2016)
Online gambling companies to be probed over “unfair” practices
Gambling “shouldn’t be a con” says CMA as it teams up with Gambling Commission to root out bad practices
The online gambling industry is to be investigated by the UK’s competition watchdog over claims operators have breached consumer law through the use of “unfair” terms and “misleading” practices.
The Competition & Markets Authority (CMA) last week announced it was working with the Gambling Commission to assess whether online gambling firms were unfairly cancelling bets, altering odds after bets had been accepted, and offering misleading sign-up promotions.
There have also been suggestions firms have been using money laundering checks as a way to make it difficult for winning punters to withdraw their cash.
Operators will be required to give evidence and could face enforcement action from the CMA if found to have breached laws related to both the Consumer Protection from Unfair Trading Regulations 2008 and Part 2 of the Consumer Rights Act 2015.
No widespread failings in bookies’ T&Cs, says RGA
The UK’s online gambling sector is not guilty of using complex terms and conditions to mislead consumers, according to Remote Gambling Association chief executive Clive Hawkswood.
Speaking in response to news that the Competition and Markets Authority launched an investigation into what it described as potentially “unfair” and “misleading” trading practices, Hawkswood said there was no evidence to suggest that was the case.
“There is no reason to believe that there are widespread failings,” Hawkswood, whose firm represents the likes of bet365, William Hill and Sky Bet, said.
Seven days in regulation:
William Hill and Tipico back new German online casino lobby
William Hill and Tipico are among eight founding members of a new trade group set up to push for online casino regulation in Germany.
Deutsche Online Casinoverband (DOCV), which was launched at EiG, also counts Mr Green, bet-at-home and OnlineCasino Germany among its original members.
“The DOCV was founded with the goal of working together with its member companies to promote a future-oriented regulation of online casino offerings in Germany,” the group said in a statement.
Coral, Titanbet and bgo hit with ad bans
Coral, Titanbet and bgo have been hit with advertising bans from the Advertising Standards Agency (ASA) following public complaints about their ads.
All three companies were told ads run over the summer must not be broadcast again, while a LeoVegas advert also received a complaint which the ASA did not uphold.
The Coral dispute centred over a newspaper ad it ran in June which read: “ENGLAND TO BEAT RUSSIA WAS 10/11 NOW 50/1. WINNINGS PAID IN CASH”.
The small print stated: “If your selection wins, you will be paid in cash based on the normal price on site and will have your account topped up to reflect the enhanced price in free bets.”
Betway joins British racing’s ABP ranks
Betway has signed a three-year deal with British horseracing to become an Authorised Betting Partner (ABP).
The partnership will see the bookmaker make a voluntary contribution of 7.5% of racing profits in exchange for a number of promotional benefits and commercial arrangements with British racecourses.
Betway currently sponsors a number of major races including the Betway Queen Mother Champion Chase at the Cheltenham Festival.
That deal is set to expire after the 2017 renewal, with Betway unable to continue the sponsorship without ABP status.
US Congress to introduce federal sports betting legislation
US Congressman Frank Pallone has announced plans to introduce new legislation that could regulate “all types of gambling”, including sports betting, DFS and online gaming.
Pallone, the ranking Democrat in the House Energy and Commerce Committee, said he wanted a “wholescale review” of the “patchwork” federal laws affecting gambling, including the Wire Act, PASPA and UIGEA.
In a statement to ESPN, Pallone said: “The laws need a wholesale review to see how they can actually work together and create a fairer playing field for all types of gambling, both online and offline, including sports betting and daily fantasy sports.