CMA calls for wholesale changes to bonusing
Consumer watchdog and Gambling Commission warn operators of grave consequences unless they start putting the consumer first
The Competition and Markets Authority (CMA) has warned operators that some bonusing practices are “inherently unfair” and need to change, as the body continues its ongoing investigation of the online gambling industry.
Speaking yesterday at the Gambling Commission’s annual Raising Standards conference in Birmingham, George Lusty, who is leading the CMA’s investigation, outlined several key areas where he expected to see improvements.
Chief among these was the removal of restrictions on withdrawing deposit winnings.
“A common feature of deposit match and bonus promotions is that consumers are prevented from being able to access any winnings obtained using their deposit funds unless and until the specified wagering requirements of the promotion are met,” Lusty said.
He said these restrictions were “substantively unfair” and operators need to stop offering gaming promotions that include a restriction on the withdrawal of deposit winnings.
Several firms have moved down this road since the CMA investigation first started, with bgo and PlayOJO among firms that have made their bonusing more customer friendly, but complex Ts&Cs are still commonplace across the industry.
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Lusty also took aim at sportsbook offers where shrewder punters were prevented from completing the terms of a sign-up offer because their accounts was restricted.
“The legal principles underlying our concerns in this area are particularly straightforward, as they purport to give operators a one-sided right to change the terms of a deal after the consumer has already acted on a particular understanding of that deal and its value,” Lusty noted.
Lusty said operators should honour such promotions to any and all consumers.
The CMA exec concluded his speech, which can be found in full here, saying: “We view today as an important opportunity to highlight these concerns, so that all operators can start the process of reviewing and, where necessary, revising their terms and practices.
Operators who do not comply with the CMA’s demands could face court action, or be dealt with by the Gambling Commission.
George Lusty, CMA Project Director
At the same conference, Commission CEO Sarah Harrison also reiterated her position that operators must do more to protect consumers.
“The bar has been set too low by operators in relation to treating customers fairly” she said.
“The customer experience has not been what it should be, and change is now coming. Fairness is key, transparency is essential, and unreasonable behaviour will not be accepted, by us, by our partner organisations and certainly not by the consumer.”
Harrison went on to warn that laggards “will find themselves in an uncomfortable position, with their future in this industry increasingly in peril”.