UK Gambling Commission Cracks Down On Suspect Advertising
The United Kingdom’s Gambling Commission (UKGC) shows no sign of retreating from its role in protecting the psychological and emotional health of players who visit UK casinos online. In 2017, the Commission began cracking down on illegal, fraudulent, and misleading practices by some of the UK’s largest gambling outfits. The gambling company BGO was one of the first to fall under the scrutiny of the UKGC last year for its misleading advertising campaigns. As a result, a £300,000 fine was assessed. The Commission plans to continue to play the aggressive watchdog in 2018.
The UKGC, along with the Advertising Standards Authority (ASA), argues that many gambling operators are using targeted advertising to attract particularly vulnerable communities of gamblers. These include compulsive and addicted gamblers as well as minors. In addition, the two agencies are coordinating to crack down on fraud and money laundering through the loose regulations inside the gambling companies. These new policies already have forced some operators, like Ladbrokes, to reduce the number of affiliate companies with whom it partners to avoid penalties.
The two regulatory bodies are particularly interested in reducing or removing the kind of misleading advertising that impoverishes already vulnerable gamblers. Some of the advertising teaser phrases, like “Bet Now,” and “Risk Free,” both of which appeal to compulsive gambling behaviour, are now under heavy scrutiny. The Commission implemented new policies requiring companies to prominently display the risks and conditions of certain offers, instead of burying gambling terms and hidden fees/risks inside lengthy, dense, and confusing disclosure agreements.
Some companies in 2018 have already suffered the consequences of non-compliance. The company ElectraWorks was forced to pay £350,000 after an investigation revealed that their “free bonus” incentive was in fact misleading to players. The company 888 was also fined a massive £7.8 million after an inquiry discovered that over 7,000 self-excluded players were still permitted to place bets. Companies have an obligation to take reasonable steps to prevent self-excluded gamblers from playing. The company claimed the bets were made due to a technical failure, which did not prevent the fine from being assessed.
William Hill, another large gambling corporation, was fined £6.2 million after it was discovered that its services were being used for money laundering and fraud. An investigation revealed that William Hill profited as much as £1.2 million by using funds acquired illegally. This crackdown demonstrates another key agenda of the UKGC and ASA: the fight against illegal capital movement inside poorly regulated markets. Gambling operators will be scrutinized comprehensively in this regard to prevent illegal businesses from using the authorities to tidy up their ill-gotten gains.
Ultimately, betting companies must reconcile their profit-driven business with the health and well-being of its clients, the Commissions argue. Betting cannot be a source of income, nor a compulsion that leads to poor choices. Operators will need to adjust their marketing strategies, or else face the wrath –- and the financial consequences –- of the UKGC and ASA.
