Ladbrokes and Hills facing action over bets promotion

PUNTERS were yesterday warned that the “dice are loaded” against customers taking advantage of sign-up promotions as it launched enforcement action against five online gambling firms including Ladbrokes and William Hill.

As a result of an investigation launched last October by the Competition and Markets Authority (CMA) into whether firms had been treating customers fairly, the body is also looking into whether operators are unfairly holding on to people’s money, as they invited those who have had difficulty withdrawing funds from online accounts to contact them by August 31.

The CMA claims sign-up promotions often come with terms and conditions that can be confusing, unclear and even unfair, meaning some customers must play hundreds of times before being allowed to withdraw money, denying them the opportunity to quit while they are ahead and walk away.

The body, which heard from more than 800 people, is also concerned that many customers, including those who have not signed up via a promotion, have found minimum withdrawal amounts far bigger than their original deposit, or too many hurdles in the way of a withdrawal.

"We know online gambling is always going to be risky, but firms must also play fair," said the CMA's senior director for consumer enforcement, Nisha Arora. "People should get the deal they’re expecting if they sign up to a promotion, and be able to walk away with their money when they want to.

"Sadly, we have heard this isn’t always the case. New customers are being enticed by tempting promotions only to find the dice are loaded against them. And players can find a whole host of hurdles in their way when they want to withdraw their money."

The CMA said it had "a range of powers at its disposal to bring any illegal activities to an end".

Ladbrokes confirmed they are in talks with the CMA, although their stablemate Coral and Gala brands are not involved.

Their statement said: "Ladbrokes can confirm that the Ladbrokes brand is in dialogue with the CMA regarding its investigation into the online betting and gaming sector.

"Ladbrokes has always sought to offer customers a competitive and rewarding experience through use of promotions and we are committed to working with the CMA and move swiftly to make any changes which may be necessary."

In a short statement William Hill said: "We can confirm that we have today received a communication from the CMA and that we will be liaising with them to ensure that any concerns are appropriately dealt with."

The identity of the other three firms involved has not emerged.

The investigation is being conducted with the help of the Gambling Commission, whose chief executive Sarah Harrison added: "Whilst the CMA takes enforcement action on how consumer legislation is followed, the gambling industry should be under no illusion that if they don’t comply with consumer law, we will see this as a breach of their operating licence, and take decisive action."

While operators are required to check customers' identities to fulfil social responsibility and anti-money laundering requirements there are concerns these are being used to prevent consumers from legitimately withdrawing funds.

Harrison added: "Those checks cannot be used as an excuse to unduly restrict legitimate customers from withdrawing their funds.

"If the CMA finds specific consumer protection failings in this area, it will add further cause for the commission to review how fairly operators are treating consumers."

Responding to the news, the Remote Gambling Association said in a statement: "The CMA has not been in contact with the RGA since it began its investigation last year and so it will obviously take us some time to digest and consider properly its announcement today.

"However, where failings are identified companies individually will rectify them. If there are generic lessons to be learned then, as ever, we will work with the Gambling Commission to bring those to the attention of the wider industry with a view to raising standards across the board."

The next update on the investigation is due by December.