Major UK Betting Companies Lack Appropriate User Protections

July 12, 2022
15,413 Views
Clinton Jacob Machoka

A recent audit by the Gambling Policy and Research Unit of the Behavioral Insights Team (BIT) indicated that several prominent UK betting companies do not provide enough client protection.

The study's findings come from an audit the unit conducted on popular operators' websites, including Flutter, 888, and Entain. Independent observers conducted the assessment and examined all phases of operations, including account establishment and closure.


Several Defects

Investigators opened a new player account with the most popular UK gambling companies and discovered that many lacked the necessary safeguards for users. The behavioral audits focused on numerous aspects, such as data collection, framework construction, and analysis. The audits started in December 2021 and will go through until June 2022.

The significant findings were that providers placed their customers at a greater risk of damage by failing to safeguard them from the adverse effects of gambling. The audit identified several problematic areas, such as the registration procedure.

As per the audit, it takes longer to terminate an account than to register one, and users got welcome emails before the company completed the signup process. Customers were also obliged to acquire a minimum balance before making a withdrawal.


Luring Gamblers

Some operators have minimum fast deposit sums set at more significant totals than default ones. Innately, this would entice gamers to deposit more funds than needed.

Age verification was a concern during registration; several sites allowed access to some betting products without disclosing their age.

Losses were also a problem, and operators provided inaccurate data about them. One scenario depicted a gambler who wagered £0.20 ($0.24) for each wager. The player lost £0.10 ($0.12) but received a notification that they had won £0.10. Furthermore, websites used countdowns and flashing messages to push gamers to bet faster.

According to BIT CEO Dr. David Halpern, the operators may make adjustments to strengthen their client protection protocols, but he doesn't believe this is their most significant concern.

"Whether by design or market development, the overall message is loud and clear: gambling sites make it extremely simple to join up, play and keep betting, but it is noticeably more difficult for customers to locate the tools to establish appropriate limits, get their money out, or just quit," Halpern noted.

The gaming companies in the United Kingdom mentioned in the audit have not yet responded.


Harsher Penalties by Commission

The audit comes at a time when gaming regulators are scrutinizing operators. In May 2022, the chairman of the UK Gambling Commission (UKGC) announced measures to take stricter action against operators that break license requirements.

Marcus Boyle was appointed Chairman of the UKGC in September 2021, and in his first public statement, he noted that he would try to improve the regulatory sector. Boyle intends to punish operators that consistently violate regulations.

Despite the significant penalties imposed on licensees, the current strategy does not seem to be effective.

Boyle suggested cumulative discipline packages with higher financial fines and penalties deducted as a proportion of earnings. The possibility of lengthy license suspensions is also available.

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