UKGC mandates fair withdrawals policy

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UKGC mandates fair withdrawals policy

Concerns about delays with customer withdrawals, which are contained in the Commission’s Business Plan 2023-2024 and in its Budget, were addressed by Andrew Rhodes, CEO of the Gambling Commission of the UK.

On an annual basis, there are approximately 2,000 complaints received at the UKGC’s contact center each year about these delays. A compliance review had seen the Commission direct operators to change their terms and conditions, making it necessary for them to identify customers before they are allowed to make deposits instead of waiting until they want to withdraw money.

All online operators feel the pain of withdrawal delays, yet the aggregate complaints versus the total withdrawals are not many. The Alternative Dispute Resolution (ADR) scheme, by singling out this concern, has categorically underlined just how serious withdrawal delays are as an issue.

Online licensees received a warning from the commission that introducing friction during withdrawals rather than deposits or putting the commercial interests of the operator above the needs of the customer would be considered a breach of compliance.

The commission stated:

“Operators often do not provide their customers with any reason as to why they are requesting additional information from them. They sometimes advise customers that information is being requested “for regulatory purposes.”

Operators are not allowed to avoid or withhold money in order to prevent customers. Instead, they must prepare procedures for AML to prevent unfair practices that would bar customers from withdrawing money. The fairness of withdrawal policies that comply with the law should be ensured on a daily basis by those in control.

CEO of the UK’s Gambling Commission, Rhodes noted:

“Our Corporate Strategy for 2024 to 2027 highlights the most important work we intend to deliver over the next three years and outlines that we will be investing further resources into identifying risks and opportunities relating to the fair and open licensing objective and to the regulatory outcomes that link to this objective.”

The Commission will supervise compliance and help the industry understand consumers’ interests. On a regular basis, providers are supposed to review their terms, conditions, and withdrawal policies to ensure fairness and compliance.

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