CMA Warns Against Unfair Withdrawal Practices
The Competition and Markets Authority, or CMA, is a regulatory agency within the UK. Recently, the CMA has directly contacted certain UK casinos online regarding the practices each site has in place for withdrawals. The main issue is unfair terms and conditions that are applied when players try to withdraw funds from an online casino.
In the letters that were sent out, the CMA clearly expresses its intention to enforce actions against online gambling operators. These sites will be required to change the terms surrounding withdrawal options or potentially face fines. The action has been supported by the UK Gambling Commission, the chief regulatory agency for online gambling in the United Kingdom.
While there are numerous concerns, the CMA says that it is focusing primarily on the withdrawals limits set for players on a weekly or monthly basis. The agency further states that it is addressing limits on withdrawals that are too low to be considered reasonable.
Another area of concern is the time limit for identity verification. According to the CMA, certain online casino operators are not giving players enough time to verify their identity through the website. This short time frame can potentially lead to the loss of funds that the player has deposited or acquired. The CMA considers extremely short deadlines to possibly be “arbitrary” and an unfair practice.
In a similar fashion, a handful of online casinos are using what is known as dormancy terms. The practice allows the gaming site to confiscate the funds from the player if the player has been inactive at the online casino for a certain amount of time.
UK Casinos Facing Fines From UKGC
The UK Gambling Commission itself has been busy as of late. After a thorough investigation, the agency slapped online gambling house William Hill with a massive £6.2m penalty. According to the Gambling Commission, the actions of William Hill from 2014 to 2016 involved transactions that were in violation of social responsibility and anti-money laundering regulations that has previously been put in place. The penalty includes a £5 million fine and £1.2 million that was made in revenue off of the transactions.
Though the UK is a highly regulated market for online casinos, it is designed to protect players and keep standards as fair as possible. Operators of gaming sites in the UK are bound to face new changes as the Gambling Commission bares its teeth. In addition, the CMA is likely to follow suit and ensure the fairness of advertising and banking.