UK online gambling licensees face “enforcement action” for violating consumer law

The UK’s competition watchdog has launched enforcement action against a number of online gambling companies over misleading sign-up promotions.

Last October, the Competition and Markets Authority (CMA) announced it was investigating UK-licensed online operators for “potential breaches of consumer law, including misleading promotions and unfair terms, being used by firms to block players’ payouts.”

On Friday, the CMA announced that it was taking enforcement action after consultations with around 800 punters had identified “a number of operators engaging in practices likely to be breaking consumer law,” including excessive rollover requirements before winnings can be withdrawn. The CMA says it has “a range of powers at its disposal to bring any illegal activities to an end.”

The CMA didn’t identify the five targeted companies by name and clarified that it had “not reached a final view” on whether the operators had breached consumer law and would “listen to operators’ responses to its concerns.” The ultimate decision on whether the operators violated consumer law would have to be determined by a UK court. The CMA has promised an update on the file in December.