gambling industry

Two Leading Online Bingo Sites Ordered to Scrap Unfair Withdrawal Limits

Posted by martha on in Bingo, Blog, News / 0 Comment

The United Kingdom Competition and Markets Authority (CMA) has named Jumpman Gaming and Progress Play as the leading bingo sites in the country in restricting players from withdrawing their winnings. They have been accused of erecting hurdles in the form of policies with an aim of causing players to continue gambling.

The move by CMA to name and shame Progress Play and Jumpman Gaming followed the release of an investigative report that was published towards the end of August this year. For the past two years, CMA has been undertaking an investigation on bingo firms’ release of players’ winnings.

Online bingo players in the UK have for many years in the recent past complained about restrictions that bingo sites imposed on withdrawals. The players are left in a state where they cannot access their money despite having worn it because of the unfair practices by bingo sites. Their complaints were taken up by CMA where it sought to understand the issue through an in-depth investigation.

The investigation found that some of the bingo sites in the UK market operate dubious policies which are a violation of customer rights. The authority cited a case where bingo sites state in their terms and conditions that players’ balances will be seized if their accounts remain inactive for a given period of time. CMA viewed this detrimental policy as a way of compelling players to gamble more. CMA also found that in some of the cases, winnings are confiscated if bingo players do not show proof of their identity within a given period.

The report also found that bingo sites were restricting the amount that a player can withdrawal at a time. Worse still, other bingo sites were found to be using money laundering controls in a selective manner with a view of delaying withdraws from the winning accounts.

Commenting on the investigative report, George Lusty, senior director at CMA said that individuals who opt to bet in the online bingo sites should be allowed to walk away with their winnings anytime that they desire. Progress Play operates on a business to customer and business to business basis. Jumpman Gaming provides an underpinning of other sites through a business to business engagement. It also operates on a business to customer basis by offering slot sites and online bingo.

The UK Gambling Commission has taken up the issues mentioned in the report and emphasized on the need for operators to offer fair policies to players. It warned that bingo operators engaging in the dubious practices would face strict actions.

Commenting on the issue, Paul Hope, the executive director of UKGC said, “Gambling firms should not be placing unreasonable restrictions on when and how customers can take money out of their accounts.” He urged operators to align their policies with the findings in the CMA’s report.

After their naming and shaming, Jumpman Gaming and Progress Play agreed to scrap the restrictions they had been applying on customer withdrawals. Speaking on the issue, George Lusty confirmed that Progress Play had agreed to do away with its ID check response times and warned other bingo operators that action will be taken against them if they do not follow suit.

CMA and UKGC have been working together to intensify they oversight in the gambling sector. Their efforts have seen UKGC impose fines to operators for violations of betting laws by tenfold in the last financial year 2017/2018 compared to the previous years.

UKGC has warned that unless bingo sites observe standards, fines and penalties will “escalate relentlessly.”

 

Rank Group’s Mecca Bingo Drop by 22 percent in Revenue as the Industry Become Stricter

Posted by steve_k on in Bingo, Blog, News / 0 Comment

Rank Group, a leading gambling company in the United Kingdom, has reported a 41% decline in its profits for the financial year ended June 2018. The firm blamed stricter checks and a drop in bingo and casino customers for the drop. It has, however, vowed to put in place a turnaround plan that will see it increase its profits in the coming years.

The group registered a pre-tax drop of 41.4% to £46.7 million for the year that ended on 30th June 2018. At the same time, its revenue dropped by 2.3% to £691 million for the period.

While releasing the report, Rank Group described the previous financial year as a “challenging year.” The group blamed “a disappointing performance” that is registered in its Grosvenor Casinos business which experienced a 6.1% drop in revenues to £373 million in the accounting period.

According to the group, several factors caused the poor performance. First, it blamed the new guidelines that were published by the United Kingdom Gambling Commission in September last year. The “enhanced due diligence” requirements for the customers require that more stringent checks are done on punters. As a result, the number of casino goers has declined.

Business was also stalled by the adverse weather conditions that were experienced at the start of the year. Many casino and bingo lovers were forced to stay at home due to the weather and this in return led to a decrease in revenue for the group.

Its Mecca Bingo division registered a 7.9% decline in customer visits over the year. As a result, the division’s revenue dropped by 22.6% to £208.1 million. The operating profits for Mecca declined by 4.3%. However, Rank Group reported that the fall was smaller than expected and attributed the good performance to improved cost controls.

The group also blamed lower win margins for high rollers as a factor reducing traffic to its business. Alongside the poor operating environment, the firm made impairment charges of £26.9 million. The company termed the charges as “exceptional” and included the closure of a casino in Bradford and under performance of five other casinos.

Following the announcement, the group’s shares fell by 6.1% in the London stock exchange. Ed Monk, who is an associate director at Fidelity Personal Investing share dealing platform said that the company’s profit warning in early April coupled with the consistent rise in dividend has eased the situation.

However, the group’s digital business grew by 9% to £122.5 million. The results are indicative that punters were increasingly opting for online betting. Though there was growth in the digital platform, the company reported that there was a slowdown in the second half of the financial year. The slowdown was attributed to the new customer requirements.

John O’Reilly, an industry veteran, and the group’s chief executive said that the company is focusing on a turnaround plan after its decline in profits. “We are now moving quickly to identify key priorities which will begin to realize the significant potential that I have seen first-hand since joining the group in early May.”

He outlined the steps the group was taking by saying “We are taking steps to increase our focus on the customer, to accelerate growth in the digital business, to drive cost efficiencies across the business and to strengthen our organizational capabilities.”

 

UK Gambling Commission Slaps Stride Gaming with Hefty Fines

Posted by martha on in Bingo, Blog, News / 1 Comment

The United Kingdom Gambling Commission has slapped the Stride Online gaming operator with a hefty penalty. It has done this by issuing a notice to that effect. The notice is still pending and has not yet come to effect for the time being.

Stride GamingBefore arriving at this crucial decision, the gambling commission carried out an extensive review of the activities of the said gaming operator. It mainly focused on how the gaming operator carried out its activities.

It alleges that the said operator has not been diligent and faithful in all its dealings. This is why, in the opinion of the gambling commission, the operator deserved a hefty financial fine. This gaming operator has a vast interest in the field of online gaming and gambling.

These include but are certainly not limited to Regal Wins Casino, Magical Vegas, Spin and Win, Kitty Bingo, and Jack Casino. On its part, the operator has advised its market base and subsidiaries that it is presently considering the various approaches to take in response to the latest developments.

Some of the steps the operator is currently contemplating are lodging a formal complaint to the gambling operator as regards the proposed financial penalty. It also considers appealing the decision of the gambling operator and the accompanying penalties in a competent court of law. It even considers asking that the size of the penalty be reduced.

The markets have responded adversely to these developments. Stride gaming has lost a whopping one-third of its market value. This has mainly been occasioned by the loss of interest that most stakeholders have developed in response to these allegations.

Its shares fell by around 33% immediately the announcements. The slide slowed down to around 31.75% later up to the close of the business day. This slump in market value has no doubt adversely affected the daily revenue as well as the short-term financial standing of the firm.

The wider market was not spared either. Indeed, these shocking revelations have also sent the overall gaming market tumbling down. The London’s Alternative Investments market all-share index slumped by around 1.5% in the same week that the announcement was made by the gambling commission. The FTSE 100-share index was not adversely affected though. This is because it registered a paltry 1% slump in value.

This slump in the overall gaming share is understandable. Stride is the third largest online bingo operator in the United Kingdom. It commands a 12% market share. This loss of confidence, therefore, means a huge impact on the gaming market as a whole.

Given the significance of gaming to the British society, it waits to be seen the repercussions and long-term consequences of these developments. In particular, it is interesting to see the courses of actions that the various stakeholders are going to employ to counter these adverse developments.

These developments notwithstanding, the UK gambling and online gaming industry are still robust and reliable. The developments will hardly have any adverse effects or impacts on the resolve of the British society in enjoying their favorite pastimes.

 

 

Impending Brexit and Its Likely Impact on Gibraltar Gambling Industry

Posted by martha on in Bingo, Blog, News / 1 Comment

The UK’s imminent departure from the European Union, popularly called Brexit, is expected to severely impact the gambling industry in Gibraltar. This is because most of the safety measures, rules, and regulations that govern trade in the economic zone shall not apply anymore.

The recent dual resignations of two British top ministers i.e. David Davis and Boris Johnson have further exacerbated the situation. Their resignations have shaken the government to the core and created a wave of uncertainty as regards the way forward. Indeed many waits with bated breath to see how the events shall unfold.

As things stand, the gambling firms that operate in Gibraltar are governed by the European Union rules of trade. They are also entitled to the same privileges as their counterparts in the rest of the trading block. Some of the top benefits these firms accrue are unhindered access to the huge market, freedom to move their staff, operations, and bases throughout the entire trading bloc, and protection from adverse competition from international sources.

If and when the Brexit deal is eventually finalized, all firms that set base in Gibraltar are expected to be adversely affected. They shall lose all these privileges. This shall see their stocks and revenue take a nosedive.

In response to these issues, Gibraltar has instituted a host of countermeasures. It has significantly reduced the corporate tax on gambling revenue by a whopping 0.85% (from 1% to a paltry 0.15%). It has also advised gambling businesses that have a base within its territory to identify contingency measures which may aid them to cope with the imminent change of the trade regime.

At the same time, the nation has also raised the license fees in a bit to cater for revenue shortfalls. The license fees are one-time expenses and are such not expected to impact adversely the desirability of Gibraltar as a favorite gambling destination or base.

The license fees of the business-to-consumer gambling companies shall cost $132,000 (£100,000) while those of the business-to-business gambling companies shall cost $112,000 (£85,000) under the new licensing regime.

Some top gambling firms have also decided to take matters into their own hands. They have decided to draft their own contingency plans to counter these issues. The most notable examples of these firms are the Bet365 and 888 Holdings.

These two firms have resolved to move some of their operations to Ireland and Malta. This is in a bid to circumvent the obstacles that are expected to be placed on the path of the companies that set up base in Gibraltar. More gambling firms are expected to follow suit or at least modify their rules of engagements.

Other than the aforementioned issues, the tax schedule is also expected to be severely impacted. This is because the EU requires all firms to be based within its borders for any decision touching on the tax to be made. This will complicate matters further as no firm as of yet has issued an intention to fully relocate its operations.

The stakeholders in the gambling industry are in a flurry of activities aimed at rescuing the gambling business. Most propose that the Brexit deal also stipulate the manner in which gambling shall be treated as a trade. This stems from the fact that service industries of which gambling is a part, have been largely excluded from the ongoing Brexit talks.

A number of stakeholders have contemplated looking to the World Trade Organization to offer the needed way forward. Their argument is hinged on the premise that both the UK and the EU are members of the global trade organization. They are therefore bound by the same rules notwithstanding the fact that they may have parted ways.

Gibraltar’s gambling industry is one of the most vibrant and lucrative. It will be interesting to see how events unfold especially with regards to the latest developments.

 

The UK Gambling Commission set to make Gambling to be Safer and Fairer

Posted by steve_k on in Bingo, Blog, News / 1 Comment

The UK gambling commission intends to find measures that will make gambling safer and fairer. To make this possible, the organization has come up with a report called, “raising standards for consumers.”

The report covers self-exclusion, customer interaction, unfair terms, anti-money laundering and illegal gambling activities. Operators are required to pay close attention to the lessons that are set in the report. They need to find ways to keep their consumers safer and to make the gambling activities fairer.

According to Neil McArthur, the regulator’s boss not nearly enough has been done so far. “There is also more that can be done to ensure that customers are treated right and that they are kept safe while they gamble. I want to make changes that will start with the companies at the top.”

“We need to make sure that we use the power we have to drive a culture that requires operators to comply with the right rules from the beginning and it needs to protect consumers and drive profits,” he continued.

The operators 32Red Company was the most recently penalized for not complying with these regulations. They had to pay $2.62 million because they were found guilty of money laundering and not offering their customers adequate protection from gambling-related problems. William Hill was also fined in February £6.2 million for the same reasons.

The second largest punishment dished out by the commission was £ 7.8 million to 888 because they failed to protect their customers and their money.

Actions such as this one indicate the steps that the UK government and other regulatory bodies, advisory group and charities have taken to point out and find solutions to the problems in the industry. Mainly, these bodies are dedicated to making sure that underage people do not start gambling.

Recently the UK advertising standards authority recently enforced child protection so that the gambling sites would not be accessible to young children. For instance, the coral gambling adverts that include leprechaun were banned. The animated advertisements were found to be appealing to the under 18 children. Online slot adverts were also banned because they may pop up while an underage person is on the internet and they may be tempted to sign up.

The gambling industry in the UK continues to grow. As of September 2017, the industry has 106,366 employees. It also made £13.9 billion between April 2016 and March 2017. The statistics have also shown that up to 95% of all gamblers often gamble at home.

Companies need to put measures that allow them to notice unusual gambling patterns from their customers. The unusual patterns may be due to money laundering or people facing financial issues as a result of feeding their gambling problems for a long time.

Firms are required to do full background checks of their customers. These checks should show how the customers are getting their money and whether they can afford to pay their bills and gamble the amounts they put forward.

Operators have to put the welfare of their customers first and have an overall financial view of their customer’s right from the beginning. The companies need to check the deposits being put in carefully. If they question the amounts deposited, they need to limit the players or stop them from playing altogether.

The commission works with the advertising standards authority to ensure that operators who defy the rules put in place are fined for targeting vulnerable customers. With the right treatment, customers will not lose their financial stability.