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UK Government to Claim Online Gaming Winnings
Written by Mark Bennett   
Tuesday, 05 April 2011 13:33

An enquiry into UK resident’s online betting accounts has been conducted by the government and it reported that there is possibly millions of pounds sat lying dormant in some accounts as online operators have made it difficult for players to make withdrawals, which could have significant effects for players. The government is looking into ways of claiming these funds to put to sporting good causes. Industry experts expect gambling operators to rethink their own terms and conditions in light of the recommendations. In fact in time gaming companies may be forced to change withdrawal terms and conditions in favour of the customer.

MP Don Foster has completed the enquiry and sent the results this week to John Penrose, Minister for Tourism and Heritage.

Foster was entrusted with the task in July 2010 and the findings will now be reviewed by the Penrose.

"I'll be looking at this report in detail, particularly in light of our work on the regulatory future of remote gambling to see whether we are able to make sure sporting good causes can benefit in the future," he added.

Foster was required to investigate at how cash in abandoned betting accounts and other unclaimed winnings might be used to benefit good causes. With online gambling companies including, online bingo, poker, casinos and sports betting making it difficult to withdraw funds with requirements such as a minimum withdrawal and only accepting withdrawal requests at certain times some players ‘simply write the accounts off’. In addition to tempting players to stay at their online gaming sites and spend more in the future it also has other benefits for the operators in the fact that they receive any interest on monies held in accounts.

"I'd like to thank Don for all his hard work in putting this report together and for everyone in the industry who has contributed with their views," said Penrose.

"The UK government is currently considering its response to a consultation on the Regulatory Future of Remote Gambling in the UK with a view to making an announcement in due course. Any decision on dormant betting accounts and the other issues raised in Foster's report will be made after this," he added.

The recommendations received are believed to look at how the government class a betting account as "dormant" and clarification on any legal ramifications surrounding the use of the money. In future rather than benefitting from dormant accounts online operators could see costs associated with these. The onuses will more than likely be placed on them to contact players on multiple occasions in different formats to ensure that due diligence has been carried out. For example where a player leaves £5 in an account because they do not meet the necessary withdrawal constraints the online operators may have to send several letters out and have a department to deal with this. Just sending an email to a customer is unlikely to be classed as reasonable. This is likely to cost more than the original amount and in the end they would have to give the government the £5 anyhow.

Customers are also likely to argue where they have been unable to withdraw funds due to limits that it is unfair if the government is able to claim these funds. The government having reclaimed dormant funds is not going to want to pick up the bill associated with such reclaims and online companies may have to review their terms and conditions even if they argue that it is not economically viable to allow customers to withdraw smaller amounts.

Bingosupermarket has always been in favour of transparency and fairer terms and conditions for online bingo players and can only see this as a postive step forward for players overall.

 

 

 

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