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Delays in withdrawing funds are the top customer complaint reported to the UK’s Gambling Commission, and it is unacceptable for operators to “introduce friction” at the time of withdrawal rather than at deposit, its chief executive has said.
The commission’s Contact Centre typically gets about 2,000 complaints a year about delays to fund withdrawals, according to CEO Andrew Rhodes, writing in a July 18 blog post.
But the commission’s interventions seeking amendments in terms and conditions contributed to the fact that operators that drew the most complaints in previous years, drew significantly fewer in 2023, he said.
Licensees need to obtain and verify ID information from a player before the player is permitted to gamble, not at the time of a request to withdraw funds, Rhodes said.
Before deposit, the licensee should tell the player what ID or other documents they will need to provide, under what circumstances they will be requested, and how they should be supplied.
Complaints about delays in withdrawals occurred in operators of all sizes, according to the commission.
Delays in withdrawing funds are a top complaint by many gamblers, not just in the UK.
This week, professional gamblers Gadoon “Spanky” Kyrollos and Billy Walters announced the formation of a Nevada-based non-profit group, American Bettors’ Voice, with some of its goals including reducing withdrawal friction and “meaningful and intelligible” terms and conditions.
When a player asks to withdraw funds from their account, operators must not request additional information as a condition of withdrawal, “if the licensee could have reasonably requested that information earlier”, Rhodes said.
They can request more information at withdrawal if they have a legal obligation to do so, the commission said.
An exception to transparency guidelines would be in cases where the licensee has learned of, or suspects, money laundering, where a customer should not be tipped off and investigations should not be prejudiced, the regulator said.
But otherwise, a player should be told why a withdrawal is being delayed and should get a full explanation if a withdrawal request is refused, according to the commission.
“We want transparency for consumers on restrictions on play or withdrawals, which means operators should make proper efforts to explain to customers what the checks and restrictions are,” Rhodes said.
Operators should clearly explain why they might be requesting further information from a customer, “for regulatory purposes” is insufficient information, according to the regulator.
“Operators should not mislead customers,” Rhodes said. “Where we find evidence that an operator has deliberately misled a customer in its communications with them, we will consider the need for regulatory action.”
Licensees should monitor player accounts, and request source of funds or other information where necessary, but they “should not continue to accept deposits indefinitely and then seek to rely on their AML procedures to frustrate a withdrawal request”, the commission said.
If they suspect, or become aware of, money laundering or terrorist financing, they must submit a suspicious activity report (SAR) and seek a defence against money laundering or terrorist financing ruling before moving or returning player funds, the regulator wrote.
Operators may want to freeze an account, or end a customer relationship, for safer gambling purposes, the regulator said.
They should be transparent about reasons for requesting information, but “we do not consider that it would be fair, transparent or necessary to delay or prevent withdrawals purely for customer interaction purposes”, the commission wrote.
