UKGC Suspends LEBOM’s License
The Gambling Commission has suspended the license of football prediction app LEBOM, after it failed to offer customers access to GAMSTOP. The platform can longer trade with app users, until the gambling watchdog is satisfied that it has fully integrated the self-exclusion scheme.
LEBOM’s customers can still access their accounts but can only withdraw funds. ©Andrea Piacquadio/Pexels
Self-Exclusion Scheme
LEBOM is the latest gambling business to fall foul of regulations in the UK. The Gambling Commission has suspended LEBOM’s license with immediate effect, after it found that it had failed to offer consumers access to GAMSTOP. LEBOM, which trades through an app, is not permitted to trade until the watchdog is assured that it has fully integrated GAMSTOP.
Issuing a statement on the case, the regulator added that it has launched a review into the business’s license under section 116 of the Gambling Act 2005. Over the course of the suspension, LEBOM is expected to focus on treating customers fairly and must keep them fully informed of any developments that may affect them.
While LEBOM is barred from trading, the suspension does not stop the operator from allowing customers access to their accounts. Users of the app can continue to withdraw funds and can contact LEBOM via the app.
Speaking on behalf of the Commission, Executive Director of Operations Kay Roberts made it clear that the regulator expects better from gambling firms. Operators are encouraged to make sure that they have clear signposting in place to safer gambling services and are compliant in offering GAMSTOP to all customers. Roberts stated:
“GAMSTOP provides a crucial service for people who feel they are suffering gambling harm. It is simply unacceptable for any online operator to fail to integrate with the scheme.”
GAMSTOP is a self-exclusion scheme that enables those who think that they may have a problem to stop gambling. It has been mandatory for all online gambling operators in the UK to take part in the safer gambling scheme since 2020. Gambling businesses must refuse to offer their services to customers that have registered with GAMSTOP.
Regulator Cracks Down
The suspension of LEBOM’s license is the latest in a spate of regulatory actions carried out by the Commission this year. Most of the gambling watchdog’s other actions have consisted of fines and licensing restrictions. Last month, the Commission fined GGPoker UK £672,000 and issued the platform with an official warning.
An investigation conducted by the regulator uncovered serious social responsibility and anti-money laundering failures. Social responsibility failures included failing to identify and interact with customers that may have been at risk of experiencing gambling harms.
The online poker platform also failed to take all reasonable steps to ensure that marketing materials were not sent to customers that had self-excluded. This resulted in promotional emails being sent to 125 customers that had opted out from its service.
Amongst its anti-money laundering shortcomings were inadequate risk assessments and failure to ensure that appropriate policies, procedures and controls were put in place to prevent money laundering and terrorist financing.
In August, the regulator handed out its biggest penalty to date, to international operator Entain. The operator, which runs popular brands including Ladbrokes, Coral and PartyPoker, was made to pay a staggering £17 million over its social responsibility and anti-money laundering failures. The penalty eclipsed the previous record set in 2020, when Caesars Entertainment was order to pay £13 million.
The scale of Entain’s fine reflected the fact that this was the second time that it had fallen foul of Gambling Commission rules designed to make gambling safer and crime free. £14 million of the fine was to be paid by Entain’s online division, which includes thirteen websites. The remaining £3 million was to be paid by the operator’s retail division, which is responsible for over 2,700 high street sportsbooks.
The regulator has expressed that it is growing increasingly frustrated with encountering the same failures time and time again at operators. Speaking earlier this year, CEO of the Commission Andrew Rhodes made it clear that the organization would no longer tolerate repeat offenders. However, some critics say that the fines dished out by the regulator are still not an adequate deterrent for gambling firms.
GAMSTOP Launches Uni Tour
Self-exclusion scheme GAMSTOP has partnered with the Young Gamers and Gamblers Education Trust and mobile health app RecoverMe to launch a university tour to support students impacted by gambling. The Gambling Support University Tour will travel to campuses around the UK to speak to students and staff about gambling harms and the support that is available.
Trained experts will be on hand to speak about their own experiences with problem gambling. YGAM has offered to provide harm prevention training to university staff, student union officers and safeguarding leads, free of charge. The charity will also promote its own Student Hub website, which highlights information, advice and guidance on gambling harms.
A number of higher education institutions and colleges have already been visited, including campuses at Worcester, Northumbria, Central Lancashire, Bournemouth, Lincoln, Sheffield and Stoke-on-Trent. Research published by GAMSTOP and YGAM earlier this year showed that 80% of a sample of 2,000 students had gambled. Of these, 41% reported that gambling had negatively impacted their time at university.
35% of those asked said that they had gambled with money from their student loan, overdraft, money borrowed from friends or payday loans. Mean gambling spend for students was recorded at £31.52 per week, while 18% said that they had spent more than £50 a week on gambling. 38% said they gambled at least once week, and 63% at least once a month.
Fiona Palmer, Chief Executive of GAMSTOP was proud to launch the tour, describing it as an important initiative for all taking part. Palmer added that gambling harms are rarely addressed on campus, so it is hugely important that students are made aware of self-exclusion tools and further help that is available.
