In November 2022, the UKGC suspended the peer to peer betting company, Lebom! Although this betting firm is not famous and does not own many brands, this news came as a shock to the industry.
The UKGC suspended the company's licence after failure to integrate GAMSTOP which has been compulsory for all gambling companies to participate in since 2020. In addition to the licence suspension, the UKGC launched an inclusive review of the company's compliance with the terms of the licence in accordance with Section 116 of the Gambling Act 2005.
On the issue, UKGC Chief Operating Officer Kay Roberts said: “One in four gamblers in the UK suffer from problem gambling and this is the biggest problem in the industry. GamStop provides an important service to vulnerable people. It is therefore unacceptable for any gambling site to fail to integrate with the system as this defeats the purpose of it.”
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Table of contents
What Is Lebom Ltd?
Lebom is a peer to peer betting company that started in 2019.
Shortly before the UKGC decision, the company had succeeded in raising £350,000 in crowdfunding to grow its business. So, the suspension of its licence represents a major setback for them. However, the company acted quickly and wisely.
Just five days after the UKGC's decision, Lebom issued a statement expressing regret for failing to adopt GamStop and that it had already integrated it and will abide by all UKGC’s decisions.
Why Does UKGC Care So Much About GamStop?
GamStop originated as a voluntary initiative. However, the increasing number of gambling addicted in Britain has prompted UKGC to take tougher measures to help vulnerable groups.
Therefore, in 2020, the UKGC declared GamStop as the official self exclusion scheme in UK casino. This means that all licenced sites must adopt it to keep their licences active.
In general, the UKGC has proven over the past years that it never fails to crack down on irresponsible casinos which breach licensing rules.
During August, UKGC fined Entain Group a whopping $20.60 million for failing to enforce social responsibility rules.
In September 2022, the UKGC imposed a huge fine of $3.07 million on Betfred for lax KYC procedures.
Another company that has been fined for violations related to the same cases is Smarkets. The UKGC stated in its report that the company allowed its customers to deposit sums of up to 770,000 without verifying the source of the funds.
The list of companies that violated the licensing rules includes Betway, which received a $464,000 fine because it promoted gambling among underage people.
What Is the Impact of the UKGC Crackdowns on the Industry?
The UK market is the largest in the world and it drives the whole industry. However, the UKGC crackdowns have negatively affected the growth of the industry.
Starting in 2020, all sports betting sites were prohibited from sponsoring British sports teams. In addition, slots that include free spins or a gambling feature can no longer be offered.
Casinos are also banned from accepting credit cards. Considering that cryptos are not available, players can only use debit cards.
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