SBC News Voice of the Sports Betting Industry
The UK Gambling Commission (UKGC) has announced that it will require UK licensed online gaming and betting operators to display a customer fund protection rating on their terms and conditions page.
The three tiered rating system will provide UK online gaming consumers with further information regarding operator player fund protection, payment processing and operator fund terms.
The UKGC will require all licensed operators to publish the rating system by the 31 December. The rating sets out basic, medium and high levels of fund segregation and protection.
From 2 February 2015, all operators will have to display their fund rating to all depositing customers. UK betting consumers will have to acknowledge the operators rating in order to proceed with their transaction.
UKGC Customer funds ratings categories are as follows
- Basic – Segregation of customer funds – Customer funds are kept in accounts separate from business accounts but they would form part of the assets of the business in the event of insolvency. These accounts may include bank accounts, investment accounts and other accounts.
- Medium – Quistclose or equivalent – Customer funds are kept in accounts separate from business accounts; and arrangements have been made to ensure assets in the customer accounts are distributed to customers in the event of insolvency. The arrangements falling in the medium category include Quistclose accounts and insurance arrangements.
- High – Independent trust account – Customer funds are held in a trust account which is verified and subject to controls by an independent trustee.
