UK betting giants let off the hook after covert deals with watchdog

The UK Gambling Commission is under fire for accepting revenues from betting firms in exchange for not publicizing failures found during investigations.

As reported by The Observer, the British gambling watchdog has been giving “special measures” to a small group of betting firms.

These measures let companies avoid fines or license revocations and keep investigative findings private by divesting profits with the regulator for charitable causes.

The regulator first introduced special measures in September 2020, with officials viewing the policy as a helpful tool for providing a quick resolution for companies to atone for failings.

Despite the UK gambling industry seeing new changes enforced, the public is not notified of these deals. This means millions of players cannot scrutinize which operators they can safely make bets with.

Campaigners proclaim that the regulator has created a “protective bubble” for betting firms with its special measures regime and claim that it is harming problem gamblers.

Annie Ashton filed legal action against the watchdog in the UK High Court last week. Her husband, Luke, took his own life after developing a gambling addiction in 2021.

The inquest highlights the failures of gambling industry giant Betfair, which neglected to recognize Luke Ashton’s addiction at the time.

Betfair was still considered under special measures from the Gambling Commission when Luke died in April 2021. This was admitted by the regulator after Luke’s inquest was complete in 2023, sharing that the investigation found Betfair failed to flag vulnerable users.

It was also revealed that Betfair willingly donated £635,123 ($798,000) to numerous charities to soften punishments. Like other firms, Betfair also agreed to submit an improvement plan to avoid formal repercussions.

The Gambling Commission refuses to publicize the number of firms under special measures in the last three years or share revenue received from betting firms.

A spokesperson for the UK Gambling Commission said: “The Gambling Commission does not automatically publish the outcomes of special measures activities given they are designed to give effect to swifter action on the part of the operator short of exercising formal regulatory powers.

“Most regulators have a range of different interventions they can make, and also a threshold below which they do not routinely publicize interventions they may have made. The Gambling Commission has consistently published enforcement outcomes, and there is a register available detailing these actions.

“We extend our sincere condolences to the family and friends of Luke Ashton. In line with our statutory duties as the gambling regulator, we will continue to take appropriate enforcement action where needed. The Commission’s formal regulatory powers remain in place.”

Featured image: Charles Postiaux / Unsplash

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