Gambling Commission sends out stern warning
The UK Gambling Commission (UKGC) has sent out a stern warning to the gambling industry that the inappropriate use of gagging orders given to customers who had accepted a settlement in return for not reporting them to the UKGC for irregular practices of social responsibility.
Investigation
They are investigating claims that were reported in the Guardian alleging that one of Britain’s biggest bookmakers Ladbrokes, had agreed to pay almost £1 million to victims of a problem gambler who had stolen money from them to fund his gambling habit, in return for them not making a complaint to the Gambling Commission.
According to the report in the Guardian the gambler who was a British citizen and had a property business in Dubai, admitted stealing the money from his clients which he then used to fund his gambling habit which ran up £60,000 per day.
It came to light after five of his victims complained to Ladbrokes who then made a payment of a combined sum of £975,000, in which they agreed not to pursue any complaints to the gambling regulator for accepting the payment.
The Gambling Commission issued a statement saying: “We have become aware that some licensees have been including non-disclosure clauses within settlement agreements with consumers and we are continuing our investigation into these.
“Some of these agreements may have had the effect of preventing those consumers from reporting regulatory concerns to us, by either excluding disclosure to any third party or, in some cases, explicitly preventing customers from contacting the Gambling Commission.
“We recognise that in certain commercial contexts, use of NDAs is commonplace and such agreements, when used properly, can benefit both parties. Examples of appropriate use might include resolving supplier or intellectual property disputes.
“However, we are keen to ensure that non-disclosure clauses do not result in consumers feeling they are unable to notify the commission or other regulators or law enforcement agencies of conduct which might otherwise be reported.”
