Investigation launched to discover if online gamblers being conned

The official Competition and Markets Authority (CMA) announced Friday a major investigation into Britain's 5 billion U.S. dollars-a-year online gambling business.

The authority is to probe whether online gambling firms are treating their 5.5 million customers fairly.

The investigation follows concerns raised by the Gambling Commission about potential breaches of consumer law, including misleading promotions and unfair terms, being used by firms to block payouts to online gamblers.

The CMA said Friday it had issued notices under British consumer protection legislation requiring evidence from companies as a first step to establishing whether enforcement action is required.

People using gambling sites have also been asked if they have any experiences of unfair practices.

Online gambling in Britain has grown by around 146 percent since 2009 with more people regularly logging on to sports betting, gaming and casinos using gambling websites.

Nisha Arora, CMA senior director for Consumer Enforcement, said: "Gambling inevitably involves taking a risk, but it shouldn't be a con. We're worried players are losing out because gambling sites are making it too difficult for them to understand the terms on which they're playing, and may not be giving them a fair deal."

"We are now investigating to see whether firms are breaking the law," said AroraArora.

"We've heard worrying complaints suggesting people may be lured into signing up for promotions with little chance of winning because of unfair and complex conditions. We're now working closely with the Gambling Commission to examine this more closely," added Arora.

Sarah Harrison, CEO of Britain's Gambling Commission, said: "We expect the gambling industry to ensure terms and conditions are not unfair. However, operators are still not doing enough. I continue to have concerns that many of these appear to bamboozle rather than help the customer make informed choices.

The CMA said an initial review has already highlighted examples of potentially unfair treatment.

It includes gamblers being locked into complex and strict requirements linked to gaming promotions that are difficult to understand and may be unachievable.

It has also shown companies having a wide discretion to cancel bets or alter odds after bets have been accepted, because they made a mistake when the odds were first set and terms restricting players' ability to challenge a gambling firm's decision.

A spokesman for the CMA said: "The investigation may lead to further action, such as enforcement action to secure improved compliance across the remote gambling sector." Endit