The UK Gambling Commission has suspended the license of Lebom, a gambling operator, until the Commission is satisfied with the integration of the compulsory self-exclusion program, Gamstop. The suspension is a response to Lebom’s failure to comply with regulations and underscores the importance of operators aligning with responsible gambling measures.
Duration of Suspension:
The suspension will remain in effect until the Gambling Commission is assured of Lebom’s successful integration with Gamstop. The self-exclusion program, mandated for all gambling companies since 2020, is considered a crucial service for individuals experiencing gambling harm.
Comment from Gambling Commission Executive Director:
Kay Roberts, Executive Director of Operations at the Commission, emphasized the critical role of Gamstop in addressing gambling harm. The failure of any online operator to integrate with the scheme is deemed unacceptable, reflecting the Commission’s commitment to ensuring player protection.
Expectations During Suspension:
While under suspension, Lebom is expected to uphold fair treatment of customers and keep them informed about any developments within the company. The Commission’s stance emphasizes the ongoing responsibility of operators to prioritize customer welfare even amid regulatory actions.
Review of Lebom’s License:
The Gambling Commission has initiated a comprehensive review of Lebom’s license under section 116 of the Gambling Act 2005. This review further underscores the seriousness of the compliance issues and aims to assess the operator’s overall adherence to regulatory standards.
Background on Lebom’s Betting Model:
Lebom garnered attention for its innovative betting model, as explored in an exclusive interview with co-founder Guy Phillips in the previous year. The model focused on private groups competing against each other, deviating from the traditional sportsbook system. The current license suspension poses challenges for the company’s aspirations.
Reflection on Due Diligence:
The suspension appears to highlight a breakdown in due diligence on Lebom’s part, a common challenge for gambling start-ups. Due diligence is a crucial aspect of compliance with UK Gambling Commission regulations, and any lapses can lead to severe consequences, potentially jeopardizing the entire business.
Industry Insights on Compliance Challenges:
The broader issue of due diligence and compliance challenges for gambling start-ups is a subject explored in a recent edition of Gambling Insider. The magazine delves into the complexities faced by new entrants in the gambling industry, offering insights into regulatory nuances and the importance of robust compliance measures.
Lebom’s license suspension serves as a stark reminder of the uncompromising stance of regulatory authorities in ensuring operator compliance with responsible gambling measures. The incident prompts a broader industry discussion on due diligence, compliance challenges, and the ongoing commitment required to prioritize player protection in the evolving landscape of online gambling.