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Terms giving licensees undue discretion on their application

You are required by the terms of your licence to make sure that the terms on which gambling is offered are not unfair within the meaning of the Consumer Rights Act 2015. Under that Act, a term is unfair if it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer. A term that gives a licensee the discretion to decide when and how it is applied would be unfair under that meaning.

You should not use terms that give you sole discretion as to if and how they are applied. This particularly includes terms covering treatment of customers’ funds where a licensee believes there has been:

  • illegal, irregular or fraudulent play
  • use of multiple accounts
  • third party use or funding of accounts.

Example of what not to do

Have terms that say you “may” or “reserve the right” (or similar) to void or withhold a customer’s winnings in certain situations including those listed above. Customers are entitled to know what action you would take in those terms. Any of your terms concerning treatment of customers’ funds should also comply with our guidance on their un-staked deposits.

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Promotional play restrictions
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Terms allowing licensees to confiscate customers’ un-staked deposits
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