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Information on what happens to your money in the case of insolvency or a gambling business going bust
Published: 23 September 2020
Last updated: 5 October 2021
This version was printed or saved on: 28 April 2024
Online version: https://www.gamblingcommission.gov.uk/public-and-players/guide/what-happens-to-your-money-if-a-gambling-business-goes-bust
Overview: Money staked or deposited with a gambling business is not protected by the Commission or government the way that personal bank accounts are.
Any gambling business you make a bet with must tell you whether your money has any protection in case they were to go bust.
This guide will tell you about the three different ways a gambling business may treat your money, where to find this information, and what we require of gambling businesses. This should help you to make informed decisions on which gambling businesses to gamble with based on how they treat your money.
It is important to note that although online gambling businesses licensed by us must keep customer funds in a separate account, there is no guarantee that this will ensure that customers get any of their money back if the business runs into financial difficulties. Those using gambling businesses do so at their own risk.
We require gambling businesses to:
When we license a gambling business we look at suitability, including their financial circumstances. We do not oversee their businesses on a day-to-day basis or monitor the financial health of companies directly in real time.
The following bullet points explain what is considered to be your money (or 'customer funds').
An ‘open bet’ is where the customer has paid money for a bet and the event on which the bet has been placed has not yet occurred.
Money staked within open bets is not considered to be customer funds and is therefore not covered by any arrangements the gambling business has in place to protect customer funds if it goes bust.
The gambling business must make it clear which rating applies to customer funds in their terms and conditions.
Gambling businesses are legally allowed to hold your money in overseas bank accounts. However, this does not affect your rights. Money in your account will be treated in line with any protection in place.
Any money in your account would be classed as part of the gambling company’s assets if it went bust.
You would likely lose any money in your account.
It should be clear from your company’s terms and conditions if your money is not protected.
The exact wording varies from company to company. However, an example would look something like the following.
"These funds are not protected in the event of insolvency: not protected segregation."
The gambling business has made arrangements to protect your money if they go bust. There are different ways to do this, for example, by having insurance.
However, it is not absolutely guaranteed that you will get your money back if the business goes bust.
It should be clear from the company’s terms and conditions that your money has the medium level of protection.
The exact wording varies from company to company. However, an example would look something like the following.
“Customer funds are kept in accounts separate from business accounts; and arrangements have been made to ensure assets in the customer accounts are distributed to customers in the event of insolvency. This meets the Gambling Commission’s requirements for the segregation of customer funds at the level: medium protection.”
Your money is held in a separate account, and is legally recognised as separate from the business. The money in your account is controlled by an independent trustee and is also checked by an external auditor.
You have the highest level of protection and the best chance of getting your money back if the business goes bust.
It should be clear from the company’s terms and conditions that your money has a high level of protection.
The exact wording varies from company to company. However, an example would look something like the following:
"Customer funds are held in a formal trust account which is legally and in practice separate from the affairs of the company; and is verified by and subject to controls by an independent trustee or external auditor. This arrangement meets the Gambling Commission's requirements for the protection of customer funds at the level: high."