The Gambling Commission has fined UK operator BGO £300,000 for breaching marketing and advertising codes. This serves as a warning to other operators that the regulator is serious about advertising and consumer protection.
The UK Gambling Commission conducted a review of BGO Entertainment Limited’s remote operating licence and found breaches of conditions relating to marketing and advertising on its own website and three affiliate websites. This resulted in a £300,000 fine for BGO, highlighting the Commission’s focus on consumer protection.
In order to comply with marketing and advertising requirements, Commission licensees must adhere to the British Code of Advertising, Sales Promotion and Direct Marketing (CAP Code), the Television and Radio Advertising Standards Code (BCAP Code), the Gambling Industry Code of Socially Responsible Advertising, and the Commission’s own licence conditions and codes of practice (LCCP).
BGO had previously been warned about its advertising practices in 2015 and failed to take prompt and effective action to address the issues identified. The Commission found that BGO’s advertisements were potentially misleading to consumers due to the lack of significant limitations and qualifications relating to promotions.
Despite a “Copy Advice Audit” commissioned by BGO in 2016, which provided recommendations on how to address the issues, the required changes were not initially implemented. A total of 21 advertisements were ultimately found to be in breach of the social responsibility code.
As a result of BGO’s actions, the Commission issued a formal warning and imposed a £300,000 fine. This highlights the importance of understanding and applying the advertising rules, taking responsibility for third-party affiliates, cooperating transparently with the Commission, and making full disclosure during investigations.
The BGO case demonstrates the Commission’s commitment to consumer protection and raising standards in marketing and advertising. Operators must ensure compliance with all marketing and advertising requirements to avoid enforcement action. This includes reviewing and improving their marketing efforts, managing affiliates effectively, and providing appropriate training.
Operators should take note of the issues identified in the BGO decision and proactively ensure their advertising practices meet social responsibility requirements and do not mislead consumers.
