UK Edition
Gambling Commission issues first fine for advertising failings against Guernsey-based BGO
The Gambling Commission has levied its first financial penalty for advertising failings after fining Guernsey-based BGO Entertainment £300,000.
The commission said it had issued the fine for nine misleading advertisements by BGO on its own website between July 2015 and July 2016 as well as 14 on affiliates' websites between February and October last year.
Since May 2015, the commission's Licence Conditions and Codes of Practice have required all licensed gambling operators to avoid misleading consumers about promotions.
This means companies must clearly state what a 'free bet', 'bonus' or similar offer actually means and what consumers have to do in order to qualify for these things.
The commission asked online gaming companies in June 2015 to make sure their advertisements met the standards of the new rules but BGO was one of several companies that was identified for not complying.
The company's advertisements did not suitably outline what conditions there were around its promotions and so the commission deemed its advertisements "potentially misleading to consumers".
While BGO reassured the commission it would take action, the watchdog said it continued to find evidence that advertisements on BGO's website and on affiliates' sites were potentially misleading.
In May 2016, BGO commissioned an audit of its website that suggested some recommendations for BGO to follow but the company did not initially do this and so continued to breach advertising-related rules.
Following further engagement, the commission said BGO made the changes recommended in the audit in late July 2016 but that it continued to find and capture evidence of ongoing breaches in relation to advertising on third-party websites with which BGO had a contractual relationship up to October 2016.
Paul Hope, programme director at the Gambling Commission, said concerns were first raised with BGO about its advertising in July 2015, with the investigation focusing on misleading advertisements for promotions.
The commission said BGO that “did not take timely and effective action to address the misleading advertisement” and that it provided inaccurate assurances that the issues had been fully addressed”.
Mr Hope added: “We want operators to take note that the issues identified in the decision notice are likely to form the basis for future compliance assessments and could lead to enforcement action.”
BGO Group, which owns BGO Entertainment, is a privately owned online gaming company operating in regulated European markets. It launched in 2012 “with an objective to bring to market the best casino, bingo and slot products under one brand”, according to its website.
The Advertising Standards Authority has previously upheld a complaint about one of BGO Entertainment’s advertising campaigns, asking it not to run a broadcast advert again in its current form and urging the company not to make adverts that could suggest gambling is a way to achieve financial security.