The UK Government and Unclaimed Online Gambling Winnings

April 06, 2011 | News Category: Casino Banking

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The government of the United Kingdom is looking into the possibility of seizing and using the unclaimed winning that are found at online gambling sites. MP Don Foster looked into the issue, and delivered his report to the Minister of Tourism and Heritage, John Penrose, this week. In July 2010, Penrose requested that Foster assess the issue of using the unclaimed winnings, which he hopes to use to improve sports facilities in the UK.

The funds in question are the dormant funds in online casino and other online gambling accounts, and unclaimed winnings. One of the reasons that there are sometimes dormant funds in an online casino account is because many online casinos will only pay out a minimum amount in a withdrawal. Sometimes, a player cannot fulfill the wagering requirements connected to an online casino bonus, and this money therefore sits in the player's account. There are instances where a player has only won a small amount, smaller than the minimum withdrawal amount, and then chooses to switch to another online casino or other online gambling site. When this happens, there are unclaimed funds that are left in the online casino account. These unclaimed funds are the ones that the British government is considering using for "good causes."

The online gambling industry is quite concerned about this, since they make money by earning interest on the money that is sitting unclaimed in online casino accounts. Players are also concerned because if the online casinos begin to makes less profits because this money is removed from their accounts, causing them to earn less interest, the online gambling operators may wish to make up this shortfall elsewhere. It could result in online casinos offering fewer benefits, such as smaller online casino bonuses, and tournaments with smaller prizes.

A benefit that could occur for players might be that online casinos would consider lowering, or removing, the minimum withdrawal amount, and thereby allowing players to withdraw any funds left at the online casino.

As for the question of what is considered to be a dormant account, there are recommendations in the study discussing this. It seems that should the government seize the funds, players and punters would still be able to reclaim their funds, however, they will have to prove that it is rightfully theirs.

Minister Penrose said: "I'll be looking at this report in detail, particularly in light of our work on the regulatory future of remote gambling to see whether we are able to make sure sporting good causes can benefit in the future."

Penrose also thanked Don Foster for the report, saying: "I'd like to thank Don for all his hard work in putting this report together and for everyone in the industry who has contributed with their views."