The bookmaker fund protection scheme is a system set up by the UK Gambling Commission to protect customers’ gambling money if the operator goes bankrupt. It’s essential that all players establish whether their bookmaker adheres to it and what level of protection they have put in place.
What is the Bookmaker Fund Protection For Customers?
All regulated bookmakers in the UK have to obtain a license from the UK Gambling Commission. The UKGC lays down a series of rules and regulations, and some of these relate to gambling accounts and the funds held on behalf of customers.
When you sign up, deposit and play with a UK bookmaker, you are using your own money to stake on events. As part of those UKGC rules, an operator must provide levels of protection to provide security and a refund policy in case of its insolvency.
The Three Levels of Customer Funds Protection
There are three distinct levels of protection provided under the UK Gambling Commission rules.
High Protection
This is the most secure level of protection that an operator can provide under the scheme. When high protection is in place, the customer’s money is held in a trust account. This account is separate from the regular, everyday finances of the company, and this form of fund segregation leads to greater security if the firm goes bankrupt.
An external trustee or independent auditor must verify these accounts in order for the bookmaker to be able to claim the highest fund protection level.
Medium Protection
When medium protection levels are in place, the operator in question will have made their own arrangements to secure your money if they go bust. One example of this is to take out insurance to cover any shortfall in funds, and the insurers will then look to settle up.
The customer’s gambling money will be kept in a separate account to the one which operates the company’s everyday finances. Those accounts, plus any insurance, would be used to distribute money in the event of insolvency.
Medium bookmaker fund protection provides a higher likelihood of a full refund being made to each player if the company goes bankrupt, but there are no firm guarantees.
No Protection
There are instances where a bookmaker can set up under UKGC regulations without applying any level of recognised protection. In cases of non-remote and ancillary remote operators, a license may be provided for sports betting services, with no protection on their customer’s gambling accounts.
Players who open an account here are effectively doing so at their own risk. It’s possible that the operator may have their own rules relating to security and protection, but there is a much higher chance that your funds will be lost in the event of insolvency.
UK Bookmakers Protection Category
| High Protection | Medium Protection | No Protection |
| Highest level of protection available | Bookmaker implements methods such as insurance to cover customer funds. | No protection levels in place |
| Segregated funds held in a separate account from the bookmaker’s usual operations | Customer money is kept in separate accounts. | Customers play at their own risk with little likelihood of money being returned after insolvency |
| Accounts are verified by an independent trustee or auditor | Higher likelihood of refund arrangements in the case of bankruptcy, but no guarantees | Available for non remote and ancillary remote operations |
How to Check if a Bookmaker Offers Funds Protection
All bookmakers licensed and regulated by the UK Gambling Commission should provide one of the above levels of protection. Clearly, however, it’s best to have those higher levels in place, while an operator that offers no protection carries a much higher risk.
Here’s how you can check before you register for a new account:
- Call up the bookmaker’s homepage
- Find the link to the operator’s terms and conditions
- Full details of whether any protection is offered, including the exact level, should be clearly shown in this section
Under the rules applied by the UKGC, all regulated bookmakers are required to show this information, and it should be under those terms and conditions. If it’s not present, that could be a warning, but there are other things you can check before you decide not to use the bookmaker.
Look for other sections such as the security page. There may also be a separate area of the website which talks about funds. You could also get in touch with customer services to see if they can point you to the information.
If no details are present, it’s advisable to avoid the bookmaker. In most cases involving regulated sportsbooks, however, the terms and conditions will clearly lay out the details of their fund protection, including the level that they apply.
What happens to your funds if a UK betting company goes bankrupt?
If a UK betting company is set to go bankrupt, they have a legal obligation to tell their customers. The information will include details of what happens to any funds that they hold on behalf of players.
The process will provide a rundown on what happens next, and it will include essential information such as the details of the administrators.
All bookmakers who are licensed and regulated by the UK Gambling Commission should adhere to the fund protection scheme. If you have a balance in your gambling account, the likelihood of you getting a full refund depends on the level that is in place.
If the operator worked to the highest level of protection, it’s almost, but not completely certain that your funds will be returned. Customer money is placed into separate accounts in order to deal with this eventuality, and the priority for the auditors and administrators is to refund that money.
If a medium level of protection is applied, there is still a good chance that you will receive your funds. Operators continue to use a separate account for customer funds and can implement other security measures, such as insurance.
There is, however, no guarantee that funds will be returned. The administrators will deal with creditors in turn, and if there are large suppliers who are owed money, they will likely be settled first.
When a bookmaker has no level of protection, it’s extremely unlikely that you will receive a refund. This is the lowest level of security, and one where customers are not entitled to any returns. It’s not 100% guaranteed that your balance will be lost, but you should assume that there will be no refunds in these cases.
With those different levels in place, it’s advisable to check the details of your bookmaker before you register an account. Your funds are safer when you play with those carrying the highest levels of protection.
What are the risks of dormant betting accounts?
If a bookmaker goes bankrupt, your funds may be at greater risk if your account is dormant. If you haven’t logged in or staked for an extended period, your money may not be considered as customer funds.
The receivers decide whether or not an account is active, and this decision is vital in terms of paying customers back. It’s advisable to log into your account on a regular basis, and ideally you want to play with those funds.
If you maintain a dormant gambling account, there are more general risks involved. You may, for example, lose the login details, and if the customer service is poor, you may be in for a lengthy and frustrating process of gaining access to the platform.
If you are not using your account balance, it’s probably a good idea to withdraw the whole amount to your preferred funding method. Irrespective of which level of protection the bookmaker has, withdrawing those funds makes perfect sense if you’re not regularly staking with that platform and don’t expect to do so in the future.
Frequently Asked Questions
In the first instance you should contact the bookmaker’s customer service operators. There will usually be a choice of methods, including email and live chat. Usually, situations such as this can be resolved quickly. If you have been unable to withdraw because the company has gone bankrupt, you should establish whether your funds are covered under the bookmaker fund protection scheme and what level is in place.
If your account has been closed, the bookmaker should tell you the reasons why when they carry out the action. If they haven’t done this, you should contact their customer service department in the first instance. If the account has been closed because the operator has gone bankrupt, your likelihood of recovering funds will depend on whether fund protection applies, along with the level put in place.
All companies that provide gambling services must adhere to the fund protection scheme as put in place by the UKGC. This includes all places where you can gamble online or in person, so this cover both online and physical casinos.