iGaming operator ComeOn has declared that it would be leaving the UK market and shifting its focus to other markets.
The European-focused online gambling firm initially acquired its license from the UK Gambling Commission (UKGC) five years ago. The conclusion of this five-year association was proclaimed during a recent update to stakeholders.
More stringent rulings in the UK have led to several popular gaming companies being handed with huge fines from the UKGC after the increased duty of care procedures were enforced. And while ComeOn has not been found guilty of breaking any of these regulations, the company explained to shareholders that it would not be taking any chances.
In the briefing, ComeOn CEO Labcene Merzoug said: “The UK is a very mature and highly competitive market and the financial risks are big.”
He stressed that ComeOn has never had a non-compliance breach while saying that the issuing of such massive fines to competitors has generated a lot of uncertainty.
Merzoug also confirmed that the company would also pull out its other brands, Mobilebet and GetLucky, from the UK market.
New British clients of all three sites would still be accepted until September 23 and current users will only be allowed to bet or deposit until September 27. They would then have until September 29 to withdraw funds online. However, customer support will aid with the withdrawals after this date.
Swedish-based ComeOn was procured by Cherry AB in 2017. The firm has recently gone on to concentrate its efforts on other European markets such as Germany, Denmark, and Poland, where new instant-play outfits have been launched.
However, the company has been slapped with large fines of £1.7m ($2m) by the Swedish regulator SGA under their Haiper and Faster brands after they were found offering bets to under-18s. The firm announced it is now looking to appeal, describing the fines to be “unproportional” to the infraction.
With the UKGC continuing to hand down one record-breaking penalty after another, ComeOn is making the call to withdraw from the market before more restrictions are announced.
Merzoug concluded his statement by saying:
“The UK license has lost its symbolic value. Before you almost had to have one to be looked upon as a credible company. Today we hold licenses in many European countries and given that the UK has never been a big market for us, it’s a wise move to put our focus elsewhere.”