- Fund protection at bookmakers refers to measures taken by bookmakers to safeguard customers' funds.
Fund protection at bookmakers refers to measures taken by bookmakers to safeguard customers’ funds
What Is Fund Protection At Betting Sites?
Bookmaker fund protection refers to the measures put in place by a gambling company to safeguard the funds belonging to its customers. This ensures that customers’ money is protected in the event of the bookmaker’s insolvency or bankruptcy.
The level of protection provided by the bookmaker may vary, and it is important for customers to understand what type of protection is in place for their funds.
Definition of "Customer Funds"
The UK Gambling Commission classifies “customer funds” as the following:
- Money you deposit to your online account
- Any winnings that are due to you or remain in your account
- Any bonus funds to which you are entitled based on the terms and conditions of the promotion.
Note that funds that are currently placed as bets are not classified as customer funds and therefore are not subject to any measures put in place by the gambling company to protect such funds in case of their insolvency.
Gambling companies are authorised to keep your funds in foreign bank accounts, but this will not impact your entitlements. Your funds in the account will be handled in accordance with any safeguards that have been put in place.
Levels of Fund Protection
UK registered gambling businesses offer three levels of protection, as follows:
No Protection
“No protection” means that if the gambling company were to become bankrupt, any funds in your account would be considered as the company’s assets, and you are therefore likely to forfeit those funds.
A betting site’s terms and conditions should make it evident whether or not your funds are safeguarded. Although the exact phrasing may differ depending on the company. A statement indicating that there is no protection is in place could read like this example:
“If the company goes bankrupt, there is no protected segregation in place to safeguard these funds.”
Medium Protection
“Medium protection” means that gambling company has taken steps to safeguard your funds in the event of their insolvency. Various methods may be employed to achieve this, such as securing insurance. Nevertheless, there is no complete assurance that you will recover your funds in the event of the company’s bankruptcy.
A betting site’s terms and conditions should state the medium level of protection afforded to your funds. While the specific language may vary from one company to another, an illustration of such a statement could be as follows:
“Funds belonging to customers are held in separate accounts from those of the business, and measures have been put in place to ensure that assets held in these customer accounts will be distributed to the appropriate customers in the event of the company’s insolvency. This fulfills the requirements set by the Gambling Commission for segregating customer funds at the medium level of protection.”
High Protection
“High protection” means funds belonging to you are held in a distinct account that is legally acknowledged as separate from the business. An independent trustee manages the funds in your account, which are also subjected to review by an external auditor. With the highest level of protection afforded, your likelihood of recovering your funds in the event of the company’s insolvency is maximised.
A betting site’s terms and conditions should make it evident that your funds are safeguarded to a significant degree. While the precise phrasing may vary from one company to another, an illustration of such a statement could be as follows:
“Funds belonging to customers are held in a formal trust account that is distinct from the company’s operations, both legally and in actuality. An independent trustee or external auditor is responsible for verifying and monitoring the account. This setup complies with the Gambling Commission’s criteria for shielding customer funds at the highest level.”
The Safest Bookmakers
As part of our bookmaker review process, we have evaluated the fund safety of all major bookies, resulting in a comprehensive rating out of ten.
This rating prioritises the bookmaker’s level of fund protection while also considering the company’s financial performance and any dormant account fees charged. This stringent rating criteria has identified the safest bookmakers for depositing your money.
It is important to note that fund protection is an area where bookmakers, as a whole, need significant improvement.
| Rank | Bookmaker | Fund Protection Rating | Learn More | Website |
|---|---|---|---|---|
| 1 | Paddy Power | Review | PaddyPower.com | |
| 2 | Betway | Review | Betway.com | |
| 3 | Coral | Review | Coral.co.uk | |
| 4 | Ladbrokes | Review | Ladbrokes.com | |
| 5 | Betfair | Review | Betfair.com | |
| 6 | BetVictor | Review | BetVictor.com | |
| 7 |  888 Sport | Review | 888sport.com | |
| 8 |  William Hill | Review | Williamhill.com | |
| 9 |  Bet365 | Review | Bet365.com | |
| 10 |  Unibet | Review | Unibet.com |
Should I Avoid Medium or Low Fund Protection?
Choosing to bet at a bookmaker with medium or low protection for customer funds is a personal decision influenced by various factors.
While lower fund protection may indicate that the bookmaker doesn’t safeguard customer funds as rigorously as other sites, it doesn’t automatically mean the website is disreputable or untrustworthy.
Some customers might opt to take the risk in using a low protection bookmaker if it has a great reputation, or provide other benefits — such as better odds or more attractive promotions.
To mitigate the risk of fund loss, it is advisable to maintain a low balance at all bookmakers. However, it’s important to understand that gambling inherently involves risk, which is slightly higher when using a website with low fund protection.
Financial Performance
The financial performance of a bookmaker is a good indicator of how safe the site is to use because it reflects the company’s stability, profitability, and overall health.
A bookmaker with strong financial performance is more likely to have robust systems in place to protect user funds, pay out winnings promptly, and maintain high standards of service.
Conversely, a bookmaker with poor financial performance may struggle with cash flow issues, increasing the risk of delayed payments, inadequate fund protection, and potentially even bankruptcy. Therefore, assessing a bookmaker’s financial performance provides valuable insights into its reliability and security for users.
Dormant Account Fees
Dormant account fees at bookmakers can be a significant indicator of the site’s overall approach to user fairness and transparency. Bookmakers that impose high fees on inactive accounts may be prioritising their profit margins over customer satisfaction, potentially signaling less user-friendly practices.
On the other hand, bookmakers with low or no dormant account fees demonstrate a commitment to treating customers fairly, even when they are not actively using their accounts.
These practices can reflect the bookmaker’s broader ethical standards and customer care policies, which are essential factors in determining the safety and trustworthiness of the site.
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