UKGC suspends LEBOM’s licence over self-exclusion failures
Regulator suspends the startup sweepstake’s licence after it failed to integrate Gamstop's self-exclusion system
The UK Gambling Commission (UKGC) has suspended the licence of startup football sweepstake app LEBOM for failing to integrate Gamstop’s safer gambling self-exclusion scheme.
The requirement for UK licensees to participate in Gamstop and block access to any consumers who are registered on the system came about in 2020, and the UKGC has ruled that the lebom.app did not do this and therefore broke the terms of its licence.
The suspension comes into immediate effect, and the regulator has launched an investigation into the firm’s licence in line with section 116 of the Gambling Act 2005.
The UKGC has confirmed that customers can still access their accounts and withdraw funds, adding that LEBOM should focus on its users and keep them in the loop with the progression of the investigation and the status of its suspension.
Kay Roberts, UKGC executive director of operations, said: “Gamstop provides a crucial service for people who feel they are suffering gambling harm; it is simply unacceptable for any online operator to fail to integrate with the scheme.”
LEBOM was launched in 2021 after it secured £400,000 in seed funding, offering groups of friends the chance to compete against each other in predicting the outcome of Premier League matches.
The app is the brainchild of digital media professional Guy Phillips, who developed the concept alongside two co-founders after operating office-based football sweepstakes.
The app had stakes and winnings capped, with a maximum stake limit of £50 and a £1,000 ceiling on winnings.
LEBOM’s business model saw the firm take a 10% commission on all stakes.
The startup’s licence suspension comes after a swathe of action from the UKGC in recent months, which saw GGPoker fined £672,000 in October and Betfred slapped with a £2.9m fine in September.