Canbet hands back UK operating licence

Beleaguered bookie Canbet appears to have raised the white flag after the operator handed back its UK operating licence in the face of crippling financial debts.

According to the UK regulator, the predominantly Australia-based Canbet “surrendered” its licence earlier this month as the operator continues to try and raise the funds necessary to pay back customers and other commercial creditors.

“On 7 May 2014, Canbet was removed from the Commission’s licence register after surrendering its operating licence,” the Gambling Commission confirmed in a statement.

In February the Commission revealed the number of customers awaiting funds from Canbet was on the rise and in March Canbet owner iGAS Group decided to put the operator and its assets up for sale as its troubled financial position became more clear.

However, eGaming Review understands that iGAS has so far been unsuccessful in finding a buyer and took the decision to hand back its licence as the Commission prepared to revoke the permit.

The Commission began a review of Canbet’s licence on 14 April and said it would have terminated the licence on the grounds of Canbet’s “inability or unwillingness to respond” to recent enquires as well as its inability to fulfil licence requirements due to its “financial circumstances”.

Implementing such a measure would have seen a change in position from the regulator after it previously spoke of its concern a licence termination would have on the chances of debtors being paid.

Reports of payment problems first emerged in August last year with Canbet originally attributing the problems to an IT failure. Canbet suspended operations in December and a number of customers remain in the dark over whether they will be repaid.

With the UK point of consumption regime set to bring all UK-facing operators of under the scope of the Commission, the Canbet saga provides the regulator with a stark reminder of the task ahead.

Canbet was unavailable for comment at the time of publication.