Bacta presents evidence of unfair banking treatment towards Its members to Treasury Select Committee

UK trade association Bacta has reached out to the UK government, expressing apprehension regarding the banking sector's alleged unfair treatment of businesses in the sector, including abrupt facility withdrawals in certain instances.

Established in 1974, the association represents the UK amusements and low-stake gambling industry. 

"We want to confirm that a number of our members have had their banking facilities suddenly and unexpectedly removed. The reasons given are that the banks consider gambling, even low stake low prize activities such as ours, as a money laundering risk - which is nothing short of preposterous. Furthermore, we have been told that banks consider gambling to pose a reputational risk which, they say, offends their Corporate Social Responsibility policies," Bacta CEO John White said in evidence provided to the Treasury Select Committee.

"Irrespective of anyone's moral perspective on gambling, there should be no circumstances other than illegality, for a bank not to offer banking services to any of our members," he added.

Confirming the legitimacy of the industry, he wrote to the Committee that it's important to note that this is a highly regulated industry, with all operators needing some form of a license from the Gambling Commission and venues being required to obtain licenses as well.

“The conditions under which operators conduct their business are set down in law or via the Gambling Commission's Licence Conditions and Codes of Practice (LCCP). Furthermore, bacta members must adhere to the association's Code of Conduct and Social Responsibility Charter which goes beyond the law and LCCP in promoting high operating standards," he wrote.

Highlighting the substantial ramifications of denying banking services to a business, he underscored that the process of locating an alternative bank incurs significant time and expenses. Additionally, customers' debt situations could be profoundly affected, and the ability to replicate lending facilities remains a complex challenge.

“It appears that a moral or political judgment is being made about a business, with little if any real transparency or opportunity to challenge a decision. Small to medium-sized businesses are simply not resourced to take on a big bank,” the letter said.