Image: Gambling Commission
A licence does not provide bank-style protection
A Gambling Commission licence does not guarantee that your casino balance will be repaid if the operator becomes insolvent. The Commission's consumer guidance explicitly distinguishes gambling funds from personal bank-account protection. Relevant online operators must separate customer funds from operating accounts, but segregation alone does not establish that customers will recover the money.
Check the operator's disclosed customer-funds category as a separate question from whether its casino activity is licensed. This guide, checked on 13 October 2026, explains the Great Britain framework with two official operator examples. It is not a ranking of casinos, an insolvency forecast or advice to hold a larger balance at a particular brand. A protection category describes arrangements for a particular risk, not the overall quality of a gambling service.
What counts as customer funds?
The Commission's definition includes money deposited in the account, winnings owed or left there, and bonus money to which a customer has become entitled under the offer's terms. It treats stakes in an open bet differently: money already staked on an event that has not occurred is not customer funds covered by the operator's customer-funds arrangements.
Consider an invented account with £70 available cash and £20 already staked on an unsettled event. Do not combine those into a £90 protected balance merely because both appear on an account screen. The £70 and the open stake fall into different categories under the guidance. A displayed potential return of £100 on that unsettled bet is also not £100 already owed as settled winnings. Keep account balance, unsettled stakes and possible returns separate when reading a disclosure or documenting a problem.
The three protection categories
For online customer funds, the useful distinction is between Not protected, Medium protection and High protection. Under the minimum segregated arrangement, money is held separately but can still form part of business assets in insolvency. Medium adds arrangements intended to return money to customers without an absolute guarantee. High uses a formal trust with legal and practical separation and independent oversight.
| Category | Core distinction | Question to ask |
|---|---|---|
| Not protected | Separation does not protect against insolvency | Does the disclosure clearly say this? |
| Medium | Additional repayment arrangements | Which arrangement and limitations are stated? |
| High | Formal separated trust and independent oversight | Which funds and exclusions does the trust cover? |
The operator applies the category to its arrangements. Do not describe the category as a regulator-issued guarantee or read the word High as permission to ignore exclusions.
Example one: Sky's stated Medium protection
Sky's Licensing and Regulation help page states Medium protection and expressly says repayment is not absolutely guaranteed. That is the disclosed category checked on 13 October 2026, not our audit of its banking arrangements. The page describes separated funds and bank acknowledgement, which should be read with the full wording rather than reduced to a badge saying money is safe.
Our Sky licence case study explains why the current casino legal entity must be distinguished from an older surrendered record. Use the actual account's product and legal disclosure when reading its funds statement. A familiar brand name does not identify every legal contract. If the footer or funds terms change, preserve the new wording with its date rather than assuming an old screenshot remains a current disclosure.
Example two: Paddy Power's trust statement and exceptions
Paddy Power's official Trust Deed page describes High protection through a customer-funds trust. The same page states exceptions: some funds may instead need to be held in a separate non-set-off account under licensing requirements, and deposits through a third-party payment provider may not yet be covered by the trust during transit. Those qualifications are part of the example, not details to omit from a comparison.
We read the public disclosure on 13 October 2026; we did not independently audit the trust, inspect a customer's payment transit or verify how every product and territory is treated. Its historical deed date is not evidence that every present term is unchanged. Read the current account-specific statement before relying on this example. High and Medium are descriptions of different structures, not a verdict that one brand is a better gambling choice.
Finding the statement before depositing
Search the genuine operator's terms and help pages for customer funds, insolvency or protection of funds. Keep the rating, method, legal entity, applicable market and check date together. A licence logo in the footer is not a substitute for the disclosure, and a generic page about safer gambling may answer a different question.
- Confirm the exact domain and legal operator.
- Find the account's customer-funds disclosure.
- Record the category and method, not just the word protected.
- Read exclusions, payment-transit wording and product scope.
- Check that the statement concerns your territory and account.
- Keep a dated copy and ask the operator about any missing field.
A hypothetical statement saying only 'separate bank accounts' is incomplete evidence of insolvency protection. Ask which category is disclosed and where its method is described. Do not fill a blank with the highest category simply because the operator is licensed or well known.
Why a reminder does not improve the protection category
From 31 October 2025, operators holding unprotected funds must provide six-monthly reminders, with acknowledgement required before those held funds can be used for gambling. The reminder makes the status visible; acknowledging it does not turn the funds into Medium or High protection or create a government guarantee.
In an invented account showing a new funds notice beside a £40 balance, read the stated category before clicking through. A notification is information about the arrangement, not an instruction to deposit or gamble. If an updated statement differs from the saved version, retain both with their dates and ask which funds are covered by the new arrangement. Our player-protection guide covers other controls; this funds check remains separate from deposit limits, verification and promotion terms.
If the company actually encounters financial difficulties
Keep a record of your balance, settled winnings, open bets, deposits, withdrawal requests and the legal entity. Use genuine operator or appointed administrator communications to identify the applicable claim route. Do not give account credentials to a person claiming on social media that they can retrieve a frozen balance. A public complaint about a payment delay is not proof that a company is insolvent.
When pursuing a dispute, our withdrawal and complaint guide helps organise the transaction history, but ordinary ADR and a formal insolvency process are not interchangeable. Neither this article nor a category table can calculate the recovery in a specific insolvency. Treat a gambling account as an account for its stated service, not a savings account: the words licensed, segregated and protected each need their own precise explanation.
Sources
- Commission consumer insolvency guide, updated September 2025
- Commission customer funds and open-bet definition
- Commission insolvency ratings system
- Commission Medium protection consumer explanation
- Commission High protection consumer explanation
- Sky Medium disclosure, checked 13 October 2026
- Paddy Power trust and exceptions, checked 13 October 2026
FAQs
Does a UKGC licence guarantee my casino balance?
No. Licensing and customer-funds insolvency protection are separate questions. The Commission says gambling funds do not have the bank-style protection people may assume. Read the operator's disclosed category and method, including exclusions, rather than treating a licence logo or familiar brand as a repayment guarantee.
Are open bets covered by customer-funds protection?
The Commission's guidance excludes money staked on open bets from customer funds covered by those arrangements. An unsettled stake and a potential return are different from money deposited in the available balance or settled winnings owed. Keep them separate when reading a statement or documenting a specific claim.
What is the difference between Medium and High protection?
Medium involves additional arrangements intended to repay customer funds without an absolute guarantee. High uses a formal trust separated from the business with independent oversight. Read the operator's full current statement: payment-transit exceptions, product scope and the identity of the company matter alongside the category label.
Does acknowledging an unprotected-funds reminder protect my money?
No. The six-monthly reminder requirement effective from 31 October 2025 informs customers about unprotected funds; acknowledgement does not change the category. Save the disclosure and ask about unclear wording. A notification is not government insurance, a guarantee of repayment or a reason to keep a larger gambling balance.
18+ only. Gambling can be addictive; set limits and never chase losses. Free, confidential support: BeGambleAware.
