Customer-funds protection: what happens if a gambling business closes?

Read the statement before leaving money in an account

A gambling account can show an available balance without telling you how that money would be treated if the business could no longer pay its debts. Find the customer-funds statement before depositing, and save the applicable terms with the date. Protection arrangements address insolvency; they cannot prevent gambling losses.

This guide is for adults using online gambling businesses licensed in Great Britain. Northern Ireland and overseas services can have different rules. Start with our gambling-site checklist to confirm the legal business and exact domain. The examples below explain how to read published information; Pickybet has not tested an insolvency claim or audited an operator's accounts.

Which parts of a balance count as customer funds?

The Commission's consumer guidance includes deposited money, winnings owed to you or left in the account, and bonus money to which you have become entitled under the offer's conditions. An advertised reward that you have not earned is a different matter. Record cash and conditional rewards separately rather than adding every displayed figure together.

Money already staked on an open bet is excluded from this customer-funds definition. For example, if £40 remains available and £10 is committed to a match that has not taken place, do not describe the whole £50 as a protected account balance. This example explains the scope of the arrangement, without deciding whether any particular claim would succeed. Keep the bet reference and the available balance as separate records.

What does not protected mean?

The regulatory rating system separates two not-protected descriptions. For remote operators holding customer funds, the minimum is segregation: the money is kept apart from business funds but would still be part of the business's assets in insolvency. Separation alone therefore gives no insolvency protection.

The other description, no segregation, is permitted only for non-remote and ancillary remote operators. It is not the minimum category for the online casinos and bookmakers covered here. Read the full label rather than assuming every use of the word "separate" means repayment is secured.

What does medium protection mean?

Additional arrangements have been made to return customer-account assets in insolvency. The Commission gives insurance as one possible approach, and its regulatory guidance also describes specific account arrangements. Its consumer explanation expressly says there is no absolute guarantee that you will get your money back.

Ask what arrangement the operator actually uses. A category name does not explain which money is covered, how a claim would be handled or how long it might take. Do not translate medium into a promised repayment percentage.

What does high protection mean?

High protection involves a formal trust that is legally and practically separate from the company's affairs, with independent trustee or external-audit controls. The Commission describes this as the highest level and the best chance of recovering money if the business becomes insolvent.

Read the operator's explanation and exceptions alongside that category. High is a description of the arrangement, not a guarantee from Pickybet of an immediate payment. It also says nothing about winning chances, bonus value or whether gambling fits your circumstances.

Check who applies the category

Operators assess their arrangements and disclose the relevant category. The Commission's guidance cautions against implying that it has approved the individual operator's rating. A link to the regulator or a licence badge does not replace the statement.

In your notes, separate three things: the label, the mechanism described and the scope. If a site gives a label but no explanation, leave the mechanism unresolved. If it says money is protected without naming the category, ask which category and clause it means. Do not fill either gap using an old review or another brand's terms.

A published example: read beyond the headline category

Paddy Power's General Terms, checked on 1 October 2026, name high protection in clause 7.8. Clause 7.7 describes a trust administered by The Sporting Exchange (Clients) Limited. Clause 7.9 then sets out exceptions: some funds may have to be held separately under licence requirements, and deposits through a third-party payment provider may take a few days to reach the trust. During that interval, the terms say those funds are outside the trust's protection.

The useful question is therefore whether the arrangement applies to the money at its current stage. Save the exception with the headline statement. This is a reading example, not a recommendation or an assessment of Paddy Power's financial position. Recheck your own applicable terms; arrangements can change. Our Paddy Power review covers the wider product and account checks.

Read deposit acknowledgements and reminders

Licence condition 4.2.1 requires disclosure of the level and method of protection, with an acknowledgement at the first deposit and at the first deposit after a change in the protection terms. Customers must acknowledge the information before using those funds to gamble.

Since 31 October 2025, operators with a not-protected rating must also remind customers every six months, referring to the amount held, and obtain acknowledgement before permitting use of those funds for gambling. Receiving a reminder does not upgrade the protection category. Read it and decide whether you want money left in the account; you do not need to place another bet to respond.

If the business announces closure

Read the official notice carefully: an orderly exit from the market and insolvency can require different next steps. The Commission expects closing businesses to explain contact routes, complaints and how liabilities will be handled. For online businesses leaving for reasons other than insolvency, its guidance calls for a plan to return customer funds even after the website closes.

Save the notice, dated balance and transaction history, outstanding withdrawal references, open-bet details and applicable funds statement. Check who the notice identifies as handling payments or claims, and record any deadlines. Verify the contact through the operator's official notice before supplying documents. An old customer-funds label cannot tell you the outcome of the actual closure process.

Keep payment delays and complaints in context

A delayed withdrawal alone does not establish that the business is insolvent. First identify the payment stage using our withdrawal checks guide. Before another deposit, our payment-method checklist helps you check the return route.

If an account dispute remains unresolved, follow the contact and complaint instructions actually available. The Commission's closure guidance says operators should retain a customer-contact route; the regulator does not handle individual customer complaints. Our complaints process guide helps organise a dispute, but its ordinary timetable does not guarantee repayment during insolvency.

Does a higher category make gambling safe?

It addresses one risk to money held by the business. You can still lose the money you stake, and the arrangements do not turn an account into a savings product. Do not deposit extra or gamble to recover a missing balance. If the uncertainty is making it harder to stop, use the support options on our safer-gambling page.