An online gaming company has been fined £300,000 by the British gambling regulator after it was found the company was responsible for adverts that were misleading.

It is the first time that the Gambling Commission has issued a fine to a gambling operator over advertising failings (4-page / 178KB PDF).

The Commission said that adverts that BGO Entertainment Limited (BGO) ran on its own website and on the websites of third party affiliates had breached social responsibility obligations that the company was subject to as a condition of its operating licence.

In particular, the Commission found that BGO breached social responsibility rules, contained in its licence codes and conditions of practice (LCCP).

The social responsibility rules require gambling operators to abide by UK advertising rules set out in the CAP and BCAP codes and guidance that relate to "'free bet', 'bonus' or similar offers". The rules specifically require that gambling adverts "state significant limitations and qualifications". Any qualifications included "may clarify but must not contradict the claims that they qualify", according to the rules.

The Gambling Commission's programme director Paul Hope said: "We want to make sure that gambling is conducted fairly and openly. So, we have made it clear to the industry that misleading advertising is a serious issue. We have powers to tackle it, including the power to impose financial penalties such as this."

Hope said that the issues identified in the Commission's decision notice in this case "are likely to form the basis for future compliance assessments and could lead to enforcement action".

Earlier this year the Commission set out its plans to toughen its approach to enforcement where it finds gambling operators have breached their licensing conditions.

Gambling regulation expert Christopher Rees-Gay of Pinsent Masons, the law firm behind Out-Law.com, said: "This decision is important in a number of ways. Not only is it the first time that the Commission have imposed a financial penalty on an operator for advertising failings, it is also important as it confirms the change in stance of the Commission."

"In its consultation on changes to its enforcement strategy, which recently closed, the Commission said it was its intention to 'treat repeat behaviour by licensees and within the industry, as a significant aggravating factor at the enforcement stage'. In this case, the Commission identified issues with BGO's adverts over a period of time and said it had been in 'extensive contact' with the operator about those issues. It said, though, that the operator 'failed to take prompt and effective action to address the issues identified', suggesting that the Commission's plans to take a dim view of repeat infringing behaviour are already in practice," he said.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances,