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Sky Bet fined £1m for failing to protect vulnerable customers | Sky Bet fined £1m for failing to protect vulnerable customers |
(about 1 hour later) | |
Online gambling firm Sky Bet has been fined £1m for allowing hundreds of potentially vulnerable people to keep betting after they asked to be barred from doing so, while sending promotional material to 50,000 more. | |
Industry regulator the Gambling Commission said Sky Bet was guilty of failings in its self-exclusion tools, which are meant to help people who fear they have a gambling problem lock themselves out of online casinos and sports betting. | Industry regulator the Gambling Commission said Sky Bet was guilty of failings in its self-exclusion tools, which are meant to help people who fear they have a gambling problem lock themselves out of online casinos and sports betting. |
The fine comes amid delays to the launch of an industry-wide system called GamStop designed to allow addicts to block themselves from multiple companies, following high-profile problems with individual firms’ self-exclusion schemes. | The fine comes amid delays to the launch of an industry-wide system called GamStop designed to allow addicts to block themselves from multiple companies, following high-profile problems with individual firms’ self-exclusion schemes. |
The Gambling Commission said 736 Sky Bet customers who had self-excluded were able to open new accounts, in some cases using the same details previously registered with the company. | The Gambling Commission said 736 Sky Bet customers who had self-excluded were able to open new accounts, in some cases using the same details previously registered with the company. |
About 50,000 self-excluded customers continued to receive marketing material from Sky Bet by email, text or a mobile app notification after self-excluding. | About 50,000 self-excluded customers continued to receive marketing material from Sky Bet by email, text or a mobile app notification after self-excluding. |
A further 36,748 did not have the balance of their funds with SkyBet returned to them upon closing their accounts. | A further 36,748 did not have the balance of their funds with SkyBet returned to them upon closing their accounts. |
The fine would have been higher but Sky Bet reported the issue to the Gambling Commission of its own accord. | The fine would have been higher but Sky Bet reported the issue to the Gambling Commission of its own accord. |
“This was a serious failure affecting thousands of potentially vulnerable customers and the £1m penalty package should serve as a warning to all gambling businesses,” said the Gambling Commission programme director, Richard Watson. | “This was a serious failure affecting thousands of potentially vulnerable customers and the £1m penalty package should serve as a warning to all gambling businesses,” said the Gambling Commission programme director, Richard Watson. |
“Protecting consumers from gambling-related harm is a priority for us and where we see operators failing in their responsibility to keep their customers safe we will take tough action.” | “Protecting consumers from gambling-related harm is a priority for us and where we see operators failing in their responsibility to keep their customers safe we will take tough action.” |
The vast majority of the £1m fine will be paid to charities for socially responsible purposes, the Gambling Commission said. | The vast majority of the £1m fine will be paid to charities for socially responsible purposes, the Gambling Commission said. |
Sky Bet’s rival, 888, paid £7.8m last year for failures relating to self-exclusion, the largest penalty ever handed out by the industry regulator. | Sky Bet’s rival, 888, paid £7.8m last year for failures relating to self-exclusion, the largest penalty ever handed out by the industry regulator. |
Matt Zarb-Cousin, who founded an app called Gamban that allows problem gamblers to block betting sites from their own computer or phone, said the industry had a poor record. | Matt Zarb-Cousin, who founded an app called Gamban that allows problem gamblers to block betting sites from their own computer or phone, said the industry had a poor record. |
“Sky Bet is only the latest in a long line of failures by operators to uphold self-exclusion, while the multi-operator scheme GamStop has been delayed until later this year,” he said. | “Sky Bet is only the latest in a long line of failures by operators to uphold self-exclusion, while the multi-operator scheme GamStop has been delayed until later this year,” he said. |
“Operators should give customers who self exclude the opportunity to block all gambling sites and apps on their devices by offering software that can’t be user-uninstalled.” | “Operators should give customers who self exclude the opportunity to block all gambling sites and apps on their devices by offering software that can’t be user-uninstalled.” |
The Sky Betting & Gaming chief executive, Richard Flint, said: “We have always taken responsible gambling and player protection very seriously but this incident showed that we needed to do more. | The Sky Betting & Gaming chief executive, Richard Flint, said: “We have always taken responsible gambling and player protection very seriously but this incident showed that we needed to do more. |
“When we spotted the issue we pro-actively notified the Gambling Commission and have worked to improve our processes to avoid this happening again. | “When we spotted the issue we pro-actively notified the Gambling Commission and have worked to improve our processes to avoid this happening again. |
“We could and should have made it harder for self-excluded customers to open duplicate accounts with us and for that we are sorry. | “We could and should have made it harder for self-excluded customers to open duplicate accounts with us and for that we are sorry. |
“We fully agree with the Gambling Commission’s findings and will donate the agreed sum to charities for socially responsible purposes.” | “We fully agree with the Gambling Commission’s findings and will donate the agreed sum to charities for socially responsible purposes.” |
He said the company had not made any profit out of the episode. | He said the company had not made any profit out of the episode. |
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