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Ladbrokes Coral fined after customer lost £98,000 | Ladbrokes Coral fined after customer lost £98,000 |
(about 7 hours later) | |
The owner of Ladbrokes Coral has been fined £5.9m for not protecting vulnerable customers and for failings in its anti-money laundering measures. | The owner of Ladbrokes Coral has been fined £5.9m for not protecting vulnerable customers and for failings in its anti-money laundering measures. |
The Gambling Commission says that over a three-year period, Ladbrokes and Coral failed to put effective safeguards in place to "prevent consumers suffering gambling harm". | The Gambling Commission says that over a three-year period, Ladbrokes and Coral failed to put effective safeguards in place to "prevent consumers suffering gambling harm". |
One customer lost £98,000 and had asked the company to stop sending promotions. | One customer lost £98,000 and had asked the company to stop sending promotions. |
But the firm failed to carry out "social responsibility interactions". | But the firm failed to carry out "social responsibility interactions". |
The Gambling Commission said the problems occurred between November 2014 and October 2017, after which GVC Holdings bought Ladbrokes Coral in March 2018. | The Gambling Commission said the problems occurred between November 2014 and October 2017, after which GVC Holdings bought Ladbrokes Coral in March 2018. |
GVC Holdings will pay £4.8m and divest £1.1m "gained from customers as a result of its failings". | GVC Holdings will pay £4.8m and divest £1.1m "gained from customers as a result of its failings". |
In one instance, a Ladbrokes customer had 460 attempted deposits into their gambling account declined. However, they were still able to lose £98,000 over two and a half years. | In one instance, a Ladbrokes customer had 460 attempted deposits into their gambling account declined. However, they were still able to lose £98,000 over two and a half years. |
The commission also highlighted a Coral customer who spent £1.5m over nearly three years, during which time they logged onto their account an average 10 times a day for one month and lost £64,000 in one four week period. | The commission also highlighted a Coral customer who spent £1.5m over nearly three years, during which time they logged onto their account an average 10 times a day for one month and lost £64,000 in one four week period. |
It said Coral "did not ask the customer to evidence their source of funds and could not provide evidence of any social responsibility interactions being carried out". | It said Coral "did not ask the customer to evidence their source of funds and could not provide evidence of any social responsibility interactions being carried out". |
'Regrets' | 'Regrets' |
Richard Watson, executive director of the Gambling Commission, said: "These were systemic failings at a large operator which resulted in consumers being harmed and stolen money flowing though the business and this is unacceptable." | Richard Watson, executive director of the Gambling Commission, said: "These were systemic failings at a large operator which resulted in consumers being harmed and stolen money flowing though the business and this is unacceptable." |
GVC said it "acknowledges and regrets" that certain legacy systems and processes in place at Ladbrokes and Coral "did not adequately meet the regulatory requirements". | GVC said it "acknowledges and regrets" that certain legacy systems and processes in place at Ladbrokes and Coral "did not adequately meet the regulatory requirements". |
"These historical failings were unacceptable and since the acquisition, I have overseen a systematic review of the enlarged group's player protection procedures and the individuals responsible for these problems have exited the business," added GVC chief executive Kenneth Alexander. | "These historical failings were unacceptable and since the acquisition, I have overseen a systematic review of the enlarged group's player protection procedures and the individuals responsible for these problems have exited the business," added GVC chief executive Kenneth Alexander. |
"I am confident that we now have in place a robust and industry-leading approach to player protection." | "I am confident that we now have in place a robust and industry-leading approach to player protection." |
Shares in GVC Holdings rose 0.59% to 611.37p. | Shares in GVC Holdings rose 0.59% to 611.37p. |
As well as the Ladbrokes and Coral brands GVC also owns gambling outlets bwin, Crystalbet, Eurobet, Neds and Sportingbet. | As well as the Ladbrokes and Coral brands GVC also owns gambling outlets bwin, Crystalbet, Eurobet, Neds and Sportingbet. |
Its games brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. | Its games brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. |
The penalty for Ladbrokes Coral Group is one of the biggest imposed by the gambling watchdog. | |
UK gambling firm 888 had to pay a record £7.8m in August 2017 as a result of serious failings in its handling of vulnerable customers. | |
Online gambling business Daub Alderney received a £7.1m penalty in November 2018 for failing to follow rules aimed at preventing money laundering and protecting vulnerable consumers. | |
William Hill had to pay around £6m for systemic senior management failure to protect consumers and prevent money laundering in a penalty package in February 2018 |