Ladbrokes Coral hit with £5.9m fine over ‘systemic failings’
● Firm failed to help vulnerable punters and avoid money laundering
Gambling firm Ladbrokes Coral has been hit with a £5.9 million fine for failing to protect vulnerable customers and insure against money laundering.
The Gambling Commission said the chain had “systemic failings” and warned that investigations are continuing into the actions of personal management licence holders at the firm.
It found Ladbrokes Coral did not carry out any social responsibility interactions with a customer who lost £98,000 over two-and-a-half years, had 460 deposits into their account declined, and even asked the operator to stop sending promotions.
Meanwhile, it failed to ask another customer who spent £1.5m over a period of two years and ten months, to evidence their source of funds. It could also not provide evidence of any social responsibility interactions being carried out with that customer.
An investigation by the Gambling Commission found that between November 2014 and October 2017, Ladbrokes and Coral failed to put in place effective safeguards to prevent consumers suffering gambling harm and against money laundering, with this failing continuing after their merger as the Ladbrokes Coral Group.
Ladbrokes this week announced it is to launch a Scottish Premiership version of fantasy football with the SPFL.
Richard Watson, Commission executive director, said: “Decision-makersatgambling businesses need to invest in the welfare of their customers and the integrity of money being gambled with.
“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.”
As part of the settlement the Ladbrokes Coral Group’s new owners, GVC, will pay £4.8m in lieu of a financial penalty and will divest £1.1m gained from customers as a result of its failings. GVC will also review the top 50 customers for the years 2015-2017 to consider whether any further failings can be identified.
The commission said GVC had committed to making a number of improvements.
GVC chief executive Kenneth Alexander said: “I am confident that, we now have in place a robust and industry-leading approach to player protection.”