Betting company hit by £8million fine after letting addict lose £1.3m
‘Serious concerns about safeguarding’
AN online betting firm has been fined a record £7.8million for failing to protect customers with gambling addictions.
In a case that heaps further shame on the industry, the Gambling Commission said a ‘technical failure’ in 888’s systems allowed more than 7,000 vulnerable adults who had asked to be banned to place bets.
They had ‘self- excluded’ themselves from gambling on casino, poker and sports but were still able to play online bingo. The watchdog said the problem went undetected for a ‘ prolonged period’, allowing these customers to deposit £3.5million in their accounts and gamble £50.6million in recycled winnings over 13 months.
But Gibraltar-based 888 also ‘failed to recognise visible signs of problem gambling behaviour’ by one customer who did not self-exclude herself.
Although the commission did not name her, the gambler can be identified as Tracey Abbott, 47, who staked more than £1.3million during a 13month spree.
This included £55,000 stolen from her employer, the Woodside Surgery in Loftus, Cleveland. During this period the mother of three gambled four hours a day on average, placing more than 850,000 bets on internet slot machines and other games.
The commission said the ‘lack of interaction with the customer, given the frequency, duration and sums of money involved in gambling, raised serious concerns about 888’s safeguarding of customers at risk of gambling harm’.
Abbott, who was jailed for 16 months, has described her gambling addiction as a ‘ monster that gets hold of you – nothing else matters’. The £ 7.8million penalty imposed on 888 dwarfs the previous record of £3million handed to Camelot in December for paying a fraudulently claimed £ 2.5million jackpot to rapist Edward Putman. It includes a fine of £4.25million for breaching its gambling licence and 888 will also have to refund customers the £3.5million they deposited in their accounts.
It will also have to pay compensation of just over £62,000 to the Woodside Surgery.The commis- sion said there were ‘ significant flaws’ in the firm’s social responsibility processes.
Chief executive Sarah Harrison said: ‘Safeguarding consumers is not optional. This penalty package of just under £8million reflects the seriousness of 888’s failings to protect vulnerable customers.’
Marc Etches, of charity GambleAware, said: ‘The fine sends a clear message to the industry that they need to do more to protect people from harm online.’
It comes as the industry faces intense scrutiny over the use of fixed odds betting terminals (FOBTs) – dubbed the ‘ crack cocaine of gambling’ – which controversially allow betting shop customers to stake up to £100 every 20 seconds. Delayed recommendations on whether to curb the use of FOBTs and gambling adverts are due to be published by the Department of Culture, Media and Sport next month.
The commission has estimated more than two million people are either problem gamblers or at risk of addiction.
A spokesman for 888 said: ‘ 888 regrets the historic failings highlighted by the review and accepts the conclusion of the review, which recognises the significant lengths that 888 has gone to in order to address the concerns raised and prevent the issues highlighted from reoccurring.’
Abbott could not be reached for comment.