Brazen gambling firms ‘pay £1m hush money to addicts’
BOOKMAKERS are using gagging orders to avoid millions of pounds of fines for plying gambling addicts with freebies to keep them betting, campaigners have claimed.
The companies have paid up to £1million to addicts and their victims on the condition they do not tell the industry regulator what happened.
It means the most devastating cases are kept secret from the public and the Gambling Commission.
In one shocking case Ladbrokes paid £975,000 to the victims of a problem gambler who had stolen their money to bet – but made them promise not to inform the watchdog.
The addict was showered with thousands of pounds worth of gifts over two years – including hampers, free tickets to football matches and business class flights – to keep him betting.
In another case, seen by the Daily Mail, a police officer was offered £10,000 to settle a claim that he was bombarded with marketing messages after telling Ladbrokes he was addicted to gambling.
But he was furious that the bookmaker insisted on a gagging contract stipulating he should ‘not make a formal complaint to the Gambling Commission’, so he refused to sign it. The gambling code, which is embodied in law, says bookmakers must inform the regulator of any potential code breaches.
The Gambling Commission, which is now investigating both cases, said yesterday: ‘Our rules clearly state that gambling businesses should work with us in an open and co-operative way. This includes disclosing to us anything which we would reasonably be expected to know.’
Iain Duncan Smith, former leader of the Conservative Party, has demanded a full inquiry into the betting industry. He said: ‘This is yet another example of companies playing fast and loose, not just with the law, but also with their moral obligations to vulnerable gamblers.’
Labour Deputy Leader Tom Watson added: ‘The gambling companies are not only encouraging problem gamblers to engage in dangerous play, they are trying to cover it up and stopping regulatory action that could reduce harm.’
As part of their licences, companies must check that customers losing large amounts of money can afford it. They are also not allowed to send marketing material to players after the players inform the firms they are addicted to gambling.
If they break these rules and addicts complain or threaten court action, the bookmakers can offer a cash payout with a list of conditions as a final settlement.
These agreements ensure that the customer will not take further legal action against the company, speak to the Press or open new betting accounts.
But some contain gagging clauses dictating that the gambler can not tell the Gambling Commission about the potential breach of the rules. Many of the biggest UK betting companies use these non-dis-
closure deals, including GVC, which owns Ladbrokes and Coral. Brian Chappell, who co-founded campaign group Justice For Punters, said he has helped former addicts win huge settlements on the basis that the case remains secret.
One claim he dealt with was settled for over £200,000 and was so serious that the recovering addict was left in residential psychiatric care.
The Gambling Commission has hardened its stance in the past couple of years, issuing millions of pounds worth of fines. William Hill was fined £6.2million in February this year, while 888.com was forced to pay £7.8 million in August 2017 for failing to protect vulnerable customers. The Association of British Bookmakers and the Remote Gambling Association have been approached for comment.