Share price down for 32Red and Platinum Gaming owner after £7.1m fine for failing gamblers
Online gambling group Kindred Group’s share price slumped more than two per cent at the open this morning, after two of its major operators 32Red and Platinum Gaming were slapped with a £7.1m fine for regulation failures.
The betting firm was wrapped for failures in its social responsibility duties and anti-money laundering measures, according to the Gambling Commission.
Kindred Group, which consists of nine brands including them Unibet, tumbled after the Gambling Commission found the pair to have engaged in behaviour that puts punters at risk of “experiencing harms associated with gambling”.
32 Red’s social responsibility failures included not warning customers that they could be at risk of harm based on their session time and not probing potential problem gamblers about the level they were betting at.
one customer was allowed to deposit £43,000 and lose £36,000 within seven days.
The betting giant was also accused of anti-money laundering failures after one 32Red account was not deposit blocked, in line with its own policy and procedures, allowing a customer to continue depositing – gambling £16,280 in total and losing £8,321 for a further two weeks until their account was eventually blocked.
Both have also received an official warning following a Commission investigation.
Kay Roberts, executive director of the Gambling Commission said: “These failures highlight clearly that both operators failed to interact with customers in a way which minimises the risk of them experiencing harms associated with gambling.
“Our investigations also showed that policies and procedures were overlooked, both around customer accounts and anti-money laundering practices. Ultimately, it is an example which all gambling operators should take notice of to ensure they protect their customers at all times.”
Henrik Tjärnström, chief of Kindred Group, said: “While we accept the outcome, and the acknowledgment that we have already taken significant steps to strengthen our processes, we also recognise that we need to work even harder to ensure a safe and compliant business. “