Ladbrokes Coral-owner GVC hit with £5.9m fine over safeguarding failures
Ladbrokes Coral’s owner GVC has been fined £5.9m by the Gambling Commission after it found the bookmaker failed to put in measures to prevent money laundering and customers coming to harm between 2014 and 2017.
GVC, which acquired the bookmaker in 2018, has been ordered to make a series of changes to its business and pay a £5.9m fine while investigations into the actions of personal management licence holders continues.
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The Commission said Ladbrokes failed to carry out any social responsibility interactions with a customer who lost £98,000 over two-and-a-half years, had 460 attempted deposits into their account declined and had asked the bookmaker to stop sending promotions.
Coral failed to ask a customer who spent £1.5m over a nearly three-year period what the source of their funds was and also could not provide evidence of any social responsibility interactions being carried out.
Richard Watson, Commission executive director, said: “Decision makers at gambling 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 through the business and this is unacceptable.”
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As part of the settlement, 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 its top 50 customers for the years 2015-17 to consider whether any other failings can be identified.
The company has committed to making a number of improvements to the business including overhauling its responsible gaming and customer interaction processes, retraining staff and hiring new staff.
GVC chief executive, Kenneth Alexander, said: “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.
“I am confident that, we now have in place a robust and industry leading approach to player protection.”