The online casino company 32Red has been fined £2m for missing 22 opportunities to help a problem gambler, offering the customer VIP status and free bonuses instead of advice.
The Gambling Commission said 32Red should have intervened after the customer, who deposited £758,000 over more than two years, admitted to staff they had spent too much, displayed frustration and kept gambling to “chase” their losses.
Under the terms of licences to operate in the UK, awarded and monitored by the industry regulator, companies must intervene if they believe a customer’s behaviour indicates addiction.
The regulator also found 32Red failed to check the customer could afford their bets, despite licence conditions demanding operators investigate if it appears anyone is spending beyond their means.
The transgressions were aggravated by the fact that 32Red had not learned from a string of similar incidents that resulted in gambling companies being fined.
The commission’s executive director, Richard Watson, said: “Instead of checking on the welfare of a customer displaying problem gambling behaviour, 32Red encouraged the customer to gamble more. This is the exact opposite of what they are supposed to be doing.
“Operators must take action when they spot signs of problem gambling and should be carefully reviewing all the customers they are having a high level of contact with.”
32Red, which has products including a slots game featuring the TV presenters Ant and Dec, gave the customer VIP status in February 2013, according to the commission’s ruling.
Over more than two years, there were 22 occasions on which the customer made comments the regulator said “could indicate problems with gambling”.
The company only reviewed the customer’s account after they won a seven-figure sum and immediately staked the winnings on a new bet. By the time their account was suspended, they had deposited £758,000.
32Red also breached rules designed to prevent money laundering, the commission said, because it did not check the source of the customer’s wealth.
The customer’s monthly net salary was £2,150, but their average monthly deposit was £45,000, the commission said, adding that 32Red had accepted evidence of the customer’s wealth that was “not credible”.
The company, part of the Swedish-owned but Malta-based Kindred Group, accepted the penalty and has made changes to its procedures.
A spokesperson said: “Kindred is working hard across all teams and brands to consolidate and improve business processes, making use of best practices from all areas of the business.
“As a company putting sustainability at the very core of its business strategy, Kindred remains committed to ensuring customers can enjoy gambling in a safe and secure environment.”
Source: The Guardian
