32Red Hit With £2m Fine For Failure To Protect Problem Gambler
June 20, 2018
Online casino brand 32Red has been hit with a £2m penalty by regulators for failing to protect a single problem gambler on the site between November 2014 and April 2017.
In total, an investigation by the Gambling Commission identified 22 incidents that should have indicated to the casino that the customer was a problem gambler.
Richard Watson, the commission’s executive director explained “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.”
The customer should have been investigated by 32Red back in August 2016, but instead, only had their activities checked in January 2017, when a win of more than £1m was immediately gambled again.
In total, the customer is said to have deposited a total of £758,000 without undergoing any money laundering or social responsibility checks.
The penalty, therefore, was issued as a result of the company failing to fulfil its legal responsibilities towards the customer.
The £2m penalty includes £709,046 divestment of the financial gain, a £1.3m payment to be used on the National Responsible Gambling Strategy, intended to tackle problem gambling, and £15,000 towards the cost of the investigation.
When questioned about the source of the customers’ funds, the Gambling Commission spokesman said: “The source of the customer’s wealth was not known to 32Red because they failed to fulfil their anti-money laundering obligations. We cannot comment on any other proceedings that may be active.”
The 32Red penalty comes a matter of months after 888.com were hit with a record fine of £7.8m for failing to protect customers.
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Author: Will H.
Will has been a part of the nitty-gritty world of gambling for over 10 years now in one shape or another, and though he mainly works in the background at Casino Circle, his vast experience and insight is always fascinating to read and listen to.