Foreign
BRITISH gambling group, Entain is to pay 17 million pounds for social responsibility and anti-money laundering failures in the Gambling Commission’s largest ever enforcement action.
Entain Group will pay 14 million pounds for failures at its online business LC International Limited, which ran 13 websites including ladbrokes.com, coral.co.uk and foxybingo.com.
It would also pay 3 million pounds for failures at its Ladbrokes Betting & Gaming Limited operation which runs 2,746 gambling premises across Britain.
All 17 million pounds would be directed towards socially responsible purposes as part of a regulatory settlement, the regulator said.
Additional licence conditions would also ensure a business board member oversees an improvement plan.
That, a third-party audit to review its compliance with licence conditions and codes of practice took place within 12 months.
Gambling Commission chief executive Andrew Rhodes said: “Our investigation revealed serious failures that have resulted in the largest enforcement outcome to date.
“There are completely unacceptable anti-money laundering and safer gambling failures.
“Operators are reminded they must never place commercial considerations over compliance.
“This is the second time this operator has fallen foul of rules in place to make gambling safer and crime-free.’’
They should be aware that we would be monitoring them very carefully and further serious breaches would make the removal of their licences.
“Licences to operate a very real possibility. We expect better and consumers deserve better.’’
The social responsibility failures included being slow or failing to minimise certain customers’ risk of harm associated with gambling.
The regulator said the operator conducted just one chat interaction with an online customer who spent extended periods gambling overnight during an 18-month period in which they deposited 230,845 pounds.
Anti-money laundering failures included allowing online customers to deposit large amounts without carrying out a sufficient source of funds checks.
One consumer is allowed to deposit 742,000 pounds in 14 months without appropriate source-of-funds checks.
Another, who was known to live in social housing, was allowed to deposit 186,000 pounds in six months without sufficient checks.
“Entain has entered into the regulatory settlement with the commission in order to bring the matter to a close and avoid further costly and protracted legal proceedings.
“Entain accepts that certain legacy systems and processes supporting the operations of its British business during 2019 and 2020 were not in line with the evolving regulatory expectations.
The expectations of the commission in respect to aspects of social responsibility and anti-money laundering (AML) safeguards.
However, the group also noted the commission’s statement that it found no evidence whatsoever of criminal spending within Etain’s operations.
“The issues raised by the commission relate to the period between December 2019 and October 2020, which pre-dates the many changes in the area of safer gambling and AML that Entain has introduced.’’
The enforcement case came amid delays to the release of the long-awaited gambling White Paper, thought to be postponed again until after a new prime minister takes office.
Restrictions on the industry were widely expected to be announced last month as part of the review of the 2005 Gambling Act amid concerns that regulations require changes to accommodate the growth of online betting.
But advisers to Prime Minister Boris Johnson reportedly concluded that it could not be published until a new leader of the Conservative Party was elected to replace him as prime minister. (dpa/NAN)
A.I
Tags: Boris Johnson Britain’s Entain
