Lessons to be learned – Gambling Commission

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Lessons to be learned… via Gambling Commission


Betfred will pay more than £800,000 in compensation and in contribution towards socially responsible causes as part of a regulatory settlement following a licence review.

This payment follows failures by the operator in its anti-money laundering and social responsibility policies.

The Gambling Commission’s investigation follows a court case that resulted in a Betfred customer being jailed for three years and four months after admitting to stealing from his employer. A significant proportion of the stolen money was spent with Betfred.

Under the terms of the settlement, £443,000 will be paid to the victims of the criminal activities. A further £344,500 will be paid, in lieu of a financial penalty, to socially responsible causes, agreed with the Commission. Betfred will also meet the Commission’s investigation costs.

In addition, under the settlement, Betfred must conduct an independent third party review and audit of its anti-money laundering and social responsibility policies and procedures. This will include customer due diligence, enhanced due diligence and on-going monitoring practices.

Richard Watson, Programme Director at the Commission, said: “We identified a number of weaknesses in the anti-money laundering and social responsibility controls used by Betfred. The penalty package of over £800,000 reflects these failures.

“The Commission has now concluded a wide range of cases over the last 10 months leading to around £3.75million in penalty packages. The outcomes and findings in these cases provide a clear signal to operators of the need to learn the lessons from these for social responsibility and money laundering controls, or risk facing tougher sanctions.”

All operators are advised to read Betfred.com: voluntary settlement following a licence review – public statement for further details.

The Commission has begun a review of its enforcement policies and practices which includes plans to engage operators and stakeholders in the autumn.

See original story here

Betfred to pay over £800, 000 following licence review (2016) Available at: http://www.gamblingcommission.gov.uk/Press/2016/Betfred-to-pay-over-800000-following-licence-review.aspx (Accessed: 28 June 2016).


Lessons to be learned from failures at Gala Coral Group

The Commission is calling on gambling operators to learn lessons from its investigations into failings at the Gala Coral Group Ltd.

As part of a regulatory settlement, which has concluded the Commission’s investigations, Gala Coral Group Ltd has agreed to forfeit more than £846,000 and take steps to improve its anti-money laundering and social responsibility processes.

The investigation related to the way two of Gala Coral Group Ltd’s divisions (Coral Racing Limited and Gala Interactive) handled its relationship with a man who was jailed for three years after admitting to stealing £800,000 from a vulnerable adult.

The man had been a retail customer of Gala Coral Group since 2012 and was an online customer between January 2014 and January 2015.

As part of the settlement, Gala Coral has agreed to pay £846,600 to the man’s victim as this was the total amount he lost through gambling with the operator.

All operators are advised to read Gala Coral Group: Failures in anti-money laundering and social responsibility controls public statement for further details and lessons to be learned.

Richard Watson, Programme Director at the Commission, said: “We expect the industry will learn the lessons from this case, as it is their responsibility to keep crime out of gambling and protect vulnerable people from harm.“

He added: “We know that Gala Coral have reflected heavily on this case and have assured us of actions they have taken to address the failings. Operators must proactively monitor customers to keep gambling safe and free from crime”.

See original story here

Lessons to be learned from failures at gala coral group (2016) Available at: http://www.gamblingcommission.gov.uk/Press/2016/Lessons-to-be-learned-from-failures-at-Gala-Coral-Group.aspx (Accessed: 28 June 2016).


Lessons to be learned from failures at Paddy Power Group

An operator is set to share lessons with the wider industry and contribute £280,000 to socially responsible causes after failing to keep crime out of gambling and protect vulnerable people.

Paddy Power has also agreed to improve its anti-money laundering and social responsibility processes following a Gambling Commission investigation.

The failings relate to the way Paddy Power handled relationships with two customers at one of its betting shops, and with one of its online customers who was later convicted of serious criminal offences.

All operators are advised to read Paddy Power Group: Failures in anti-money laundering (remote and non-remote) and social responsibility controls (non-remote)for further details and lessons to be learned.

Richard Watson, Programme Director at the Commission said: “We expect the industry will learn the lessons from this case – it is their duty to keep crime out of gambling and protect vulnerable people from harm. If operators don’t implement processes and policies aimed at doing this then they risk losing their operating licence. Paddy Power failed in its dealing with three customers and is now facing the consequences of these actions in a very public way.”

Details of how Paddy Power failed to meet its anti-money laundering and social responsibility duties are included in the Commission’s public statement.

See original story

Lessons to be learned from failures at Paddy power group (2016) Available at: http://www.gamblingcommission.gov.uk/Press/2016/Lessons-to-be-learned-from-failures-at-Paddy-Power-Group.aspx (Accessed: 28 June 2016).


Lessons to be learned from money laundering failures at Caesars Casinos

An international casino operator has agreed to improve their anti-money laundering processes, share lessons with the wider industry, and spend £845,000 on socially responsible purposes after failing to do enough to prevent money laundering.

The failures occurred at two of Caesars casinos in London – the Playboy Club London and the Empire Casino.  All operators are advised to read Caesars Entertainment (UK) Ltd:Failures in anti-money laundering controls public statement for further details and lessons to be learned.

Nick Tofiluk, Executive Director at the Gambling Commission, said: “We hope the industry will learn the lessons from this case – it is their duty to put processes and policies in place to prevent money-laundering. If operators don’t put such processes and policies in place then they risk losing their operating licence.”

Voluntary settlements are a way of ensuring gambling is fair and open, crime free and children and the vulnerable are protected without conducting formal licence reviews.*4

Caesars failed to manage the risk of money laundering in a number areas and these failures are covered in the Commission’s public statement.

See original story

Lessons to be learned from money laundering failures at Caesars casinos (2015) Available at: http://www.gamblingcommission.gov.uk/Press/News-archive/2015/Lessons-to-be-learned-from-money-laundering-failures-at-Caesars-casinos.aspx (Accessed: 28 June 2016).