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the News desk.
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| Online casino firm 888 is fined record £7.8m for
not protecting problem gamblers |
31/08/2017 |
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 Editor |
• Watchdog fines
online bookmaker for failures in protecting problem gamblers, including one who
staked more than £1.3m
The online
bookmaker 888 has been fined a record £7.8m for “serious
failings” in its handling of vulnerable customers.
The action from
the Gambling Commission follows the discovery of “significant flaws”
in 888’s social responsibility processes, which aim to protect consumers
from gambling-related harm.
An investigation by the commission found
that, due to a technical failure in 888’s systems, more than 7,000
customers who had chosen to self-exclude were still able to access their
accounts.
It meant customers were able to deposit a total of
£3.5m into their accounts and continue to gamble for more than 13 months.
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The commission said
888’s procedures were “not robust enough” and failed to protect
potentially vulnerable customers.
888 also failed to “recognise
visible signs of problem gambling behaviour” displayed by an individual
customer, which was so significant that it resulted in criminal activity, the
commission said.
The customer staked more than £1.3m, including
£55,000 stolen from their employer.
The commission said that
during a 13-month gambling binge, the customer placed a large number of bets,
gambling on average for three to four hours a day. .
“The lack of
interaction with the customer, given the frequency, duration and sums of money
involved in the gambling, raised serious concerns about 888’s safeguarding
of customers at risk of gambling harm,” it added.
The Gambling
Commission chief executive, Sarah Harrison, said: “Safeguarding consumers
is not optional. This penalty package of just under £8m reflects the
seriousness of 888’s failings to protect vulnerable
customers.
“The 888 sanction package will ensure those affected
don’t lose out, that the operator pays the price for its failings via a
sum that will go to tackling gambling-related harm, and that independent
assurance will be given to see that lessons are learned.”
The
£7.8m includes repayment of the £3.5m deposits made by
self-excluded customers and compensation of £62,000 to the employer from
whom money was stolen.
A further £4.25m will be paid to a
socially responsible cause to invest in measures to tackle gambling-related
harm.
The commission has also ordered an independent audit of
888’s processes relating to customer protection.
Sarah Harrison,
chief executive at the Gambling Commission, said the penalty would ensure that
"lessons are learnt".
"There are around two million people now in
Britain who either are problem gamblers or are at risk of problem gambling," Ms
Harrison said. "Companies are beginning to put different practices in place to
identify people right up front, but more needs to be done. We need to go
further and we need to go faster." |
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