Ladbrokes Coral fined £5.9 million for compliance failings
Landbrokes Coral is to pay £ 5.9m fine to the Gaming Commission over “systematic failings” to protect problem gamblers who lost hundreds of thousands of pounds. The company is being penalized for its lack of checks on money laundering and problem-gaming.
Ladbrokes Coral forms part of the GVC gaming group, based in Isle of Man, which group agreed to the regulatory settlement with the Gambling Commission in relation to historic compliance failings that took place within the Ladbrokes Coral business before its takeover by the Group.
The failures include incidents where Coral neglected to ask one customer who lost £1.5m over three years about their source of funds resulting in lack of checks to deter money-laundering among customers.
Others involve failure to interact with customers suffering from gambling addiction despite clear sings of problem gambling such as logging into their account 10 times a day and losing £64,000 in one month alone.
This is one of the highest fines ever imposed by the Gambling Commission and more may happen. As part of the settlement, £4.8m will go to initiatives to prevent problem gambling and £1.1m to victims of crimes used to fund gambling.
GVC stated in an official statement published on their website that since the period investigated by their regulator it has improved its safer gambling processes to ensure it was “fully compliant with its licensing obligations”. It had increased the number of staff in its compliance department fivefold since 2016 and “materially increased” its checks on the origins of players’ funds.