BETTING firm Ladbrokes Coral has been fined £5.9million for failing to protect vulnerable customers after one lost £98,000.
An investigation by the Gambling Commission found that between November 2014 and October 2017 Ladbrokes and Coral didn’t do enough to “protect customers from gambling harm”.
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It said that the firm didn’t show enough evidence of “social responsibility” and failed to provide effective anti-money laundering measures.
One example that featured in the investigation is of a customer who lost £98,000 over two-and-a-half years.
Despite having 460 attempted deposits into their gambling account declined by their bank, and even asking the company to stop sending promotions, the firm didn’t act on the information.
The betting company also failed to contact a customer who’d spent £1.5million over nearly three years.
Even though they showed signs of addiction after logging in to their accounts 10 times a day on average, the company didn’t do anything to help.
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The Gambling Commission also found that due to the firm’s “inadequate” and “inefficient” anti-money laundering process, it wasn’t able to effectively identify customers who may be in trouble.
As a result, £1.1million of the fine will be handed back to seven customers who lost money to fraudsters.
The remaining £4.8million will go towards the Gambling Commission’s National Strategy to Reduce Gambling Harms scheme.
The company behind Ladbrokes Coral Group, GVC, who bought the bookmaker in 2018, has also promised to overhaul its safeguarding process, as well as retrain staff to identify vulnerable bettors.
Richard Watson, Commission Executive Director, said: “Decision makers at gambling businesses need to invest in the welfare of their customers and the integrity of money being gambled with.
“These were systemic failings at a large operator which resulted in consumers being harmed and stolen money flowing though the business and this is unacceptable.”
GVC boss, Kenneth Alexander said: “These historical failings were unacceptable and since the acquisition, I have overseen a systematic review of the enlarged Group’s player protection procedures and the individuals responsible for these problems have exited the business.
“I am confident that, we now have in place a robust and industry leading approach to player protection.”
Earlier this month, we reported how William Hill is closing 700 betting shops putting 4,500 jobs at risk.
In April, Ladbrokes also said it plans to close up to 1,000 branches this year putting 5,000 jobs at risk.
Online gamblers as set to feel the pinch from October 1, when a remote gaming duty will rise by 6 per cent.
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