Sanctions, Suspension of Licenses and Fines as the UKGC Strike Again

Systematic failing has led to the departure of three senior managers at Caesars Entertainment and the cherry on the cake is a hefty £13m fine! Not only have the UKGC ordered the gambling operator to cough up, but they’ll also have to implement a series of improvements in the social responsibility department.

A “catalogue of social responsibility, money laundering and customer interaction failures including those involving VIPs” were uncovered in the investigation of the land-based gambling operator (who has a total of 11 casinos dotted around the UK), but we’re being told the magnifying glass hasn’t been put away yet! The regulator is still looking into the personal management licence holders.

The failing came from a period between January 2016 and December 2018 when the company took the wrong decisions, including:

• Inadequate interaction with a previously self-excluded customer, who lost over £240K in 13-months
• Inadequate interaction with a customer who lost £323K in 12-months, even though they showed signs of having a gambling problem – the 30 sessions of more than 5-hours playing was more than just a hint of what was going on.
• A customer allowed to lose £18K in a year despite identifying herself as a self-employed nanny and detailing to staff that she had spent all her savings and was borrowing and using an overdraft to fund gambling activities.
• Inadequate interaction with, and source of funds checks (SOF) on a customer who identified as a retired postman and lost £15K in 44 days.

And the list keeps on growing! Money laundering failings include a waitress’ who deposited £87K and of that lost £15K in 12-months and a customer who added £3.5million and lost £1.6m over a period of just 3-months.

Play by the Rules or Else!

Neil McArthur, Chief Executive of the Gambling Commission, said: “We have published this case at this time because it’s vitally important that the lessons are factored into the work the industry is currently doing to address poor practices of VIP management in which we must see rapid progress made.”

This takes the gambling industry to £27million in packages and sees…

…Caesars Entertainment joining Betway and Mr Green on the penalised list. The regulator couldn’t be clearer on what they do with operators who fail to abide by the rules;

“We are absolutely clear about our expectations of operators - whatever type of gambling they offer they must know their customers. They must interact with them and check what they can afford to gamble with - stepping in when they see signs of harm. Consumer safety is non-negotiable,” said McArthur.

And in other news, Dynamic, trading as Prophet and Sportito have had their gambling licenses suspended due to a failure to participate in GAMSTOP

McArthur added: “We have made it clear to operators that we are ready and willing to use our powers to protect consumers, as this action demonstrates.

Self-exclusion is an important tool to protect vulnerable consumers…

…which is why we made it compulsory for all online operators to be signed up to GAMSTOP by 31 March. We took action because the operators had not complied by the deadline, which placed vulnerable consumers at risk.

One of the suspensions has now been lifted as the operator is now compliant. Our investigations into both operators continue.”

Source: “Systemic failings at Caesars Entertainment leads to the departure of three senior managers and sanctions of £13m". Gambling Commission. April 2, 2020.