UKGC Ordered Entain to Pay £17 Million For Regulatory Failures

The UK Gambling Commission officially ordered Entain to pay £17 million for social responsibility and anti-money laundering breaches at both online and brick and mortar businesses.

Entain Group is obliged to cover £14 million for omissions at its web business LC International Limited which conducts 13 websites involving ladbrokes .com, coral.co.uk, and foxybingo .com.

The remaining £3 million will cover breaches at its Ladbrokes Betting & Gaming Limited business which holds 2,746 gambling premises in Great Britain.

The total sum is intended for the socially responsible objectives according to the regulatory settlement.

The decision of the UKGC also sets additional license conditions, ensuring that a business board member monitors an improvement plan. This will be complemented by an audit review to check the compliance with the Licensee Conditions and Codes of Practice over 12 months.

Commenting on their decision, Andrew Rhodes, Gambling Commission chief executive, said:

“Our investigation revealed serious failures that have resulted in the largest enforcement outcome to date.

“There were completely unacceptable anti-money laundering and safer gambling failures. Operators are reminded they must never place commercial considerations over compliance.

According to his words, this is the second time this brand has broken the rules to keep gambling safer and crime free. They have to be aware that the Commission will be supervising them carefully and any serious breaches in the future will result in the removal of their license to operate. The Commission expects better and users deserve better.

This is not the first time that UKGC issues the fine to operators. The same happened to 888 UK Limited for AML and Social Responsibility Omissions.

When it comes to social responsibility failures, Entain made the following:

• was slow to interact or not interacted with customers in a way to minimize their risk of gambling harm
• allowing users subject to inquiries and limitations to open several accounts with the Licensee’s alternative brands
• one player didn’t go through for a safer gambling review by the shop or support office teams even if he staked £29,372 and stayed without £11,345 in only one month
• the company oversaw the failure of local staff and area managers to solve potential concerns sooner in time

As for the anti-money laundering failures, they included:

• failing to conduct a risk assessment of their online business used for money laundering and terrorist financing
• allowing online players to deposit big amounts without performing sufficient SOF checks
• missing to perform improved customer due diligence reviews sooner in time

Source: “UKGC: Entain to pay £17 million for regulatory failures”. European Gaming. August 18, 2022.