Entain to pay £17 million for liability and AML breaches

  • Wednesday 17 August, 2022
Entain to pay £17 million for liability and AML breaches

The UK’s Gambling Commission has found Entain in violation of social responsibility and anti fraud regulations and has demanded a £17 million fine.

The bookmaking corporation Entain has recently been sanctioned 17 million pounds by the UK’s Gambling Commission. The commission cited a number of social liability and anti racketeering shortcomings recorded at the end of 2020 as the reason for the fine.

The payment will be split between two subsidiaries of the company. LC International ltd., which operates over a dozen online gambling websites, will receive the majority of the penalty at 14 million pounds, while the group’s retail gambling establishment, Ladbrokes, will be paying 3 million pounds.

Furthermore, the firm will be receiving special licensing conditions to ensure the completion of an amelioration plan. The scheme will be monitored by a board member of the business and by a third-party auditing organization.

Exploring the commission’s rationale for the amercement, Entain allowed at-risk customers to spend exorbitant amounts of money without any surveys. In one extreme case, a player who deposited over 230k pounds over a one and a half year period and gambled for extended periods, mainly at night, got only one interaction over online chat.

In other cases, the company let users that were blocked from one of its brands to open profiles with other subsidiaries. In another extreme example, a user who went through 60k pounds in a year got blocked at Coral for not having a valid source of funds, however they were able to not only register with Ladbrokes online, but also expend 30k pounds in a single day.

Lastly, the GC also found some proof that the corporation was not conducting risk estimation of its transactions thoroughly enough. These violations included lacking fraudulent transaction checks, as well as failed inspections of customers’ sources of funds.

Entain has already responded to the commission’s document, stating that it has improved since the violations took place two years ago, and has placed a number of safety features to prevent any of them from happening again. The firm mentioned their AI accelerated Advanced Responsibility and Care system, which was launched last year, as one of the biggest steps they have taken in the right direction.

The business’s announcement read:

“The initial [deployments] of ARC in the UK have [demonstrated] a risk [evaluation precision] of over 80%, a 120% [jump] in the usage of safe gambling [implements] by [the most vulnerable players], and a 30% reduction in [consumers] increasing their risk [tolerance].”

Furthermore, they reminded about the Advanced Safer Gambling Standard award the company won this year, as another metric of progress towards a more responsible future.