The UK Gambling Commission has issued fines totaling £7.1 million (€8 million) to 32Red Limited and Platinum Gaming Limited, both of which are owned by Kindred Group.
According to the commission’s announcement, the two online gambling operators were found to have breached licensing conditions with regards to social responsibility and anti-money laundering (AML) protocols.
32Red Limited, which runs 32red.com, has been fined £4,195,655 (€4,747,363)
Platinum Gaming Limited, which runs unibet.co.uk, has been fined £2,937,599 (€3,323,879)
Both operators have also been issued with an official warning.
Social responsibility failures included:
- 32Red customers were allowed prolonged gambling sessions with no interaction from customer support.
- 32Red failed to identify and protect potential problem gamblers, with one customer allowed to deposit £43,000 and lose £36,000 within seven days.
- 32Red customer interactions lacked depth and probing, with the operator settling for customer assurances.
- Platinum Gaming failed to identify separate accounts held by the same individual. Self-excluded or blocked customers from 32Red were allowed to register on Unibet.
- Platinum Gaming failed to communicate with customers who exhibited signs of problem gambling.
Anti-money laundering failures included:
- 32Red failed to thoroughly implement AML protocols.
- Financial triggers for AML reviews at 32Red were too high allowing high frequency large deposits from customers.
- 32Red were not restricted from depositing and gambling despite not yet providing proof of source of funds.
- 32 Red assumed that funds coming through Financial Conduct Authority (FCA) regulated firms reduced proceeds of crime risks.
- 32Red customer allowed to gamble £16,280 in total and lose £8,321 after source of funds request deadline had passed.
- Platinum Gaming’s policies, procedures and controls in relation to AML were not appropriate.
- Platinum Gaming failed to ensure that policies, procedures and controls were kept under review.
Kay Roberts, executive director of the Gambling Commission said:
“These failures highlight clearly that both operators failed to interact with customers in a way which minimises the risk of them experiencing harms associated with gambling. Our investigations also showed that policies and procedures were overlooked, both around customer accounts and anti-money laundering practices. Ultimately, it is an example which all gambling operators should take notice of to ensure they protect their customers at all times.”
This brings the total fines for 2023 to more than £23 million (€26 million) while the UKGC’s fines make up £14.6 million (€15.8 million) of that figure.
According to industry fines tracker website GamblingIndustryFines.com, gambling industry fines in 2022 came to €251,712,034 / $269,532,490 – a significant increase of 443.9% compared to 2021’s total of €44,753,969 / $48,642,992.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
