UK Bookmaker Ladbrokes Coral has been slapped a £5.9m fine for being lax in ensuring consumer protection and especially those who are the most vulnerable. The betting company has also been penalized for not doing enough to control money laundering.
The UK gambling commission has fined the bookmaker £5.9m and has said that Ladbrokes and Coral failed to “prevent consumers suffering gambling harm” over a three-year period.
In one such case where the company was found complicit in not protecting the vulnerable customers, a gambler lost £98,000 after asking the company to stop sending promotions and having 460 attempted deposits into their account declined.
The UKGC has said that Ladbrokes failed to carry out “social responsibility interactions”.
The company has been fined for such failures to ensure the standards of consumer protection which occurred between November 2014 and October 2017.
GVC Holdings, the company that recently purchased Ladbrokes Coral will pay £4.8m and divest £1.1m “gained from customers as a result of its failings”.
Richard Watson, executive director of the Gambling Commission, said: “These were systemic failings at a large operator which resulted in consumers being harmed and stolen money flowing through the business and this is unacceptable.”
A statement from the Gambling Commission said Coral “did not ask the customer to evidence their source of funds and could not provide evidence of any social responsibility interactions being carried out”.
Last month GVC Holdings, which owns and operates Ladbrokes and Coral shops in the UK said that they are planning to close 900 of their betting shops across the UK.
Betting operators and bookmakers are facing declining revenue from operations in the domestic market ; as such bookmakers in the UK are planning to shut shops.