This week the UK Gambling Commission dropped the hammer on operator Entain, ordering the company to pay a record-setting £17 million fine after the regulator discovered multiple money laundering and social responsibility failings across the company's entire business.
The company will pay out £14 million from LC International Limited, which is the Entain umbrella that runs Ladbrokes, Foxy Bingo, and Coral. £3 million will be paid from Ladbrokes Betting & Gaming Limited, which operates land betting shops throughout the UK. The funds will go toward socially responsible purposes.
Entain will also have to come up with a new business plan to address its regulatory shortcomings. A third party will also audity the company's policies and procedures every year to ensure that Entain is being compliant.
The UKGC found that there were multiple anti-money laundering policies related to the online operations of Entain. There were also multiple deficiencies in responsible gaming policies. Chief among these violations were that saw customers with account restrictions able to open accounts at other Entain brands without restriction.
Most of the violations subject to the fine took place between December 2019 and October 2020.
On the retail side, violations also occurred between December 2019 and October 2020.
The violations were also related to anti-money laundering violations, as Ladbrokes customers were found to be able to deposit large amounts of money after losing huge sums. The company was found to have not conducted the due diligence checks required to keep this from happening.
For their part, Entain acknowledged the lapses and agreed to pay the sum. The company has also been put on notice that future transgressions could result in Entain losing its ability to provide services in the country.
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