Customer data failings fuel £7.1m fines for betting giant

The gambling industry has once again found itself in the gutter after two Kindred Group companies – 32Red and Platinum Gaming – have been slapped with £7.1m in fines for failing to use customer data to identify problem gambling as well as for having inadequate anti-money laundering measures.

Online service 32red.com, whose advertising is fronted by Keith Lemon (pictured), will pay £4,195,655, while Platinum Gaming, which runs unibet.co.uk, will pay £2,937,599.

Both have also received an official warning following a Gambling Commission investigation.

In a damning ruling, the Commission found that 32Red’s data controls were not effective as they failed to identify and protect potential problem gamblers. For example, one customer was allowed to deposit £43,000 and lose £36,000 within seven days.

In fact, customer gambling session data did not prompt early identification of customers who may have been experiencing gambling related harm.

And, although customer interactions at 32Red were being carried out and logged, it was found that they were superficial and lacked depth and probing, with the operator settling for customer assurances that they were comfortable with their level of gambling and that they could afford it.

Meanwhile, Platinum Gaming failed to have effective policies and procedures designed to identify separate accounts held by the same individual. For example, self-excluded or blocked customers were able to register on Platinum Gaming after being blocked or self-excluded on the 32Red platform.

Platinum Gaming also failed to identify and interact with customers who may have been experiencing harms associated with gambling.

Both companies were also found to have made serious failings in anti-money laundering procedures.

32Red, for instance, had inadequate controls that allowed significant levels of gambling to take place within a short space of time without the operator knowing anything about customers’ financial situations.

This allowed the customer to continue depositing, gambling £16,280 in total and losing £8,321 for a further two weeks until their account was blocked.

Platinum Gaming also failed to ensure that its policies, procedures and controls were kept under review and revised appropriately to ensure that they remained effective.

Gambling Commission executive director Kay Roberts 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.”

In spring last year, Sky Betting & Gaming, 888, and Bet Victor were hit with penalties totalling nearly £12m for marketing to problem gamblers.