ShareOnline gaming company 888 has been slapped with an eye-watering £9.4 million fine over failures to protect vulnerable customers. During the Covid-19 pandemic many customers racked up huge losses, leaving the gaming giant facing questions over its suitability to hold a prestigious UK license.
Could 888 Really Lose its License?
The United Kingdom Gambling Commission claims that 888 failed to protect potentially vulnerable customers and no financial checks were carried out until they deposited more than £40,000.One customer lost £37,000 in a six-week period during 2020, straight after the UKGC warned the gambling industry that more must be done to protect the vulnerable due to lockdowns in the early stages of the pandemic. Another who earned £1,400 per month was given a £1,300 deposit limit.
An investigation showed that 888’s social responsibility policy did not consist of any detailed customer interaction, only an email template describing responsible gambling tools.
Andrew Rhodes, chief executive of the UKGC, reminded the industry that this is the second monstrous fine dished out to 888 in recent times. In 2017 it was handed a record £7.8 million penalty for similar failings.
“The circumstances of the last enforcement action may be different but both cases involve failing consumers – and this is something that is not acceptable. Today’s fine is one of our largest to date, and all should be clear that if there is a repeat of the failures at 888 then we have to seriously consider the suitability of the operator to uphold the licensing objectives and keep gambling safe and crime-free. Consumers in Britain deserve to know that when they gamble, they are participating in a leisure activity where operators play their part in keeping them safe and are carrying out checks to ensure money is crime-free.”
Source of funds checks to prevent money laundering have become increasingly stricter but as we can see here many firms are still taking a lackadaisical approach. Accepting verbal or written assurances is commonplace rather than requesting proper documentation for affordability checks.
Itai Pazner, CEO of 888, was open about the company’s failures and promised to work more closely with the UKGC to remedy any remaining issues.
“We recognise our responsibility to make gambling safer and regret that previous implementation of our processes failed to meet required standards in the UK. We accept the findings of the UKGC’s investigation of some of 888’s former policies and procedures and have taken immediate appropriate action to improve and address the failings. Over recent years we have made significant investments in safer gambling, including more than doubling the size of our compliance team since 2019. We will continue to work closely with the UKGC, our peers and other stakeholders to drive continuous improvement in the industry.”
