888 hit with £7.8m penalty for “serious” responsible gambling failings
Great Britain’s Gambling Commission hands out a record penalty package after finding “significant flaws” in the firm’s social responsibility measures
888 has been hit with a record financial penalty of more than £7.8m by the Gambling Commission after the regulator identified “serious failings” in the operator’s handling of vulnerable customers.
The operator, which had been under investigation since May, was found to have “significant flaws” in its social responsibility processes aimed at protecting vulnerable customers.
According to the regulator, technical failures in the operator’s systems had led to more than 7,000 customers who had previously self-excluded from casino/poker/sport still being able to access their bingo accounts.
Customers were able to deposit £3.5m into their accounts over a prolonged period of time, and then continue to gamble for over 13 months, while signs of problem gambling behaviour displayed by one customer was so significant it resulted in criminal activity.
Sarah Harrison: “Independent assurance will be given to see that lessons are learnt”. Credit: GamblingCommission.co.uk
Sarah Harrison, chief executive at the Gambling Commission said: “Safeguarding consumers is not optional. This penalty package of just under £8million reflects the seriousness of 888’s failings to protect vulnerable customers.
“The 888 sanction package will ensure those affected don’t lose out, that the operator pays the price for its failings via a sum that will go to tackling gambling-related harm, and that independent assurance will be given to see that lessons are learnt.”
The Gambling Commission said that while 888 did have self-exclusion procedures in place, they were “not robust enough” and had failed to protect potentially vulnerable customers.
888 Holdings said in a statement: “The Company has been working cooperatively with the UKGC throughout its review and has concluded a voluntary regulatory settlement with the UKGC.
“The Company accepts the Conclusion of the review and is committed to providing players with a responsible as well as enjoyable gaming experience.”
The £7.8m penalty package includes repayment of the £3.5m of deposits made by the self-excluded customers and an additional £4.25m will be paid to a socially responsible gambling cause.
Despite today’s news, 888’s share price was up 4.7% to 263.25 on the London Stock Exchange at the time of writing.