New Betfred penalty signs off a summer of fines from the gambling watchdog
Adding to what feels like a summer of fines for betting firms, the Gambling Commission whacked Betfred with a fresh £2.87m penalty this morning for social responsibility and anti-money laundering failings.
The failures include a lack of controls, which meant one punter lost £70,000 in a 10-hour period just a day after opening an account.
“This is a further example of us taking action to investigate and sanction alarming failures,” the watchdog said. “Where standards do not improve, tougher enforcement will follow.”
Although Betfred said it would work with the watchdog to review its policies, and said that there was crucially no evidence of criminal activity found in the commission’s probe, the fine does sit within a wider trend of wrist slaps for gambling firms.
In the last few months alone, the Gambling Commission has dished out hefty punishments to Spreadex, Betway and Smarkets, as well as a record £17m fine in August to Ladbrokes owner Entain.
The regulator said Entain had repeatedly failed to protect problematic gamblers from betting huge sums in their shops and online casinos.
Director of campaign group Clean Up Gambling Matt Zarb-Cousin said that the trend was significant for the industry, despite the upcoming gambling reform seemingly on the back burner.
“The Gambling Commission is sending a clear message to operators that substantial fines will be levied for practices that fall short of expectations,” he told CityAM
“But the penalties need to be more significant, and investigations more frequent, if enforcement action is going to catalyse culture change within the operators. Otherwise fines are seen as another cost of doing business.”
Partner at Keystone Law and gambling specialist Richard Williams said that whilst the tide of fines increases momentum for reform, he was also sympathetic to operators who face the “relatively vague” guidance from the commission on the remit of certain financial triggers for safe gambling.
As it stands, the commission to the individuals and businesses that offer gambling services, but doesn’t impose specific limits on how much can be staked or force operators to take measures against problem gamblers.
While Boris Johnson’s government suggested a much more prescriptive direction for reform, potentially limits on stakes and losses for punters, Liz Truss’ stance is understood to be much more hands-off.
DCMS said it would be publishing the white paper in due course.
“We are undertaking the most comprehensive review of gambling laws in 15 years to ensure they are fit for the digital age.”