32Red is the latest online gambling company to be hit with a fine by the UK Gambling Commission (UKGC) after the failure to protect a customer from harm related to gambling.The UKGC, UK’s regulatory body for the online gambling industry, issues a press release on June 20th (2018) detailing the reasons for the fine.
What happened?
According to the press release, a customer deposited £758,000 between November 2014 and April 2017, despite earning a little over £2,000 net salary per month.The player was able to make monthly deposits of £45,000, which are assumed to be made with money that did not belong to the player, and was never asked to provide “proof of wealth”, something that is expected of casinos when dealing with high rollers.The UKGC stated that the player showed patterns of addictive behaviour on 22 different instances in the form of comments to the customer service team, often in the form of complaints.Breaking down the main issues from the comments, the UKGC’s report says:“There were three distinct types of contact: 1) poor performance – e.g. I have had enough of the site not performing well, 2) spending too much – e.g. I’ve deposited quite a sum, 3) frustrated, fed up, chasing losses – e.g. all I seem to do is deposit.”
Statement fines
There has been an array of heavy fines out on iGaming companies by the UKGC in recent years, as the regulator attempts to get the message across that vulnerable gamblers must be protected.The penalty package that 32Red have been given, which exceeds £2 million, is one of the largest that the UKGC has handed out to date, and is a sign that the regulator will continue to clamp down on those seen to be failing in terms of social responsibility.