US Company Caesars Entertainment Corp have been fined a record £13 million by the UK Gambling Commission (UKGC) after a series of responsible gambling measures had not been met. The failings include money-laundering, lack of social responsibility and customer interaction failures including VIP customers.
Systematic Failures
Caesars operate eleven land-based casinos across the UK, the latest penalty is the largest to date to be issued by the UKGC after Caesars had been caught violating UK rules. To date, the UKGC have issued penalties of £27 million and suspended three gaming licenses so far this year.Systematic failures were found in the treatment of VIP players who are offered perks and rewards for their loyalty, after depositing and losing large sums of money. One customer who was showing clear signs of a gambling problem was allowed to lose £323,000 within a year.A customer who had ‘self excluded’ was allowed to gamble again and lost £240,000 over a period of 13 months. A nanny who spent her savings, used her overdraft and borrowed from family lost £18,000 in one year.
Money Laundering Failures
Caesars were also found guilty of failing to prevent money laundering. One customer wagered £3.5m in three months, the company failed to check the source of funds of the customer and a politically exposed person (PEP) who lost £795,000 in a year. PEP is someone who is more likely to be at risk of bribery and corruption because of their position.Neil McArthur Chief Executive of the gambling Commission said,“ In recent times the online sector has received the greatest scrutiny around VIP practices but VIP practices are found right across the industry and our tough approach to compliance and enforcement will continue, whether a business is on the high street or online. “ Caesars Entertainment UK said, “ It acknowledges falling short of its standards and accepts the settlement reached by the British Gambling Commission.”