UKGC Fines Entain £17 Million for Regulatory Failures in Responsible Gambling

UKGC Fines Entain £17 Million for Regulatory Failures in Responsible Gambling

The UK Gambling Commission (UKGC) has imposed a record-breaking £17 million fine on Entain Group for serious breaches in both social responsibility and anti-money laundering (AML) protocols. This significant penalty applies to Entain's operations across both its online platforms and physical betting locations, marking one of the largest regulatory fines in the UK’s gambling sector.

Breakdown of the Fine and Compliance Failures

Entain’s online business, managed by LC International Limited and encompassing brands such as Ladbrokes, Coral, and Foxy Bingo, faced £14 million in fines. The remaining £3 million was directed at the company's in-person betting outlets, which operate over 2,700 locations in Britain. The UKGC specified that these funds would be used for socially responsible initiatives as part of a larger regulatory settlement.

Key compliance failures highlighted include:

• Social Responsibility Violations: Entain failed to appropriately intervene with customers displaying signs of gambling-related harm. In one case, an online customer was only contacted once despite gambling overnight over an 18-month period and depositing £230,845. The operator also allowed customers to circumvent restrictions by opening new accounts on alternative platforms under the Entain brand.

• Anti-Money Laundering Failures: Entain’s AML lapses included insufficient SOF checks for high-deposit customers. One customer, residing in social housing, was able to deposit £186,000 in six months without adequate verification. The UKGC noted the operator’s over-reliance on open-source information rather than enhanced due diligence practices for high-risk clients.

Additional Compliance Measures and UKGC’s Response

In addition to the fine, the UKGC has imposed stricter conditions on Entain’s operating license. This includes mandatory third-party audits to evaluate compliance efforts and assigning a board member to oversee improvements. UKGC CEO Andrew Rhodes stated that this fine reflects the gravity of Entain’s breaches and warned that future violations could lead to license revocation, underscoring the regulator’s commitment to consumer protection and industry integrity.

This substantial penalty serves as a strong message to the industry, emphasizing the importance of robust compliance practices to protect consumers and prevent criminal activity within gambling operations.