31 August, 2017
The penalty package has been imposed on the gambling operator after it failed to handle a number cases of customers who had been put at risk.
The UK Gambling Commission (UKGC) has issued a record £7.8m fine to online casino operator 888 holdings after an investigation found serious failings in its handling of vulnerable customers.
"Due to a technical failure in 888's systems, over 7,000 customers who had chosen to self-exclude from their casino/poker/sport platform were still able to access their accounts on their bingo platform", the regulator stated this morning.
An investigation held by the UK gambling regulatory body, the UK Gambling Commission (UKGC), found that the social responsibility processes of 888 UK Limited, which are aimed to protect the company's customers from any negative effects related to gambling, had been seriously flawed.
The breach went undetected for a prolonged period of time, meaning self-excluded customers were able to deposit £3.5 million into their accounts, and then continue to gamble, for more than 13 months. He gambled for an average of 3-4 hours a day.
It also found the company had failed to recognise "visible signs" of problem gambling, including one customer who staked more than £1.3 million during the period. "This penalty package of just under £8m reflects the seriousness of 888's failings to protect vulnerable customers", said Sarah Harrison, chief executive of UKGC. "The duration and extent of the gambling raises serious concerns about 888's lack of interaction with the customer".
Some £4.25m of the fine will go towards charitable causes helping gambling addiction, while the remainder will be used to repay the affected customers.
888 said it had been working co-operatively with the regulator throughout the review, resulting in the voluntary settlement, adding it was "committed to providing players with a responsible as well as enjoyable gaming experience".
The monetary fine includes a repayment of the £3.5-million deposits made by the customers who were supposed to have self-excluded themselves from any gambling activities on the operator's websites, as well as £62,000 compensation to be paid to the employer who suffered from the money stealing. In addition the UKGC has ordered an independent review of 888's processes surrounding consumer protection.
"888 regrets the historic failings highlighted by the review and accepts the conclusion of the review which recognises the significant lengths that 888 has gone to in order to address the concerns raised and prevent the issues highlighted from reoccurring". While 888 Holdings' stock price jumped almost 5% this morning, the record fine will no doubt grab the attention of gambling industry stakeholders across the UK.
