32Red had been hit with £2 million penalty for single problem gambler
The penalty of £2 million was given by the gambling commission to the online gambling operator 32Red as they failed to protect a problem gambler and also for money laundering failure. The customer was allowed to make a deposit of £758,000 to 32Red without running a check for social responsibilities and not even for money laundering.
The Gambling Commission had carried out an examination between Nov’14 and Apr’17 on the way 32Red was dealing with their players. During the inquiry there were minimum 22 incidents showing the customer was a problem gambler. But in those incidents rather than running a check on well being of the player with problem gambling behavior, the firm encouraged players to gamble more which was clearly the opposite of what 32Red was supposed to do.
When any problem gambling signs are spotted the operators must take action regarding it and should pay attention and keep reviewing their players.
Bonuses offered by 32Red
As mentioned above, there were occasion emphasizing the problem gambling but rather than inspecting these, the players were offered bonuses encouraging them to carry on playing. As from what The Gambling Commission mentioned, 32Red need to review the players in Aug’16 but they only done it in Jan’17 since a win of more than £1 million was immediately gambled again.
According to The Gambling Commission, the player responded after five weeks to the request, to provide their financial position, and failed to justify the information he had given. The payslips and other reports for the commission earned from work was not trustworthy and there were lot of volatility in the income he had received.
While the average monthly deposits made by the player was more than £45K, the documents and information provided was showing a monthly net income of £13,000 only. Actually the player’s net salary was £2,150 only.
The £2 million penalty given calculated as £709,046 for abatement of the financial gains, £1.3 million to be utilized on National Responsible Gambling Strategy in order to tackle problem gambling and £15,000 for the cost of investigation.
When it was asked, to the spokesman of The Gambling Commission, from where the player received that money, was it stolen to gamble? The reply was, 32Red was not aware of the source of the player’s fortune as they botched the anti-money laundering obligations.
A Swedish online gambling operator Kindred took over 32Red in June 2017.