Casino operator Caesars struck with record ₤ 13m charge

2 April 2020

Casino operator Caesars Entertainment UK has actually been hit with a ₤ 13m penalty by the Gambling Commission following a "brochure" of social responsibility and money laundering failures.

The penalty is the biggest enforced by the commission to date.

The regulator exposed "major organized failings" at Caesars, which runs 11 casinos in the UK.

Caesars stated it accepted the settlement and acknowledged it had actually "disappointed requirements".

The Gambling Commission focused on the treatment of "VIP" clients in between January 2016 and December 2018.

VIP schemes reward people who bet large amounts of money. The Gambling Commission said it has actually reached an agreement with wagering companies to age-restrict VIP incentive schemes to those aged 25 years of ages and above.

Among the failings the commission uncovered, external were:

insufficient interaction with one client who lost ₤ 323,000 in a 12-month duration and had shown indications of problem gambling

inadequate interaction with, and source of funds look at, a customer who determined as a retired postman and lost ₤ 15,000 in 44 days

insufficient source of funds look at a consumer who wagered ₤ 3.5 m and lost ₤ 1.6 m over a three-month duration

In addition to the punitive damages, three senior managers at Caesars have quit their personal licences.

"The failings in this promotion code case are incredibly serious," stated the Gambling Commission's primary executive, Neil McArthur.

"A culture of putting customer security at the heart of company choices should be set from the very leading of every company and Caesars stopped working to do this promotion code.

"In recent times the online sector has received the best examination around VIP practices but VIP practices are found right across the market and our difficult method to compliance and enforcement will continue, whether a company is on the High Street or online.

"We are absolutely clear about our expectations of operators - whatever type of gambling they use they must understand their clients. They must connect with them and inspect what they can afford to gamble with - actioning in when they see indications of harm. Consumer security is non-negotiable."

Caesars primary regulative and compliance officer Susan Carletta said: "Caesars Entertainment UK acknowledges falling short of its standards and accepts the settlement reached with the British Gambling Commission.

"Since finding, instantly dealing with and reporting deficiencies in 2018, we have actually enhanced our compliance policies and treatments, and are adhering to the licence conditions and commission's assistance for finest practice. We are positive of the effectiveness of our compliance initiatives going forward."

The ₤ 13m penalty will go towards funding the National Strategy to Reduce Gambling Harm, external.

The Gambling Commission has been stepping up its actions versus wagering business and has actually enforced penalties of ₤ 27m in overall this promotion code year.

The action against Caesars tops the previous record ₤ 11.6 m charge enforced on Betway last month.

Record ₤ 11.6 m penalty for gambling firm Betway