Two online gambling operators, 32Red and Platinum Gaming, both owned by Kindred Group, have been fined a total of £7.1 million ($8.7 million) by the Gambling Commission for their failure to comply with anti-money laundering (AML) and social responsibility regulations. The investigation revealed multiple shortcomings in their approach to customer interaction, responsible gambling measures, and AML practices. As a consequence, 32Red will pay £4,195,655 in fines, while Platinum Gaming will pay £2,937,599. This enforcement action sends a clear message to all gambling operators to prioritize customer protection and ensure compliance with regulatory requirements.
AML and Social Responsibility Failures:
The Gambling Commission’s investigation exposed significant shortcomings in the AML and social responsibility practices of both 32Red and Platinum Gaming. These failures indicate a lack of effective customer interaction strategies aimed at minimizing the risk of harm associated with gambling. 32Red, for instance, failed to enforce responsible gambling measures and neglected to identify and protect problem gamblers adequately. Disturbingly, one customer deposited £43,000 and lost £36,000 within a week, yet the operator accepted the customer’s claim without conducting further checks on their affordability.
Furthermore, 32Red failed to implement the required measures outlined in the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017, indicating a lack of vigilance in combating potential money laundering activities.
Platinum Gaming, on the other hand, allowed self-excluded or blocked customers to evade the ban by creating separate accounts, a clear violation of regulatory requirements. The operator also failed to engage with customers who were displaying signs of problem gambling, neglecting their duty to provide appropriate support and intervention.
Commitment to Improvement and Compliance:
Henrik Tjärnström, CEO of Kindred Group, acknowledged the outcome of the investigation and recognized the need for further efforts to ensure a safe and compliant business environment. Tjärnström emphasized the steps already taken to strengthen processes and underscored the company’s commitment to reducing gambling harm across its platforms. The Kindred Group aims to achieve this through its “Journey towards Zero” initiative, which focuses on minimizing the negative impact of gambling.
Importance of Customer Protection:
Kay Roberts, Executive Director of the Gambling Commission, stressed the significance of customer protection and the responsibility of all gambling operators to prioritize it. The failures identified in the case of 32Red and Platinum Gaming serve as a stark reminder for the industry as a whole to maintain robust policies and procedures, implement effective AML measures, and ensure responsible gambling practices. By interacting proactively with customers, operators can minimize the risks associated with gambling and protect vulnerable individuals from harm.
The penalties imposed on 32Red and Platinum Gaming by the Gambling Commission for AML and social responsibility failures highlight the importance of maintaining high standards in the online gambling industry. By failing to comply with regulatory requirements, both operators neglected their responsibilities towards customer protection and proper AML practices. The fines imposed serve as a reminder to all operators to prioritize the safety and well-being of their customers, reinforcing the need for enhanced customer interaction, responsible gambling measures, and stringent AML controls. The Kindred Group is committed to addressing these deficiencies and continuing its progress toward a safer gambling environment as part of its “Journey towards Zero” initiative.