David BurrowsBookmaker Ladbrokes Coral have accepted that failures identified by Gambling Commission in Gala Interactive operations fell short of standards.
T he failures identified by the gambling commission related to the Gala Interactives written policies and procedures.
The company was sanctioned by the Gambling Commission after an investigation into sub-brand Gala Interactive found “significant flaws” in the way it deals with punters displaying problem gambling behaviour.
One customer lost £837,545 over 14 months and the other lost £432,765 over 11 months while playing Gala’s online games.
The first gambler was jailed for four years for stealing from an employer and the second was sentenced to four-and-a-half years for acquiring, using or possessing criminal property.
The Commission said Ladbrokes Coral failed to have in place written policies and procedures that could have curbed the problem gambling behaviour.
Gambling research
The penalty package comprises a £1m payment to fund research relating to the causes of problem gambling and £1.3m for the customers.
In addition, Ladbrokes Coral has volunteered to pay a further £200,000 to fund problem gambling research.
Sarah Harrison, chief executive of the Gambling Commission, said: “We will continue to take robust action where we see operator failures that harm consumers and the wider public.
“It is the responsibility of all operators – particularly key decision-makers in those companies – to ensure they are protecting their customers and step in when there is behaviour that might indicate problem gambling.
“This did not happen in this case and the £2.3m penalty package should serve as a warning to other operators.”
Jim Mullen, boss of Ladbrokes Coral – created from the £2.3bn merger of Ladbrokes and Gala Coral – said it was clear that the firm had not “met our own standards or those demanded by the Commission”
This is not the first time the bookmaker has come in for criticism of late. Earlier this year, a national newspaper reported that staff at a Ladbrokes betting shop had watched whilst a gambling addict took out pay day loans over the phone to fund hundreds of pounds of bets on fixed-odds betting terminals (FOBTs).
The incident was reported to the UK Gambling Commission at the time.