Casino operator Caesars struck with record ₤ 13m charge

2 April 2020

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

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

The regulator exposed "serious methodical failings" at Caesars, which runs 11 gambling establishments in the UK.

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

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

VIP plans reward people who bet big amounts of money. The Gambling Commission said it has actually reached an agreement with betting 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 customer who lost ₤ 323,000 in a 12-month period and had actually displayed indications of problem gambling

insufficient interaction with, and source of funds examine, a customer who recognized as a retired postman and lost ₤ 15,000 in 44 days

inadequate source of funds look at a client who wagered ₤ 3.5 m and lost ₤ 1.6 m over a three-month period

In addition to the financial charge, three senior managers at Caesars have actually quit their personal licences.

"The failings in this promotion code case are exceptionally severe," stated the Gambling Commission's president, Neil McArthur.

"A culture of putting consumer security at the heart of business decisions ought to be set from the very top of every business and Caesars failed to do this promotion code.

"In recent times the online sector has actually received the biggest scrutiny around VIP practices however VIP practices are discovered right across the industry and our difficult approach to compliance and enforcement will continue, whether an organization is on the High Street or online.

"We are definitely clear about our expectations of operators - whatever kind of gambling they provide they need to know their customers. They should connect with them and examine what they can afford to bet with - actioning in when they see indications of harm. Consumer safety is non-negotiable."

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

"Since discovering, instantly addressing and reporting deficiencies in 2018, we have boosted our compliance policies and procedures, and are adhering to the licence conditions and commission's assistance for finest practice. We are confident of the effectiveness of our compliance initiatives going forward."

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

The Gambling Commission has been stepping up its actions against wagering companies and has actually imposed charges of ₤ 27m in total this promotion code year.

The action versus Caesars tops the previous record ₤ 11.6 m penalty troubled Betway last month.

Record ₤ 11.6 m penalty for gambling firm Betway