Kindred Group subsidiaries hit with £7.1m Gambling Commission penalty23rd March 2023 7:47 am GMT
Kindred Group subsidiaries 32Red and Platinum Gaming have been hit with penalties totalling £7.1 million by Britain’s Gambling Commission.
32Red will pay £4.2 million and Platinum Gaming £2.9 million for social responsibility and anti-money laundering failures, with both also receiving an official warning under section 117 (a) of the Gambling Act 2005.
An investigation by the Gambling Commission found that Platinum Gaming was in breach of licence conditions 12.1.1 and 12.1.2 of anti-money laundering (AML) regulations, as well as sections 3.4.1 and 3.9.1 of the social responsibility code of practice.
32Red was found to be in breach of the same AML regulations and section 3.4.1 of the social responsibility code of practice.
The breaches included failing to identify a potential problem gambler who deposited £43,000 and lost £36,000 within seven days, as well as performing superficial interactions with other potentially at-risk customers.
The Commission also found that 32Red players who requested self-exclusion were able to register with Platinum Gaming and continue to gamble, with the latter failing to identify and interact with customers who may have been experiencing harms.
AML failures included financial triggers being set too high to effectively manage money laundering risk.
“These failures highlight clearly that both operators failed to interact with customers in a way which minimises the risk of them experiencing harms associated with gambling,” said Kay Roberts, executive director of the Gambling Commission.
“Our investigations also showed that policies and procedures were overlooked, both around customer accounts and anti-money laundering practices. Ultimately, it is an example which all gambling operators should take notice of to ensure they protect customers at all times.”
Shares in Kindred Group plc. (STO:KIND-SDB) closed 0.04 per cent higher at SEK112.55 per share in Stockholm Wednesday.