Ladbrokes Coral fined £2.3m for failures at online arm

Betting giant Ladbrokes Coral has been fined £2.3million after ‘failing to interact’ with two customers who gambled away £1.3million of stolen money playing its online games.

The Gambling Commission said its investigations had revealed ‘significant flaws’ in the way Gala Interactive, a sub-brand of the group, dealt with punters displaying problem gambling behaviour such as the two customers.

It also said that Gala failed to put in place written policies and procedures that could have curbed the problem behaviour.

Online gambling: Two customers who gambled away £1.3million of stolen money

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.

It comes as the group, formed from the £2.3billion merger of Ladbrokes and Coral last November, has seen its revenues and profits boosted by growth at its digital division.

Ladbrokes Coral, like other betting companies, has shifted its focus to online gambling in a bid to protect itself from a possible crackdown by the government on fixed-odd betting machines.

The Gambling Commission said that an aggravating factor was that during a previous case regarding similar failings, Gala assured them that customers with problem gambling behaviour would be identified sooner and effectively handled.

Ladbrokes Coral has shifted their focus to online gambling in a bid to protect themselves from a possible crackdown by the government on fixed-odd betting machines

But Gala made this pledge at the same time the two customers were gambling, the Commission said.

Sarah Harrison, Chief executive at the Commission, said the £2.3million penalty package should serve as a warning to other operators.

‘We will continue to take robust action where we see operator failures that harm consumers and the wider public,’ she said.

‘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 £2.3million penalty package should serve as a warning to other operators.’

The penalty package comprises a £1million payment to fund research relating to the causes of problem gambling and £1.3million for the customers.

In addition, Ladbrokes Coral has volunteered to pay a further £200,000 to fund problem gambling research.

Jim Mullen, boss of Ladbrokes Coral said it was clear that the firm had not ‘met our own standards or those demanded by the Commission’.