Caesars Entertainment was the recipient of a record-setting £13 million fine from the UK Gambling Commission Thursday.
The fine came after the commission discovered systematic failures to curb problem gambling among their VIP players and failure to follow money laundering regulations. The commission is also revoking the gaming licenses of three senior managers at Caesars for their role in the failures.
Regulators found that on several occasions, those who wagered large sums of money were allowed to lose more than they could afford, according to a report from The Guardian.
One VIP gambler lost £323,000 in a single year, even though he displayed clear signs of gambling addiction. This player played for five hours or more on 30 occasions over a 13-month period. Another customer self-excluded himself and was still allowed to play. He lost £240,000 over a 13-month period.
A self-employed nanny told Caesars that she had lost her life savings on the casino floor and was borrowing from family members to continue playing. She was still allowed to play and went on to lose £18,000 in a year.
Certain Caesars properties also failed to check the source of funds from players who were betting massive amounts, which violated money laundering regulations. One gambler wagered £3.5 million in just three months without the company verifying where the money came from.
A politically exposed person, which is defined as someone at risk of being involved in bribery or corruption because of their job, was allowed to lose £795,000.
Gambling Commission chief executive Neil McArthur told The Guardian that even though virtual gaming has taken the brunt of scrutiny when it comes to these regulations, the commission will continue to enforce harsh punishments for those in the brick-and-mortar space that violate the rules.
“In recent times, the online sector has received the greatest scrutiny around VIP practices, but VIP practices are found right across the industry and our tough approach to compliance and enforcement will continue, whether a business is on the high street or online,” said McArthur.
In a statement released by Caesars, the gaming giant said that they have fixed their mistakes and will improve moving forward.
“Since discovering, immediately addressing, and reporting deficiencies in 2018, we have enhanced our compliance policies and procedures and are complying with the license conditions and commission’s guidance for best practice. We are confident of the efficacy of our compliance initiatives going forward,” read the statement.
The commission is reviewing the current regulations in place surrounding policies that allow VIP gamblers to lose such large sums at the tables. Ideas being floated include limiting VIP status to those 25 or older and looking more closely into someone’s financial status before offering them VIP perks.
source https://casinonewsblogger.com/caesars-entertainment-receives-record-setting-fine-from-uk-gaming-commission/
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