Three gambling companies owned by William Hill will pay fines totaling £19.2 million for failing to protect consumers and implementing inadequate anti-money laundering controls.
The record-breaking fine is a result of the Gambling Commission’s discovery that new customers were able to place large bets in a short period without appropriate checks.
Unchecked, a customer was permitted to establish a new account and spend £23,000 in twenty minutes.
William Hill’s license was “seriously considered” for suspension by the commission.
It was discovered that several safeguards against possible money laundering were lacking. As customers were permitted to deposit large sums without the business undertaking the necessary checks.
One individual spent and lost £70,134 in one month, while another deposited £73,535 and lost £14,010 in four months.
Andrew Rhodes, the Gambling Commission’s chief executive, stated that suspension of licenses was a serious possibility when the investigation was initiated due to the pervasive and alarming nature of the deficiencies uncovered.
However, because the operator immediately acknowledged their shortcomings and collaborated with us to swiftly implement improvements, we opted for the largest fine in our history.
Mr. Rhodes stated that the commission had witnessed “immediate and significant improvements” since 888 took over William Hill last year.
888 stated that the issues occurred under prior ownership and management. “After acquiring William Hill, the company swiftly implemented a rigorous action plan to address the identified issues,” a spokesperson said.
The commission uncovered the following issues:
Without verification, one individual was permitted to establish a new account and wager £32,500 over two days.
The organization neglected to identify customers at risk for gambling-related harm. A consumer in one instance lost £14,902 in 70 minutes.
The organization failed to implement a 24-hour delay between receiving credit limit increase requests and granting them. One customer was permitted to place a stake of £100,000 immediately, despite having a £70,000 credit limit. Customers were able to place large wagers without adequate checks on the source of the funds.
When one customer wagered £19,000 in a single wager, the company neglected to request proof of the source of funds and did the same thing when another bettor wagered £39,324 and lost £20,360 over 12 days.
Mr. Rhodes stated that controls are needed to prevent people from spending large amounts of money so quickly without action.
“We need protection whether they can afford it or want to make it. And William Hill recognizes that they simply do not have them at this time.”
Under the terms of the settlement with the William Hill Group, WHG (International), which operates williamhill.com, will pay £12.5 million, Mr. Green, which operates mrgreen.com, will pay £3.7 million, and William Hill Organization, which operates over 1,300 wagering outlets in the United Kingdom, will pay £3 million.
The £19.2 million collected from fines will be donated to “socially responsible” organizations.
Entain was fined £17 million by the Gambling Commission last year, which was the previous record.
Mr. Rhodes stated that despite the sanctions, there are now “signs of improvement” in the conduct of wagering operators.
“There are indications that the industry is increasing its efforts to make gambling safer and reduce the likelihood that criminal funds will enter their businesses,” he said.
“Operators are utilizing algorithms to detect gambling harms or criminal risk more quickly, interacting with consumers sooner. And implementing generally more effective policies and procedures.”
