Regulation round-up 7 September 2017
The biggest regulatory news from the egaming industry in the last seven days (31 August to 7 September 2017)
888 hit with £7.8m penalty for “serious” responsible gambling failings
Great Britain’s Gambling Commission hands out a record penalty package after finding “significant flaws” in the firm’s social responsibility measures
888 has been hit with a record financial penalty of more than £7.8m by the Gambling Commission after the regulator identified “serious failings” in the operator’s handling of vulnerable customers.
The operator, which had been under investigation since May, was found to have “significant flaws” in its social responsibility processes aimed at protecting vulnerable customers.
According to the regulator, technical failures in the operator’s systems had led to more than 7,000 customers who had previously self-excluded from casino/poker/sport still being able to access their bingo accounts.
Customers were able to deposit £3.5m into their accounts over a prolonged period of time, and then continue to gamble for over 13 months, while signs of problem gambling behaviour displayed by one customer was so significant it resulted in criminal activity.
Sarah Harrison: “Independent assurance will be given to see that lessons are learnt”. Credit: GamblingCommission.co.uk
Twenty states back New Jersey in Supreme Court battle
At least 20 states are backing New Jersey in the state’s Supreme Court battle to legalise sports betting.
Officials from nineteen states, including Florida, Ohio and Texas, have co-signed an amicus brief submitted to the Supreme Court by West Virginia.
The brief argues for the preservation of state’s rights and their right to decide themselves on sports betting.
The support of 40% of the states in the union will bolster New Jersey’s efforts to overturn the federal sports betting ban at the Supreme Court.
Sky Bet shuts affiliate programme amid regulatory concerns
Sky Betting & Gaming (SB&G) will close down its UK-facing affiliate programme in the next 28 days following growing regulatory concerns surrounding affiliates, EGR Intel has learned.
The operator informed affiliates of its decision this morning, which SB&G said was made to ensure it continued to meet “changing regulatory requirements” in the UK online gambling sector.
“Following a comprehensive strategic review, Sky Betting and Gaming has decided to close its UK affiliate programme,” a SB&G spokesperson told EGR Intel.
“We have notified all the companies that will be affected by this decision and would like to sincerely thank them for all their support and hard work in helping to grow and promote Sky Betting and Gaming’s brands since we launched in 2000.”
Ladbrokes takes closer oversight of affiliates following CMA investigation
Ladbrokes has adopted a much stricter oversight of its affiliates after the Magic Sign was contacted by the CMA back in June about misleading terms and conditions in its bonuses and offers.
The London-listed firm was one of five bookmakers contacted by the CMA, and has pledged to learn any lessons that need to be learned from the ongoing investigation.
And one of the main steps the firm has taken has been closer vetting of its affiliate partners.
Ladbrokes CEO Jim Mullen told EGR: “We’re bringing our affiliates very much closer to our own group policy before they can represent us and that’s one of the improvements that you’ll see.
UK media has “anti-gambling agenda”, says Gib gambling commissioner
Gibraltar’s gambling commissioner has dismissed the recent UK media storm on the rise of problem gambling in the UK, labelling it a “misreporting of reality”.
Speaking to GBC News, Phill Brear said: “I’m afraid some of the media in the UK have lost their perspective on the subject.
“There’s an agenda in the UK that’s anti-gambling, and has seduced the media and politicians and they are guilty of mis-reporting what the reality is,” Brear said.
Brear’s comments follow the latest UK Gambling Commission figures, which reported a problem gambling rate of 0.8% of the population, with 5.1% of report respondents at risk of addiction to online gambling.