LeoVegas blames migration complexities for marketing issues

Swedish operator LeoVegas has defended its business practices following newspaper revelations it allowed a problem gambler to wager £20,000 in stolen funds.

Earlier this week a Guardian investigation claimed an individual, who previously had their account suspeneded by LeoVegas over “concerning” communication during a live webchat in May 2018, had been repeatedly sent marketing communications by other brands within the LeoVegas group over a seven-month period.

In January, the individual was allowed to register an online account with its 21.co.uk business using his mother’s bank card as the main payment method, gambling £20,000 in stolen funds.

Other brands identified as sending communications during the time include Pink Casino and Castle Jackpot. All three brands were included in LeoVegas’s acquisition of Rocket X, which was completed in January 2018.

A spokesperson for the operator told EGR the assimilation of its UK-based acquisitions into the wider LeoVegas group “entailed complexity in terms of synchronizing databases, routines and processes,” attributing these issues to the failures in marketing.

To manage these issues in a compliant fashion, LeoVegas initiated an “action plan” in 2018, communicating this plan to the Gambling Commission (UKGC). The operator has said it is “delivering” on this plan and addressing any ongoing issues.

“LeoVegas takes compliance very seriously and works consistently in order to ensure a safe experience for our customers and maintain its leading position as a trusted and safe operator,” LeoVegas added.

The Gambling Commission fined LeoVegas £600,000 in May 2018 for a combination of misleading advertising and their handling of customers who were at the end of their self-exclusion period.

The UKGC did not confirm whether LeoVegas would be censured over this latest development, adding that it would investigate in instances “where we see evidence that our rules are not being followed”.