32Red under investigation for AML and social responsibility failings
EGR understands the alleged transgressions occurred before the Kindred takeover
32Red is being investigated by the UK Gambling Commission for AML and social responsibility failings, EGR can reveal.
The investigation is ongoing, and concerns incidents that happened before the casino operator was acquired by Kindred in February 2016.
The Gambling Commission said it could not confirm or deny the existence of a specific investigation for fear of prejudicing the outcome.
32Red is believed to be one of the 17 casinos being investigated by the Gambling Commission, with five thought to being in danger of losing their licences, although 32Red is understood not to be one of the latter five.
The regulator said at the time companies had been failing to carry out sufficient AML checks, failing to do due diligence on customers and their source of funds, and failing to intervene when customers showed signs of problem gambling.
However, the prospect of more fines for operators has prompted something of a backlash within the industry, with one senior executive telling EGR: “The UKGC are seemingly getting out of control”.
“The reality is that operators have not largely gone rogue or become inept in their compliance; Sky Bet was a good example. Apparently the UKGC see the fines as a “profit centre” towards raising funds for good causes.
“The situation has reached the point where the industry in the UK is going to suffer in that obtaining investment is going to get harder. I’ve already seen ‘political and compliance risk’ cited as an issue with the UK.”
The Gambling Commission said it did not comment on unattributed quotes, but reiterated its commitment to providing a safe and fair environment for customers to gamble.