Company behind Winner and Titanbet closes in UK over GC probe into VIP failings
Playtech-owned operator surrenders licence after investigation rather than face £3.5m penalty over “serious and unacceptable” failures in AML and social responsibility
PT Entertainment Services (PTES) has surrendered its UK licence following a UK Gambling Commission (UKGC) investigation that uncovered “serious and unacceptable” failures in its treatment of VIPs.
The company, owned by Playtech, operates the Titanbet and Winner brands from its headquarters in the Isle of Man.
An investigation was launched by the UKGC in March 2019 after the regulator was contacted by the family of a 25-year-old man who took his own life in April 2017 after incurring serious personal debts.
In the course of its review, the UKGC discovered PTES classified this player as a VIP without verifying players funds, even though the company was aware several of his debit card transactions had been declined.
Between opening an account in December 2016 and the player’s suicide in April, he deposited £148,095 but withdrew £114,027 of these funds, losing £34,068. UKGC investigators found that no responsible gambling interactions was undertaken by the firm during this period.
The UKGC investigation identified general failings in PTES social responsibility relating to its highest spending customers between May 2015 and September 2017. These included insufficient triggers for responsible gambling interactions as well as no specific provision or staff training in dealing with VIP customers.
During the 2016-2017 period, PTES had 240,126 active customers, and of these 633 were sent responsible gambling emails, equating to just 0.26% of the customer base. The regulator broadened its investigation to PTES’ top-20 customer accounts according to amounts lost and top-20 accounts according to amounts won.
Of these, there had only been two customer interactions in the first category and one customer interaction in the second. Of the 40 customers in question, 39 had automatically been awarded VIP status.
In addition, the UKGC found that PTES had inadequate anti-money laundering and risk assessment policies.
As a result of the investigation, the company chose to surrender its UK licence, with the UKGC confirming that it would have imposed a £3.5m penalty on the firm. Winner.co.uk was closed to UK players by Playtech in May 2019, with all existing accounts shut in June.
“The Commission is continuing to investigate the role played by key individuals at PTES who still hold personal licences and will take any appropriate action following completion of further investigations,” the UKGC said.
UKGC CEO Neil McArthur said although PTES had ceased trading, the regulator had decided to complete the investigation to illustrate how operators must learn the lessons from the case.
“Our investigations into the role played by key individuals at PTES are continuing. As such, it would be inappropriate to say more about the specific case at this time,” said McArthur.
“This case – like so many others we have seen – illustrates why the management of so-called ‘high value customers’ has to change.
“Operators must do everything in their power to interact with customers responsibly. We will shortly be opening a consultation to make permanent changes to the way operators recruit and incentivise high value customers,” McArthur added.