Casino operator Caesars hit with record ₤ 13m charge

2 April 2020

Casino operator Caesars Entertainment UK has actually been struck with a ₤ 13m charge by the Gambling Commission following a "brochure" of social duty and cash laundering failures.

The penalty is the largest enforced by the commission to date.

The regulator exposed "major systematic failings" at Caesars, which operates 11 casinos in the UK.

Caesars stated it accepted the settlement and acknowledged it had "fallen short of standards".

The Gambling Commission concentrated on the treatment of "VIP" consumers in between January 2016 and December 2018.

VIP schemes reward people who bet large amounts of cash. The Gambling Commission said it has reached an arrangement with betting companies to age-restrict VIP reward plans to those aged 25 years of ages and above.

Among the failings the commission exposed, external were:

insufficient interaction with one consumer who lost ₤ 323,000 in a 12-month duration and had actually displayed signs of issue betting

inadequate interaction with, and source of funds look at, a client who identified as a retired postman and lost ₤ 15,000 in 44 days

inadequate source of funds checks on a client who wagered ₤ 3.5 m and lost ₤ 1.6 m over a three-month period

In addition to the monetary charge, three senior supervisors at Caesars have actually given up their individual licences.

"The failings in this promotion code case are very major," stated the Gambling Commission's president, Neil McArthur.

"A culture of putting client security at the heart of organization decisions ought to be set from the extremely leading of every company and Caesars failed to do this.

"In current times the online sector has actually received the biggest analysis around VIP practices but VIP practices are found right throughout the market and our difficult approach to compliance and enforcement will continue, whether an organization is on the High Street or online.

"We are absolutely clear about our expectations of operators - whatever kind of gambling they use they need to understand their clients. They should communicate with them and inspect what they can manage to gamble with - actioning in when they see indications of damage. Consumer safety is non-negotiable."

Caesars chief regulative and compliance officer Susan Carletta said: "Caesars Entertainment UK acknowledges disappointing its requirements and accepts the settlement reached with the British Gambling Commission.

"Since discovering, instantly resolving and reporting deficiencies in 2018, we have boosted our compliance policies and treatments, and are complying with the yohaig code licence conditions and commission's guidance for best practice. We are positive of the effectiveness of our compliance initiatives going forward."

The ₤ 13m charge will go towards funding the National Strategy to Reduce Gambling Harm, external.

The Gambling Commission has been stepping up its actions against wagering companies and has enforced penalties of ₤ 27m in total this promotion code year.

The action against Caesars tops the previous record ₤ 11.6 m penalty imposed on Betway last month.

Record ₤ 11.6 m charge for betting firm Betway