Gambling industry failings criticised after record year for financial penalties

Betting operators have been accused of putting commercial considerations ahead of regulatory requirements by the Gambling Commission following a record-breaking year for financial penalties being imposed on the industry.

During the 2020-21 financial year a total of £32.1 million was paid by 15 gambling businesses as a result of fines or regulatory settlements.

Issues uncovered by the Gambling Commission were detailed in the regulator's annual compliance and enforcement report published on Thursday.

They included an organised criminal gang which targeted at least 28 online operators using various identities with "significant amounts" being deposited, including a deposit of £574,675.01 which was accepted by one online betting operator. In another case a financial adviser stole nearly £15m from wealthy clients to fund his gambling addiction with multiple operators.

Commission casework during the period led to the suspension of five operator licences and the revocation of licences for one operator and nine personal management licence holders.

Gambling Commission chief Andrew Rhodes: 'This is simply unacceptable'

Chief executive Andrew Rhodes, who was appointed to the Gambling Commission in June, said he had been impressed by the amount of enforcement work carried out by the body, but said it was "disappointing that it should be necessary".

He added: "Looking back at enforcement in 2020-21 we see the same two weaknesses in almost every case – operators failing to adhere to social responsibility and anti-money laundering rules.

"The reasons for these failings are almost as concerning as the failings themselves. Our casework reveals that operators are either not making suitable resources available or are simply putting commercial objectives ahead of regulatory ones. This is simply unacceptable and will be seen as such by others in the industry who work hard to achieve compliance.”

Rhodes said he recognised the industry had gone through a difficult period due to the Covid-19 pandemic and that "hard decisions" had been made about jobs and livelihoods.

However, he added: "Whilst the threat of Covid-19 hasn’t gone away, the gambling sector has largely resumed operations. As Great Britain's regulator for the gambling industry, we still see far too many breaches of regulations where everyone in the industry agrees we should not see them. The industry has the resources, skills and knowledge to change this."

The report comes as a white paper following the government's review of gambling legislation is expected "in the coming months", according to gambling minister Chris Philp.

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