Ladbrokes investigated over alleged £1m payment to victims of problem gambler

The Gambling Commission is investigating claims made in the Guardian that Ladbrokes agreed to pay nearly £1 million to the victims of a problem gambler who funded his habit with stolen money, in return for not informing the industry's regulator.

A report in the newspaper on Monday said the British man – who ran a property business in Dubai – had stolen from clients in order to gamble, five of whom complained to Ladbrokes.

The bookmaker agreed to pay them a combined sum of £975,000 in return for them not making a complaint or report to the Gambling Commission, according to the Guardian.

A Gambling Commission spokesperson said: "We are inquiring into this matter to ascertain the full circumstances. Our rules clearly set out that gambling businesses should work with us in an open and cooperative way.

"This includes disclosing to us anything which we would reasonably be expected to know. If we find that a gambling business is not doing this then we will consider what action is necessary."

Tom Watson: has urged the Gambling Commission to 'throw the book at Ladbrokes'Credit: Phil Harris / Mirrorpix

Labour deputy leader and shadow culture secretary Tom Watson described the report as "an absolute horror story" in a tweet, adding: "I strongly urge the Gambling Commission to throw the book at Ladbrokes."

Responding to the story, a statement from Ladbrokes Coral said: "We do not comment on individual customer cases.

"However, where we are able to agree a settlement to a dispute with a customer, it is a standard provision of such settlement agreements that the parties keep its content confidential.

"This is quite separate from our own reporting obligations to the Gambling Commission. We notified the commission of this case at the relevant time and will continue to co-operate with our regulator."

A number of operators have received heavy financial penalties from the Gambling Commission for transgressions around money laundering and problem gambling procedures in recent months.

Shares in GVC Holdings, Ladbrokes Coral's parent company, fell sharply on Monday, closing the day nearly five per cent down at 686p.

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