The fine involved a customer who was allowed to deposit £758,000 on the site between November 2014 and April 2017 without money laundering or social responsibility checks.
Despite the large amount of money that entered the customer’s account, the firm failed to spot 22 signs of problem gambling, and in doing violated anti-money laundering and social responsibility regulations, the Commission said on Wednesday.
Instead of checking if there were clear sign of problem gambling in the spending patterns of the individual, 32Red offered deposit bonuses designed to encourage gamblers to spend more.
“Operators must take action when they spot signs of problem gambling and should be carefully reviewing all the customers they are having a high level of contact with," said Gambling Commission executive director Richard Watson.
“Protecting consumers from gambling-related harm is a priority for us and where we see operators failing in their responsibility to keep their customers safe we will take tough action,”
Kindred Group Plc – the Swedish online gaming company that snapped up 32Red in £175.6 million deal last year –said that they accept the penalty charge and “recognises the raised standards required by the GBGC”.
The penalty package consists of a £709,046 divestment of the financial gain and a £1.3 million payment in lieu of a financial penalty imposed for the licence breach.
