Apr6
bet365 Receives Fine of £582k From the UKGC for Violating AML, and Social Responsibility
Gambling Regulator of GB so Far Accumulated £58.9m in Financial Sanctions from 39 Cases
March 9, 2020 Aleksandra Zolotic
As far as the data of a public records request from the Gambling Business Group (GBG) reveal, the Gambling Commission of Great Britain so far collected £58.9m in financial sanctions and voluntary settlements. The document encomes the period between June 2014 and December 2019.
However, Peter Hannibal, chief executive of the GBG has doubts whether the Gambling Commission has carried out measures to evaluate the effectiveness of their spending.
As Hannibal explained:
“When we first wrote to the then Minister, Tracey Crouch and subsequently requested the information from the Commission, we were informed [by the Gambling Commission] that they did not consider it to be a priority.”
The Distribution of Funds
The £58.9m was collected across 39 fines and settlements, with the hugest package (of £7.8m) paid by 888 in 2017 for significant flaws in its social responsibility processes. This included the repayment of £3m in deposits made by self-excluded players.
Of these acquired funds…
… the Gambling Commission has spent £756,997 covering its own costs in carrying out the investigations. A further £24m was repatriated to those who fell victim to illegal gambling activity and £34.8m was spent on “socially responsible purposes”.
The main reason why GBG made a public record request was the lack of response from the Commission through other channels to provide these insights.
Hannibal pointed out:
“Apart from the straightforward issue of why did it take an FOI request to get this information in the first place, it appears that the Commission does not have an independent process in place for checking whether the funds they have allocated to socially responsible purposes have been spent effectively and have delivered the impact intended.”
All Financial Resources Are Vitally Important
Within the Commission’s own Statement of Principles, there is an obligation to meaningfully evaluate the effectiveness of the spend on socially responsible purposes, which is why GBG wanted to shed more light on this matter.
Comments GBG’s chief executive:
“One of the few things that all stakeholders in UK Gambling can agree on is that all RET [research, education, and treatment] financial resources are vitally important and should be spent where they are most effective in reducing and preventing harm. Whether these funds are raised through donations, or via a levy, or as in this case through financial penalties, all funds are equally valuable and should, as a result, be subject to effective valuation.”
GBG’s request is not the only one questioning…
…the regulator’s activities in this field. In February, the National Audit Office (NAO) also queried whether the Commission carried out a proper evaluation of its efforts to raise consumer protection standards.
The office also questioned whether the Commission’s enforcement actions were truly effective, noting that it was unclear if they were succeeding in deterring operators from breaking rules and regulations.
Source:
“GB regulator accumulates £58.9m in penalties to Dec 2019”, igamingbusiness.com, March 6, 2020.
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I that the Commission penalized the operators who don’t follow the rules, but yes, I agree they should also have some measures to see how these funds are used.