Gambling firm 32Red fined £2m for handing VIP status to problem gambler

Instead of providing the help and advice, company handed out free bonuses to encourage further play, regulator says

The customer was able to deposit an average of £45,000 per month despite having a net salary of just £2,150 (Getty)

Online gambling firm 32Red has been handed a £2m fine for failing to protect a problem gambler and granting the customer VIP status.

The Gambling Commission identified 22 incidents where the vulnerable customer’s behaviour should have raised red flags, including one where they told 32Red staff that they had spent too much money on gambling.

The company allowed the customer to deposit £758,000 between 2014 and 2017 with no social responsibility or money laundering checks.

Instead of providing the customer with help and advice, 32Red handed out free bonuses to encourage further play, the regulator said. The company also failed to check if the customer was able to afford the amount they were spending on gambling.

The customer was able to deposit an average of £45,000 per month despite having a net salary of just £2,150. The customer gave 32red evidence claiming £13,000 per month income which the regulator said was “not credible”.

The account was only reviewed when the customer won a seven-figure sum and then instantly replayed their winnings – a warning sign for problem gambling.

Richard Watson, executive director of the Gambling Commission, said: “Instead of checking on the welfare of a customer displaying problem gambling behaviour, 32Red encouraged the customer to gamble more – this is the exact opposite of what they are supposed to be doing.

“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.

“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.”

Swedish-owned Kindred, which owns 32Red and is based in Malta, accepted the penalty and said it had implemented a behaviour-monitoring system.

A spokesperson said: “Kindred is working hard across all teams and brands to consolidate and improve business processes, making use of best practices from all areas of the business.

“As a company putting sustainability at the very core of its business strategy, Kindred remains committed to ensuring customers can enjoy gambling in a safe and secure environment.”