You are here: Home / Archives for william

Biggest Fines Ever from UKGC for William Hill

biggest_fines_ever_from_ukgc_for_will_hillThe Gambling Commission in Great Britain has ordered three businesses within the William Hill Group to pay the Commission’s largest fine ever issued, a combined £19.2 million. The penalties come as a result of social responsibility and anti-money laundering failures.

The William Hill-owned online casino site, Mr Green, and the operator of more than 1,300 gambling venues across the UK, William Hill Organization Limited, were hit with various fines ranging from the land-based levy of £3 million to Mr Green with a penalty of £3.7 million, and most significantly williamhill.com operator WHG (International) Limited, with a £12.5 million smackdown.

License Nearly Suspended

Gambling Commission chief executive, Andrew Rhodes said: “When we launched this investigation the failings we uncovered were so widespread and alarming serious consideration was given to license suspension.”

A quick response of full cooperation to fix the failures appears to have saved the operator from even more stringent and robust enforcement.

“However, because the operator immediately recognized their failings and worked with us to swiftly implement improvements, we instead opted for the largest enforcement payment in our history,” Rhodes added.

Just last week the GC fined 32Red and Platinum Gaming – two Kindred Group operators a combined total of £7.2 million. However, the William Hill penalties surpass even the previous record fines of £17 million – the amount Commissioners fined Entain (former GVC) in August 2022.

According to the public notice, the Commission has wrapped up more than two dozen enforcement cases resulting in more than £76 million in penalties for regulatory failures since the beginning of last year.

The first three months of 2023 have seen the following actions against UK-licensed operators:

  • William Hill Group businesses to pay record £19.2m for failures
  • Gambling Commission fines 32Red and Platinum Gaming £7.1m
  • Blue Star Planet faces £620,000 regulatory action
  • £6.1m fine for online operator In Touch Games
  • Online gambling business TonyBet fined £442,750
  • Vivaro Limited faces £337,631 regulatory action

Sanctions as Monetary Fines Levied Appear to be Working

Rhodes said: “In the last 15 months we have taken unprecedented action against gambling operators, but we are now starting to see signs of improvement. There are indications that the industry is doing more to make gambling safer and reducing the possibility of criminal funds entering their businesses.

“Operators are using algorithms to spot gambling harms or criminal risk more quickly, interacting with consumers sooner, and generally having more effective policies and procedures in place.”

Social responsibility failures at William Hill businesses include:

  • Allowing the potential for substantial losses in a short period:
  • A new customer spent £23,000 in 20 minutes without any checks.
  • Another new account holder spent £18,000 in 24 hours with no checks.
  • At Mr Green another customer opened an account and spent £32,500 over the course of two days with no checks.
  • One customer lost £14,902 in an hour and 10 minutes at Mr Green.

Dozens of other social responsibility and anti-money laundering (AML) failures are listed in the overarching public announcement with more details available within Public Statements for each of the three Will Hill-owned entities.

WHG (International) Limited Public Statement

Mr Green Limited Public Statement

William Hill Organization Limited Public Statement

As part of a regulatory settlement, the total penalty of £19.2 million will be disbursed for socially responsible purposes.

A board member of the William Hill business will be made to oversee an improvement plan as an additional license condition. The firm will also undergo a third-party audit to make sure effective AML implementation, safer gambling policies, improved procedures, and control systems are in place and functioning as required.

Source: William Hill Group businesses to pay record £19.2m for failures, Gambling Commission, March 28, 2023

The post Biggest Fines Ever from UKGC for William Hill appeared first on Casino News Daily.

Filed Under: Gambling News Tagged With: , ,

William Hill Regulatory Failures in the UK Could Set a New Record for 888

Making a deal to purchase William Hill’s non-US gambling assets from Caesars Entertainment might prove to be a nightmare for new owner 888. The bookmaker, one of the largest companies of its kind in the world, is preparing to accept one of the largest fines in history.

The William Hill sportsbook inside Buffalo Bill’s Hotel Casino
The William Hill sportsbook inside Buffalo Bill’s Hotel Casino. The UK arm, which now belongs to 888, is under fire for alleged regulatory failings. (Image: The Nevada Independent)

The Daily Mail reports that sources indicate the UK Gambling Commission (UKGC) could impose a fine of £15 million (US$17.81 million) on William Hill. After receiving new information, The Mail then said the amount could actually be much higher, possibly more than £20 million (US$23.75 million).

That would be substantially greater than the £17 million (US$20.19 million) fine Entain received last year, setting a new record. 888 is reportedly preparing for the worst, already setting aside money to cover the fine.

888’s Downswing

The fine results from violations that fall within the scope of “social responsibility and anti-money laundering obligations.” One source told the media outlet the fine against William Hill could be “north of £20 million.”

For the bookmaker, this would be a huge blow. 888 Holdings is likely to drop off the FTS250 index this month, a stock market index that contains 250 UK-based mid-market cap companies listed on the London Stock Exchange. Since September 2021, its share price has fallen by 85%.

888 bought William Hill last summer from Caesars for £2 billion (US$2.37 billion). In addition, its portfolio includes online casinos and more than 1,000 retail sports betting points.

This isn’t the first time the British operator has run into trouble, and several recent issues are causing the company grief. In January, an investigation began into accounts of VIP customers from the Middle East in relation to suspected money laundering.

888 determined that many of its betting whales were able to deposit and withdraw massive sums of money with virtually no oversight. As a result of the scandal, CEO Itai Pazner immediately stepped down after more than 20 years with the company. Lord Mendelsohn, 888’s chairman, took his place until the board finds a permanent replacement.

Now, everyone is waiting for the company’s fresh financial statement, which 888 will release at the end of March. At around the same time, the company’s CFO, Yariv Dafna, is going to step down.

More Trouble on the Horizon

888 is operating illegally in Austria. At least, that’s what the country’s supreme court has determined. It believes 888 and Flutter have been offering their services in Austria, while Casinos Austria is the only company with a license to do so.

As a result, the court determined that users could file claims with 888 and Flutter to receive reimbursement for their losses. The Financial Times reported a few days ago that more than 2,500 users have already received more than €75 million (US$79.31 million) in compensation from several operators since January.

888 and Flutter also reportedly owe around an additional €34 million (US$35.95 million), which they are allegedly withholding as they fight Austria.

On two occasions since 2017, 888 has had to pay regulatory fines in the UK. Those amounted to £17.2 million (US$20.5 million) in just two penalties, and it doesn’t look like the company will close its checkbook anytime soon.

The post William Hill Regulatory Failures in the UK Could Set a New Record for 888 appeared first on Casino.org.

Filed Under: Gambling News Tagged With: , , , ,