Gaming addiction not acknowledged: Millions fined to Gala Interactive
Gala Interactive, an online gambling provider, has twice failed to acknowledge problematic gaming behavior, resulting in a 2.3 million euro fine from the British Gambling Commission. The large penalties were mainly due to the significant losses incurred by the players involved.
One player had lost 837,545 pounds, while the other had lost 432,765 pounds over the course of a year. Both of them had stolen these funds from their respective employers to fuel their gambling addictions. The UKGC believes that the gambling provider should have recognized the players' excessive betting patterns and intervened. The players had placed around 840,000 bets and made deposits of up to 50,000 pounds in a single day, which should have raised some red flags. Additionally, the provider should have investigated the source of the players' earnings.
Instead of addressing these issues, Gala Interactive treated the customers as VIPs and encouraged them to keep playing. This breached the terms of its gambling license, resulting in financial liability for the provider. Gala Interactive has agreed to pay for the damages and also make an additional payment to the Commission for research into gambling addiction.
The two players may only receive reimbursement of the stolen funds through this settlement, while they have already served long-term prison sentences for embezzlement and theft.
A pattern of misconduct
Gala Interactive had previously been found guilty of similar lapses in its operations. In a case a few years ago, a regular customer had obtained money from a vulnerable person and gambled away close to a million euros through offline and online betting. The company was unaware of the significant changes in betting behavior and the link between his land-based and online gambling activities. Once again, Gala Interactive agreed on a compensation payment with the authorities and promised to improve its protocols.
Gala's parent company, Ladbrokes Coral's CEO, Jim Mullen, regretted the persistent issues in their operations. "After the incidents we investigated with the Commission, we failed to meet our own standards and those of the Commission. After similar incidents, we wanted to change our approach - there was a lack of prioritization here. Publicly discussing mistakes is not pleasant for any company, but we believe it's important for others to see the extent of the failings and try to learn from them," he said.
The Gambling Commission expressed disappointment that these protective measures had not improved, warning the industry to adhere to licensing requirements or face severe sanctions. They had already demonstrated their willingness to impose heavy fines in a previous instance, fining 888 Casino almost 10 million euros for similar issues with player protection. In that scenario, the customers had continued to gamble despite a self-imposed ban.
In summary, Gala Interactive has been slapped with two fines for failing to identify and address signs of problem gambling behavior in its customers, totaling 2.3 million euros. The company had not only failed to take these opportunities to intervene but also encouraged the customers to continue playing, which led to breaches of its gambling license. The British Gambling Commission has used these cases as a stern reminder to gambling providers about the importance of responsible operations and adherence to licensing requirements.
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Source: www.onlinecasinosdeutschland.com