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The UK Gambling Commission has charged the Kindred Group with a hefty £4.19-million (US$5.15 million) fine for its site management practices.
The UKGC’s latest report reveals breaches that drove Kindred 32 Red Limited to fork out £4.19 million (US $5.15 million) due to a large fine. Platinum Gaming, UK’s Unibet operator, was also found guilty and was charged with a fine of £2.93 million (US$3.6 million).
According to the UKGC, “32Red allegedly allowed extended gaming sessions that should have indicated the possibility of potential gambling harm. The company didn’t intervene as it should have. Instead, it relied heavily on customer trust, while management failed to recognize and safeguard users’ interests. In one example, a user deposited £43,000 (US$52,933) and lost £36,000 (US$44,316) in just a week.”
The UKGC typically uses social responsibility and anti-money laundering as blanket topics that lead to fines and settlements. The gambling regulator has frequently accused operators of not fulfilling the requirements of user reviews and failing to conduct CDD on spending habits. The regulator added that 32Red failed to properly enforce protocols that highlight the risks of terrorist funding and money laundering, this negligence can cause criminal activity.
The UKGC stated that “Unibet’s protocols for identifying duplicate accounts and assisting affected customers were inadequate. They found that the efficacy of the brand’s operational standards, processes, and checks wasn’t endorsed, nor were they regularly assessed for suitability.”
The regulator also discovered another issue in source funds management. They identified that one customer’s account should have been blocked from receiving deposits as per the company’s policy, but it remained open after the deadline to request information. As a result, the customer could access their fund and continued to play for over two additional weeks. He lost £8,321 (US$10,243) after betting £16,280 (US$20,048).
The UKGC’s newest mandate is under effect and it is the third enforcement action in 2023, following a banner year of collected fines. Since the start of this year, the regulator has imposed fines and settlements collectively worth over $15 million.
On all the statements from the regulator Kindred promised to clean up and conceded to all fines.. It added that it has already started the process of hiring new staff for compliance and risk teams. The CEO of Kindred, Henrik Tjärnström stated, “Our commitment to reducing gambling harm across our platforms is a key part of our journey towards zero ambition – and we are redoubling our efforts to ensure we continue that progress.”