888 Fined $12.4 Million – License Suitability Under Investigation

One of the world’s leading online betting and gaming companies, 888 Group, was recently fined $12.4 (£9.4) million for failing to protect vulnerable consumers.

Many consumers have suffered huge losses during the Covid-19 pandemic, raising concerns about the right of gaming giants to keep their UK licences.

Can 888 lose its License?

According to the UK Gambling Commission, 888 has failed to protect vulnerable consumers by not carrying out financial checks until deposits of more than $52000 (£40000).

It has been revealed that one consumer has lost almost $39,000 (£37,000) in six weeks in 2020 after the UKGC warned the gambling sector that more needs to be done to protect vulnerable people due to lockdowns during the pandemic.

Others who earn $1800 (£1400) per month are given a deposit limit of $1700 (£1300).

UKGC chief executive Andrew Rhodes warned the industry that this was the second colossal fine levied against 888 in recent years. For the same offence, it was fined $10.3 (£7.8) million in 2017.

“The circumstances of the final enforcement action may be different, but both cases involve failed consumers – and this is unacceptable. Today’s fine is one of the largest to date, and it should be clear that there is a repeat of the failure in 888, therefore we must think seriously about the suitability of operators to maintain the purpose of the license and keep gambling safe and crime-free. Consumers in Britain must understand that when they gamble, they participate in leisure activities where operators play to maintain security and carry out checks to ensure that the money not crime free.

888’s CEO, Itai Pazner, admitted the company’s mistake and offered to work closer with UKGC to solve the outstanding problem.

“We recognize our responsibility to make gambling safer and regret that the previous implementation of our processes failed to meet the standards required in the UK. We accept the findings of the UKGC’s investigation into a number of policies and procedures 888 and take appropriate action to improve and address these failures Over the new year we have made significant investments in safer gambling, including more than doubling our compliance team since 2019. We will continue to work closely with UKGC, peers and other stakeholders to drive continued improvement in the industry.