Entain Awarded Socially Responsible Operator of the Year Just Weeks Before £17mn Fine for Failing to Adhere to Social Responsibility
Will Prochaska, Strategy Director at Gambling with Lives, sat down with the BBC this week to discuss the record fine lodged against Entain, parent company of Ladbrokes and a joint venture partner of BetMGM in the U.S. regulated sports betting market. It's their second fine in three years.
Gambling with Lives is a charity set up in 2018 by families bereaved by gambling-related suicide.
Entain was handed down a £17mn fine for failure to adhere to social responsibility and anti-money laundering (AML) safeguards.
In a bizarre twist, Entain was awarded Socially Responsible Operator of the Year by our friends at SBC (we know they know this isn't their brightest moment) just weeks prior to the fine being levied against them. Oh, and it was the second consecutive year they received the award. Let that sink in.
Only the suits who attend these awards ceremonies consider them relevant (news flash: they're not). While these folks are busy high-fiving and fist-bumping one another, longtime industry execs, and anyone with a clue, on LinkedIn and various industry trade groups see incidents like this as a travesty. Nevermind the award resembles something from the Bloody Bowels of Hell (see pic below), you'd think SBC could find a thousand (maybe two thousand) more worthy nominees. No, they have to go with Entain.
The company admitted to wrongdoing back in 2019 and promised corrective measures. While amassing gaming industry awards for their "social responsibility", Entain apparently did little to rectify any indiscretions.
A company statement read in part: "GVC acknowledges and regrets that certain legacy systems and processes in place in the Ladbrokes and Coral operations during the period 2014-2017 did not adequately meet the regulatory requirements in respect to social responsibility and anti-money laundering (“AML”) safeguards."
Entain CEO, Kenneth Alexander released a statement following the punitive measures: “Soon after the acquisition of Ladbrokes Coral following meetings and ongoing enquiries by the Gambling Commission, it became clear to GVC that there had been historic compliance failures within certain areas of the operations. Working closely with the Gambling Commission and an independent firm of solicitors, GVC facilitated a thorough, prompt and far-reaching investigation, which has led to today’s settlement. These historical failings were unacceptable and since the acquisition, I have overseen a systematic review of the enlarged Group’s player protection procedures and the individuals responsible for these problems have exited the business. I am confident that, we now have in place a robust and industry leading approach to player protection.
“More broadly, GVC is determined to take the lead in the critical area of responsible gambling, and is taking decisive, tangible action across a range of initiatives. This includes our recent voluntary commitment to increase funding for research, education and treatment projects ten-fold, as well as our decision to end all sponsorship deals that promote our brands on UK football shirts or on pitch-side advertising hoardings. However, there is more to be done and social responsibility and we will continue to work with other gambling companies and the Gambling Commission to raise operating standards.”
Prochaska, in his interview with the BBC, said he does not believe anything will change much.
"I am worried that they and other operators in this industry see these fines as simply the cost of doing business."
You think?
The Jamie Foxx graphic above from Entain's BetMGM regulated mobile sports betting site in the States was from just four weeks ago.
And if you can't get enough of these awards ceremonies, no worries. SIGMA Malta 2022 in November will be featuring one that is billed as follows:
"Alongside premier networking opportunities, the extravagant gaming awards gala seeks to recognise leading players in the gaming industry in a celebration of achievement and innovation."
They, too, have a Socially Responsible Operator of the Year category but the nominees have yet to be announced. Probably Entain will be one.
Of note, among their Crypto Payment Solution Of The Year nominees in 2019 was one BitPay. They were given an "F" by the Better Business Bureau. No idea who won.
Last February, the Office of Foreign Assets Control (OFAC) reached a $507,375 settlement with BitPay for 2,102 crypto sanctions violations.
Watch the interview below. You will need to sign into LinkedIn. Can also be viewed here (with sign in)
- Nagesh Rath, Gambling911.com Publisher
