The Ladbrokes and Coral owner Entain PLC has been levelled a hefty fine for its failures in social responsibility and anti-money laundering, according to a UK regulator.

The UK Gambling Commission said the FTSE 100-listed firm will pay £17 million, for failures at its online business and land-based businesses.

‘Our investigation revealed serious failures that have resulted in the largest enforcement outcome to date,’ said Andrew Rhodes, chief executive of the Gambling Commission.

Entain will pay £14 million related to its online business, LC International Ltd, which hosts 13 sites including ladbrokes.com, coral.co.uk, and foxybingo.com

The remaining £3 million relates to its Ladbrokes Betting & Gaming Ltd operation, which covers 2,746 gambling premises across the UK.

Shares in Entain were down 3.6% at 1,355.50 pence each in London on Wednesday, making the stock the worst performer in the FTSE 100.

The social responsibility failures include not taking measures to minimise the risk of customers experiencing harm, not escalating cases for a safer gambling review, and not managing safeguarding across its brands.

‘The operator conducted just one chat interaction with an online customer who spent extended periods gambling overnight during an 18-month period in which they deposited £230,845,’ the commission explained.

On the anti-money laundering charge, Entain reportedly failed to conduct adequate risk assessments of its online business being used for money laundering and the financing of terrorists. This includes the failure to conduct due diligence as well as source-of-funds checks on customers depositing large amounts.

‘One consumer was allowed to deposit £742,000 in 14 months without appropriate SOF checks and another, who was known to live in social housing, was allowed to deposit £186,000 in six months without sufficient SOF checks,’ the commission continued.

‘This is the second time this operator has fallen foul of rules in place to make gambling safer and crime free,’ said Rhodes.

The funds from the fine will be used for ‘social responsible purposes’ as part of the regulatory settlement, the commission stated.

Responding to the announcement, Entain confirmed it has ‘entered into the regulatory settlement with the commission in order to bring the matter to a close and avoid further costly and protracted legal proceedings.’

The firm accepts that ‘certain legacy systems and processes’ in 2019 and 2020 did not meet the ‘evolving regulatory expectations’ of the commission.

‘However, the group also notes the commission’s statement that it found no evidence whatsoever of criminal spend within Entain‘s operations,’ it stressed.

Regarding the fine, Entain said it has ‘already provided for’ the amount in its financial statements.

The regulator’s CEO Rhodes concluded: ‘They should be aware that we will be monitoring them very carefully and further serious breaches will make the removal of their licence to operate a very real possibility.

‘We expect better and consumers deserve better.’

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