Entain Faces UK License Revocation Threat for Gambling Violations

The chief executive of the UK Gambling Commission, Andrew Rhodes, cautioned Entain Group that they could be stripped of their operating permit in the UK if they persist in disregarding market rules and regulations.

Entain was instructed today (August 17th) to pay a record £17 million (€20.3 million/$20.6 million) following the discovery by regulators of a series of lapses in social responsibility and anti-money laundering practices within its online and physical operations.

The company will pay £14 million for shortcomings in its LC International Limited online division, which operates websites including Ladbrokes.com, Coral.co.uk and Foxybingo.com, and £3 million for deficiencies in its Ladbrokes Betting & Gaming Limited physical business, which has 2,746 betting shops across the UK.

Rhodes, addressing the issue, highlighted that this was not the initial instance where the Commission has taken action against Entain for breaching license terms.

In July 2019, prior to the group being rebranded as Entain, Ladbrokes Coral was penalized £5.9 million for systematic failures related to social responsibility and anti-money laundering measures.

Rood cautioned that stripping Entain of its operating permit in the UK would be a “very real possibility” if additional infractions were uncovered within the organization.

In response to the verdict, Entain stated that it accepted the ruling, acknowledging that certain outdated systems and procedures supporting its UK operations between 2019 and 2020 “did not meet the Commission’s evolving regulatory expectations.” The company added that it had reached a regulatory settlement agreement with the Commission to resolve the issue and avoid further costly and drawn-out legal actions. However, Entain also emphasized that the Commission had not discovered any criminal spending in Entain’s operations.

“Our investigation revealed serious shortcomings that have led to our largest enforcement outcome to date,” Rood stated. “There were completely unacceptable anti-money laundering and safer gambling failures. Operators should be under no illusion that they must never prioritize commercial interests over compliance.

“This marks the second time this operator has violated the rules designed to make gambling safer and crime-free.

“They should be aware that we will be closely monitoring them, and further serious breaches will make the revocation of their operating license a very real possibility. We expect better, and consumers deserve better.”

Moreover, the organization declared that the concerns raised by the committee pertain to the time frame between December 2019 and October 2020, preceding the modifications Entain has subsequently implemented in responsible gaming and anti-money laundering.

Entain particularly emphasized its Advanced Responsibility and Care (ARC) program, introduced in 2021. The program employs artificial intelligence technology, operates in real-time, and is customized for each user.

“Preliminary trials of ARC in the UK have revealed risk assessment accuracy exceeding 80%, a 120% increase in high-risk individuals utilizing safer gambling tools, and a 30% overall reduction in customer risk levels,” Entain stated.

“Furthermore, in May of this year, Entain was granted the Advanced Safer Gambling Standard by GamCare for demonstrating the highest levels of player protection and social responsibility across its online and land-based gambling operations in the UK.”

As part of the agreement, Entain has also consented to appoint a board sponsor to oversee the execution of any further enhancements identified in the initial compliance evaluation from 2020, and to undergo an independent review of relevant policies and procedures at a future point in time.

The organization added that the £17 million settlement amount has been reserved for in its financial statements.

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