Paying the penalty: How GVC has addressed historic Ladbrokes Coral compliance failings

GVC Holdings yesterday became the fourth operator in as many months to pay a penalty package to the UK Gambling Commission for historic failings in the social responsibility and AML policies of its Ladbrokes Coral business.

During its review of the operator, UKGC investigators identified seven players who had not been properly dealt with by Ladbrokes Coral from an identity verification, source of funds and RG standpoint from 2014-2017.

With the takeover of Ladbrokes Coral by the GVC Holdings group in 2018, GVC has taken up the mantle of responsibility for addressing these issues. EGR Intel spoke to GVC head of CSR and corporate communications Jay Dossetter to discuss the fallout from the UKGC’s investigation and how GVC has used this as a rallying cry to do better on CSR and anti-money laundering.

EGR Intel: Are there any potential further fines on the horizon for Ladbrokes Coral?

Jay Dossetter (JD): One of the things this settlement does is draw a line under the investigation into the Ladbrokes Coral business. We are not expecting any future fines relating to the business.

EGR Intel: In a statement GVC said the individuals responsible for the AML and social responsibility failings have since exited the business. Who were they and at what level did they operate?

JD: We are not naming individuals, but they were at a department head level – we’re talking about managers within the anti-money laundering and compliance departments.

EGR Intel: The UKGC said it is still making enquiries into the role Personal Management Licence holders played in these failures, is there anyone remaining at Ladbrokes Coral who could potentially lose their PML licence as a result of this investigation?

JD: No, the PML holders relating to the cases in the settlement agreement have all exited the business.

EGR Intel: GVC is now conducting a review of the top 50 customers for 2015-2017 to consider whether any further failings can be identified, and if so, they will divest themselves of profit accordingly. How far is that process along and what happens if any further failings are identified?

JD: The review is ongoing, and we will report the findings to the Commission.

GVC’s review of its top 50 customers could affect several high profile bettors in its Ladbrokes and Coral businesses

EGR Intel: Did GVC know about the potential fine before the acquisition and did it play any part in the acquisition process?

JD: While we were aware of potential historic compliance issues during the acquisition process, it was after completion, following meetings and ongoing enquiries, that it became clearer as to the extent of the problems in parts of the compliance processes of the Ladbrokes Coral business. GVC was keen to facilitate a prompt and thorough investigation with the regulator.

EGR Intel: In December, a UK newspaper ran a story relating to a player who had been given gifts by Ladbrokes who later turned out to be a problem gambler. It then alleged that Ladbrokes tried to make victims sign non-disclosure agreements to not talk to the commission. Was that story related to the settlement yesterday?

JD: The case you are referring to was not part of the settlement and was separately reported to the Commission. The NDA matter is completely unrelated to this concluded investigation. Although there was an NDA associated with the case you are referring to, it was as purely standard commercial practice and we report on all cases in accordance with our licencing obligations irrespective of whether we have entered into an NDA or not.

EGR Intel: Is there any concern internally that this fine could undermine the progress made with the Changing for the Bettor campaign?

JD: In part, the programme was kicked off as an acknowledgement of these historic issues highlighted in yesterday’s settlement, which date back to the period 2014-2017. The Changing for the Bettor campaign is about acknowledging past mistakes, both within the business and indeed from the broader industry. For me, this is an endorsement of the fact that we’ve embraced the challenge to become the leading operator in responsible gambling and have learned the lessons of the past.