Kindred Group brands hit with £7.1m fine for AML and social responsibility failures

The UK Gambling Commission (UKGC) has handed down penalties totalling £7.1m to Kindred Group’s 32Red and Unibet subsidiaries for social responsibility and anti-money laundering (AML) shortcomings.

32Red Limited, which operates 32Red.com, was fined £4,195,655 while Platinum Gaming Limited, the company behind Unibet.co.uk, faces a penalty of £2,937,599.

Both operators have also received a warming following the investigation by the regulator.

Laying out its findings, the UKGC said 32Red should have earlier identified customers who may have been experiencing gambling-related harm.

32Red’s controls were said to be “not effective” as they “failed to identify and protect potential problem gamblers”.

In one instance, a customer was allowed to deposit £43,000 and lose £36,000 within seven days.

Although 32Red was carrying out customer interactions, the regulator said they were “superficial” and “lacked depth and probing”.

The operator also settled for customer assurances that they were comfortable with their level of gambling and could afford it, the regulator noted.

Meanwhile, Platinum Gaming failed to have effective policies and procedures to identify and separate accounts held by the same individual.

The UKGC said an example was that self-excluded or blocked customers were able to register on Unibet after being blocked or self-excluded at 32Red.

As for the AML deficiencies, 32Red reviews were too high to trigger investigations and not appropriate to effectively manage money laundering and terrorist financing risks.

Meanwhile, those subject to source of funds requests were, in most cases, not prevented from depositing and gambling during the two-week period allowed by 32Red to respond to the request.

This resulted in further significant depositing and loss activity occurring, the regulator stated.

One 32Red account didn’t have a deposit block put in place after an information request deadline expired and the customer went on to deposit and gamble £16,280, losing £8,321 over the next fortnight until the account was blocked.

Unibet’s policies, procedures and controls in relation to AML “were not appropriate”, the UKGC said.

Kay Roberts, executive director of the UKGC, said: “These failures highlight clearly that both operators failed to interact with customers in a way which minimises the risk of them experiencing harms associated with gambling.

“Our investigations also showed that policies and procedures were overlooked, both around customer accounts and anti-money laundering practices.

“Ultimately, it is an example which all gambling operators should take notice of to ensure they protect their customers at all times.”

The latest penalty comes almost four years after Platinum Gaming paid a regulatory settlement with the UKGC for failing to identify gambling harm and prevent money laundering.

Reacting to the fine, Kindred Group CEO Henrik Tjärnström said: “While we accept the outcome, and the acknowledgment that we have already taken significant steps to strengthen our processes, we also recognise that we need to work even harder to ensure a safe and compliant business.

“We appreciate the Commission’s clear recognition that our operations are in an improving position and that we remain fit to hold an operating licence. Our commitment to reducing gambling harm across our platforms is a key part of our Journey towards Zero ambition – and we are redoubling our efforts to ensure we continue that progress,” he added.

The CEO also confirmed that Kindred increased headcount in the UK compliance and risk management teams and has continued to implement improvements in its internal processes.

These include the rollout of automated interventions, a bespoke approach for under 25s and the implementation of full registration blocks for players who shown signs of significant financial pressure.