Following Gambling Commission engagement with Ladbrokes Group (Ladbrokes) in relation to a number of compliance and policy matters, the Commission wishes to draw to the attention of the gambling industry more widely a number of important lessons around the issues of potential money laundering and social responsibility in identifying players at risk.
The Commission engaged with Ladbrokes from late 2012 to the summer 2013 to investigate its operations and controls, and identified three areas of learning for Ladbrokes and the wider industry:
- managing trading and the competitive nature of the trading room in combination with meeting regulatory obligations, including managing risk to the licensing objectives
- identification of player risk across a range of products and platforms
- managing anti-money laundering controls, including in connection with criminal investigations, and responsible gambling obligations.
At board level, Ladbrokes has co-operated with the Commission and has conducted itself with commendable candour and openness during our discussions. In addition, Ladbrokes’ senior management have stated that they wish to ensure the group continues to be seen as an industry leader in managing its anti-money laundering and social responsibility risks effectively. Ladbrokes is understandably keen to ensure that the learning generated by the challenges it has faced is made available to the gambling industry more widely.
The Commission has published a full public statement.
The Ladbrokes Board has been open and co-operative throughout this investigation, making clear its determination to identify and remedy any weaknesses and to do so in a way that enables the Commission to share the lessons more widely. The Commission accepts that Ladbrokes have made, and continue to make serious efforts to address the areas of potential vulnerability that have been identified within its organisation. Ladbrokes have made clear their intent to co-operate further in helping work with other industry organisations and the Commission to ensure better policy and compliance across the betting sector and the gambling industry more widely. The Commission will further engage with Ladbrokes to assure itself that the specific work in hand is effective in addressing the issues raised.
Notes to editors
- The Gambling Commission regulates gambling in the public interest alongside its co-regulators local licensing authorities. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. Subject to these overriding public protection objectives, as regulator of the National Lottery the Commission monitors and challenges Camelot to raise the maximum amount for good causes. The Commission also provides independent advice to government on gambling in Britain.
- The Commission and local licensing authorities are responsible for licensing and regulating all gambling in Great Britain other than spread betting, which is the responsibility of the Financial Conduct Authority (FCA).
- See the Terms & Conditions section of our website for information on legal advice.
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Posted on 28 October 2013