Gala Coral pays out USD 1.284M over gambler who stole to feed habit

The UK Gambling Commission said Gala Coral had failed in its duty to prevent money laundering and problem gambling, saying its safeguards to prevent both were “not adequate”.

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The bookmaker will pay £846,000 to the victim of the crime and £30,000 to “reflect the cost” of the commission’s investigation

 

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It said the bookmaker had failed to look into the source of the wealth of a man who gambled nearly £850,000 in its shops and online. Paddy Power "encouraged gambler until he lost his home, jobs and family."

Gala Coral relied on “uncorroborated” suggestions that the man was independently wealthy, when he had stolen the money from a “vulnerable” person.

The bookmaker will pay £846,000 to the victim of the crime and £30,000 to “reflect the cost” of the commission’s investigation.

The perpetrator of the crime, who was a customer of Gala Coral between 2012 and 2015, was jailed for three years over the theft.

The settlement is part of an effort by the commission to crack down on bookmakers who turn a blind eye to money laundering and problem gambling.

Gala Coral also promised to “take steps to improve its anti-money-laundering and social responsibility processes”.

Earlier this year Paddy Power was forced to pay out £280,000 after the commission found it had encouraged a problem gambler to keep betting until he lost five jobs, his home and access to his children.

The Commission is understood to be taking a tougher line under it new chief executive, Sarah Harrison. Richard Watson, the commission’s program director, said: “We expect the industry will learn the lessons from this case, as it is their responsibility to keep crime out of gambling and protect vulnerable people from harm.”

“We know that Gala Coral have reflected heavily on this case and have assured us of actions they have taken to address the failings,” he added. “Operators must proactively monitor customers to keep gambling safe and free from crime.”

But campaigners for more measures to crack down on problem gambling said the settlement was evidence that Gala Coral had not learned from previous failings. “We were told three years ago by the Gambling Commission that Coral have learned their lesson after a customer laundered nearly £1m through their Fixed Odds Betting Terminals (FOBTs),” said Matt Zarb-Cousin, a reformed gambling addict and spokesman for the Campaign for Fairer Gambling.