The United Kingdom’s Gambling Commission said Gala Coral failed to stop a problem gambler from wagering with illicit funds.
UK.- Gala Coral agreed to pay nearly £880,000 (US$1.2 million) for its “systemic failure” to properly address money laundering and problem gambling.
According to the United Kingdom’s Gambling Commission, Gala Coral failed in its duty to stop a false VIP gambler from losing over US$1.2 million at its land-based betting shops and online casino platforms. The gambling addict was wagering with illicit funds acquired from a susceptible and “vulnerable adult.”
Gala Coral erroneously judged there was no urgency to complete a SAR taking the gambler’s word for granted instead. Furthermore, the Gambling Commission says the operator invited the addict to hospitality events over the next three months in an effort to learn more about the source of his funds. Friends attending the events with the suspect backed up the gambler’s claims that he was inherently wealthy, but the man turned out to be was an electrician.
“Gala Coral relied too heavily on uncorroborated information provided by the customer and his associates to explain the source of funds to gamble online and in-store,” said the Commission in a statement. “Gala Coral Group failed to conduct adequate inquiries about the source of funds . . . and placed over-reliance on the fact that the relevant payments were all made through one UK clearing bank account.”
As a result, Gala Coral will pay US$1,231,000 to the “vulnerable adult” and US$43,600 to the Gambling Commission to cover the costs of the investigation.