Reduced sanction for AML and social responsibility breaches by Aspers

On 4 February 2021, the Gambling Commission (the “Commission”) announced that it had imposed sanctions on Aspers Stratford (“Aspers”) as a consequence of its mishandling of customers from both anti-money laundering and social responsibility perspectives. The financial penalty imposed was reduced significantly following representations by Aspers as to its financial hardship in light of COVID-19.

Background

The Commission commenced a regulatory investigation in December 2018 into Aspers’ treatment of its customers following the suicide of a VIP customer in November 2018 after his visit to an Aspers casino.

An internal report (“Internal Report”) was prepared by Aspers and supplied to the Commission. The Internal Report examined Aspers’ interaction with the deceased and the adequacy of its policies and procedures. The Internal Report highlighted failings regarding the deceased specifically, as well the suitability of its policies and procedures more generally.

In September 2019, the Commission commenced a licence review into Aspers’ compliance with its regulatory obligations under the Licence Conditions and Codes of Practice (“LCCP”) and found Aspers to be in breach of both its anti-money laundering and social responsibility obligations as follows:

• Licence Condition 12.1.1 and Ordinary Code Provision 2.1.1: Prevention of Anti Money Laundering and Terrorist Financing

• Licence Condition 5.1.1: Cash and Cash Equivalents

• Social Responsibility Code Provision 3.4.1: Customer Interaction

Sanction

As a result of the findings, the Commission imposed the following sanctions:

1. warnings under section 117(1) of the Gambling Act 2005 (“the Act”) in respect of each of the breaches of the LCCP; and
2. a financial penalty pursuant to section 121(1) of the Act in the sum of £1,800,000.

The financial penalty was however reduced to just over a third of this sum (£652,500) as a result of evidence supplied by Aspers regarding its financial position, which had been particularly impacted by the COVID-19 pandemic.

Additionally, Aspers agreed to divest itself of the gross gambling yield in the sum of £78,233 relating to failings in respect of the deceased and another customer.

The Commission also directed Aspers to undertake an independent audit of its policies and procedures within six months to ensure that the recommendations in the Internal Report were implemented and effective and to identify any further recommendations.

Comment

The circumstances surrounding this sanction are tragic and illustrate the risks of gambling related harm going undetected. Operators are again reminded of the need to carefully consider the requirements of the LCCP and the Commission’s guidance and lessons learnt and to reflect on whether their policies and procedures are effective.

Neil McArthur, the Commission’s Chief Executive, emphasised: “this case highlights why all operators must not only have clear policies in place, but that they are up to date and implemented by staff who have the correct training to spot signs of gambling harm or unusual patterns of play”.

Pursuant to section 121(7) of the Act and the Commission’s Statement of Principles for Determining Financial Penalties, the Commission will take into account the financial situation of the licensee where this information is provided to the Commission. This case highlights the significant discount that may be applied as a result of providing evidence of the financial circumstances of the licensee.

The Commission’s public statement is accessible here.

Co-authored by Jana Blahova.