William Hill hit with record £19.2m penalty by gambling regulator

William Hill have been hit with a record £19.2 million penalty by the Gambling Commission but have escaped having their licence suspended by the industry regulator.

The punishment, which eclipses the £17m action taken against Ladbrokes and Coral owner Entain last August, came after social responsibility and anti-money laundering (AML) failures described as "widespread and alarming" by the commission's chief executive Andrew Rhodes.

It also follows a £7.1m fine handed out to two Kindred Group brands last week, just as ministers are thought to be in the closing stages of finalising publication of the government's long-delayed gambling review white paper.

Among the examples of bad practice cited by the Gambling Commission were customers being able to open accounts and spend £23,000 in 20 minutes, £18,000 in 24 hours, and £32,500 over two days respectively, all without checks being made.

The commission also found customers able to deposit large amounts without being subject to AML checks, with one able to spend and lose £70,134 in a month, another to lose £38,000 in five weeks and another to lose £36,000 in four days.

The £19.2m penalty, made up of separate payments from William Hill's online and betting shop operations and the online Mr Green brand, will go to socially responsible purposes such as research and treatment of gambling-related harm.

Rhodes said: "When we launched this investigation the failings we uncovered were so widespread and alarming serious consideration was given to licence suspension.

"However, because the operator immediately recognised their failings and worked with us to swiftly implement improvements, we instead opted for the largest enforcement payment in our history."

The five biggest Gambling Commission enforcement actions

£19.2 million William Hill Group, March 2023

£17 million Entain, August 2022

£13 million Caesars Entertainment, April 2020

£11.6 million Betway, March 2020

£9.4 million 888, March 2022

The Gambling Commission's latest action is the 26th enforcement case concluded by the regulator since the start of the last year, with operators paying more than £76m.

Rhodes said: "In the last 15 months we have taken unprecedented action against gambling operators, but we are now starting to see signs of improvement. There are indications that the industry is doing more to make gambling safer and reducing the possibility of criminal funds entering their businesses.

"Operators are using algorithms to spot gambling harms or criminal risk more quickly, interacting with consumers sooner, and generally having more effective policies and procedures in place."

The cases which led to the punishments occurred between 2020 and 2021, before 888 Holdings completed its takeover of William Hill last year.

However, 888 has itself twice been the subject of significant enforcement action by the Gambling Commission, paying a £9.4m fine in March last year and a £7.8m penalty package in 2017 for failing vulnerable customers.

In January, 888 also announced the departure of chief executive Itai Pazner along with an internal investigation into its AML processes for VIP clients in the Middle East.

An 888 spokesperson said: "The settlement relates to the period when William Hill was under the previous ownership and management. After William Hill was acquired the company quickly addressed the identified issues with the implementation of a rigorous action plan.

"The entire group shares the Gambling Commission's commitment to improve compliance standards across the industry and we will continue to work collaboratively with the regulator and other stakeholders to achieve this."

It had already been announced that William Hill had put aside £15m due to the licence review but there had been speculation they could be facing a penalty as high as £30m and so David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said the eventual figure was at the lower end of expectations.

However, he added in a note: "The quote from Andrew Rhodes about a licence suspension being considered is quite alarming, as are some of the individual cases highlighted in the statement."

Read these next:

'Compulsive gambler' says Star Sports ignored social responsibility as he claims £48,000 losses in court case 

Gambling Commission hit Kindred Group with penalties totalling £7.1 million 

Get full access to Members' Club Ultimate Monthly now with 50% off for three months 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.