THURSDAY’S package of fines levied against betting company 888.com totalled £7.8m, a remarkable increase on the previous biggest comparable fine of £846k which Gala Coral were forced to pay after failing to take steps to identify and rein-in a problem gambler who stole hundreds of thousands to feed his addiction and ended up serving time in jail.

In the latest case, there is a strong parallel, with a customer allowed to wager an average of £100k per month for over a year, losing heavily and ending up stealing from his employer in a vain attempt to recoup losses.

The Gambling Commission found that the lack of interaction with the customer, given the frequency, duration and sums involved in the gambling, raised major concerns about the firm’s commitment to safeguarding customers at risk of gambling harm.

At least as significant, in terms of the punishment, was that approximately 7,000 customers who tried to bar themselves from betting through a self-exclusion scheme were still able to access the company’s bingo offering, and many lost money by doing so.

Much of the fine imposed was designed to reimburse victims for money lost through 888’s failure to protect them, but the largest portion will go to what the Commission described as a “socially responsible cause to invest in measures to tackle gambling-related harm.” There can be no mistaking the intent in Sarah Harrison’s words, when she says that safeguarding consumers is not optional, and ongoing failures in this area will surely see other companies hit with similarly stiff fines.

This isn’t a case of government flexing its muscles, or looking to swell the coffers of the exchequer, and the fact that so much of the financial penalty is being used for reparation and tackling problem gambling and the issues exacerbated by such behaviour shows that the Gambling Commission takes its powers to protect vulnerable consumers extremely seriously, and that is the real subtext beneath the headlines.

The issue of FOBTs is another which needs addressing, with a much-needed review put on ice at the time of the UK general election, but due to be completed in the autumn.

Whether a huge reduction in stake is the answer to an apparent mass addiction to the machines is open to debate, but there can be no doubt that many of those who gamble on FOBTs exhibit worrying signs of problem gambling which is exacerbated by the solitary nature of the activity.

There are rules in place to help shop staff to intervene where they feel customers are out of control, but I’ve spent time in many betting shops in the 15 years since the machines first became part of the furniture – I’ve seen countless punters lose their cool and their cash playing roulette, but have never seen a single intervention, which is hardly surprising given the thankless nature of such a task.

GAMBLING ACTIVITY

Whatever happens with the FOBT review (which is outside of the scope of the Gambling Commission), operators have been warned in no uncertain terms that recent judgements against the likes of Coral and Paddy Power regarding the identification of problem gambling activity would form the basis of future judgements, with the proof coming in this latest case.

The message is clear that there are clearly discernible signs in the staking behaviour of customers as to whether they are in control of their betting, and that not asking questions of high-staking punters as to the pattern of their gambling activity and source of funds is a serious dereliction of duty on behalf of the operator.

Previous judgements have involved punters betting wildly beyond their means with the result that lives have been irreparably damaged, and bookmakers can no longer shrug their shoulders and mutter “how were we to know?”

It’s a huge fillip for the gambling industry that such strong precedents are being set, and any responsible and socially aware betting company should be delighted that the industry is being so robustly policed. That is a deterrent to any new operator looking to make a quick buck from the vulnerable, and will serve to see that those operating within a well-regulated environment can do so with greater trust from their customers.

The increase in problem gambling in recent years has much to do with a breaking down of advertising barriers and the mushrooming of online gambling outlets.

Many of these are, knowingly or unknowingly, making profit from a growing social malaise, and it’s about time this was dealt with comprehensively.