UKGC investigation, PT Entertainment Services closure and Playtech’s responce

Systemic failures in player protection where among findings of an investigation into PT Entertainment Services (PTES), a Playtech company which run www.winner.co.uk and titanbet.co.uk. PTES surrendered its licence during the investigation which started in March 2019, after the UKGC being contacted by the family of a man who tragically took his own life in April 2017 aged 25.

The customer signed up for an account in December 2016, ultimately spending £4.5m on PTES’ Winner and Titanbet brands – losing £119,395 between 1 to 5 April 2017 alone – before committing suicide.

Although PTES stopped its business, the British Gambling Commission decided that it was in the public interest to complete the investigation and publish its findings, which include serious failings in the way PTES managed its social responsibility and anti-money laundering processes.

In relation to the young man in question, the Commission concluded that the operator failed to carry out any responsible gambling customer interactions even though it was aware that several of his debit card transactions had been declined. PTES also provided him with VIP status without verifying that he could afford to spend the amounts of money he was playing with.

UKGC CEO comment

Neil McArthur, the Commission’s Chief Executive, said: “This is a tragic case which came to light after I was contacted by the family of the young man who very sadly took his own life. I want to thank them for their bravery in bringing his case to our attention and we are grateful for the way they have worked with us in such terrible circumstances so that we could understand what happened.

Although PTES has ceased trading we decided to complete our investigation and publish our findings, as the lessons from this tragic case must be learned by all operators.

Our investigations into the role played by key individuals at PTES are continuing. As such, it would be inappropriate to say more about the specific case at this time.

This case – like so many others we have seen – illustrates why the management of so-called ‘high value customers’ has to change. Operators must do everything in their power to interact with customers responsibly. We will shortly be opening a consultation to make permanent changes to the way operators recruit and incentivise high value customers.”

Playtech’s statement

Following the public statement made by the Gambling Commission (‘the Commission’) related to their investigation between May 2015 and September 2017 into PT Entertainment Services Limited (‘PTES’), a subsidiary of Playtech, the Board of Playtech, led by new Interim Chairman Claire Milne, has undertaken a review of the Group’s position.

The Board of Playtech takes full responsibility and apologises for the regulatory breaches identified by the Gambling Commission regarding anti-money laundering and social responsibility. The regulatory breaches identified in PTES between 2015 and 2017 were not reflective of the high standards the Playtech Group set itself at the time and not representative of the high standards the Group delivers to its B2B partners today.

The Board extends its deepest sympathies to the family of Chris Bruney following the tragic event of his death. Claire Milne will be contacting the family to apologise personally for the regulatory breaches and to offer her condolences on behalf of the Board and everyone at Playtech.

As reported by the Gambling Commission, £619,395 has already been donated in recognition of PTES’ regulatory breaches to charities that are dedicated to reducing gambling related harm as well as supporting education and treatment. Following the review led by Claire Milne, who was previously Chairman of the Isle of Man Gambling Supervision Commission, the Board has collectively taken the decision to increase the amount to £3.5 million. This matches the figure that the Commission deemed appropriate had Playtech not taken action to close the PTES business, a decision which was made prior to the commencement of the Gambling Commission’s investigation as part of a strategic decision to focus the Group’s efforts on B2B activities in the U.K.

To further demonstrate Playtech’s commitment to raising industry standards and safer gambling the Board has decided to offer this further sum in support of the important work being undertaken by the Gambling Commission and other campaign groups in this area.

Following the review, the Board would also like to assure all stakeholders that decisive action was taken to address the breaches in PTES ahead of its closure in 2019. This was done to ensure that the Group took steps to ensure that similar regulatory breaches would not occur again and included key management and personal management licence holders leaving the business and PTES being brought under the Group compliance function in a restructuring of processes and oversight”.

Playtech interim Chairman comment

Claire Milne, Interim Chairman of Playtech, said: “The findings of this investigation do not reflect where Playtech stands today. But while the company has made many positive and important changes, we feel it is only right for us to recognise these historic failings by offering this increased amount. In speaking with many of our stakeholders, it was clear they felt the failings were not representative of the Playtech they know. Through this action, we want to send a message to them and the wider industry of who we are today and aspire to be.

Raising industry standards on safer gambling and being a leader in responsible business is central to our strategy as a technology partner. In my new role as Interim Chairman, I am fully committed to this continuing to be a key focus of ours going forward.”

In addition to the increased amount of £3.5 million, Playtech has committed £5m to five key areas to promote better understanding of ‘healthy online living’ and the relationship between mental health and online gambling.