UK Gambling Commission Hands Hefty Fine to LeoVegasPublished May 2, 2018 by Florin P
LeoVegas was fined by the UKGC for misleading advertising and for failing to protect vulnerable customers.
LeoVegas is licensed and regulated by UK Gambling Commission, therefore subject to its rules. The Commission fined them £600,000 for improper handling of customers and misleading advertising. Apparently, more than 11,000 customers were not reimbursed when they decided to close down their online accounts and self-exclude. Furthermore, 413 players who chose to use this feature were allowed to continue gambling without even being approached by a casino representative.
The UK Gambling Commission determined that 41 advertisements approved by LeoVegas were actually misleading. This hefty fine is aimed at deterring other license holders from engaging in the practice of misleading customers. Neil McArthur, chief executive of the UKGC expressed his hope that other casinos and gambling operators will learn the lesson and raise their standards. The Commission also wanted to use this opportunity to showcase its resolve and prove beyond doubt that it won't make any compromises when it comes to the well-being of players.
LeoVegas Posted Encouraging Numbers in 2018
In spite of being fined by the GC, LeoVegas continues to post positive numbers and reports year on year growth. In the first quarter of 2018 revenue increased by 76% up to €77.4m and adjusted earnings also followed an upward trajectory. Operating profit fell but overall the adjusted earnings per share increased from €0.05 to €0.07. The cofounder of LeoVegas Gustaf Hagman expressed his enthusiasm for the manner in which the company grew in early 2018.
LeoVegas is expanding to Germany, where the group has secured a gambling license allowing it to cater for local players. In regard to the conclusions formulated by the UK Gambling Commission and the hefty fine, LeoVegas blamed affiliate marketing partners. Its representatives promise to make the necessary amends, rectify the errors promptly and reimburse eligible players. Moreover, they will donate the equivalent amount to charities that promote socially responsible causes.