32Red handed £2 million penalty for failing to protect high-staking customer

Online bookmaker 32Red have been fined £2 million by the UK Gambling Commission after failing to protect a problem punter.

Between November 2014 and April 2017, the customer was allowed to deposit a total of £758,000, without the appropriate social responsibility and money laundering checks carried out.

Instead of checking whether the customer needed help with their problem, it was revealed that 32Red staff instead applied bonuses to the customer's account – despite 22 instances indicating he was a problem gambler.

The customer had told staff they were frustrated with their losses, and were chasing them. They also expressed concerns about the amounts they were spending.

It was revealed during the investigation that 32Red failed to check that the customer could afford their level of spending.

The customer's account was not reviewed until January 2017, as a result of unusual play suggestive of possible problem gambling – a seven-figure win, which was instantly replayed.

Gambling Commission executive director Richard Watson said: "Instead of checking on the welfare of a customer displaying problem gambling behaviour, 32Red encouraged the customer to gamble more – this is the exact opposite of what they are supposed to be doing.

"Operators must take action when they spot signs of problem gambling and should be carefully reviewing all the customers they are having a high level of contact with.

"Protecting consumers from gambling-related harm is a priority for us and where we see operators failing in their responsibility to keep their customers safe we will take tough action."

Barton investigated for betting on a Celtic match with Betfair

Rangers midfielder Joey Barton is reportedly being investigated for alleged betting on a Celtic match with Betfair, that is said to have been placed on his personal account.

The Scottish Football Association does not allow players, coaches, club officials and referees to bet on any football globally.

Barton is already in hot water with his club after picking up a three week ban for a recent training ground bust up.

The row is said to have been with manager Mark Warburton after Rangers, who are sponsored by 32Red, suffered a heavy 5-1 defeat in the Old Firm derby. The bet in question was allegedly placed by Barton on Celtic to lose by at least three goals in their following match to Barcelona; a bet he’d have won if so as the Bhoys went on to be hammered 7-0.

The Gambling Commission are now believed to be investigating the matter, and that both Rangers and Barton have been notified that the probe has been launched.

The Commission will present its case to the SFA. The report will then be presented to compliance officer Tony McGlennan, and it’ll be McGlennan that will decide on the outcome for Barton.

32Red to sponsor Rangers

32Red Plc has signed another new shirt sponsorship deal, this time penning a three year agreement to sponsor Rangers Football Club, commencing in the 2014/15 season. The agreement provides 32Red with shirt sponsorship, extensive visibility in the stadium and across the Club’s digital and media platforms and access to Scotland’s largest football fanbase.

Ed Ware, CEO of 32Red commented: “We are delighted to be working with Rangers Football Club and look forward to being part of the continued rise and return of the Club. 32Red has a history of successful football club sponsorship deals and we look forward to the next three seasons and our new and proud association with a club with such heritage and potential.”

Rangers Chief Executive Graham Wallace commented: “We are delighted to announce today a three-year shirt sponsorship deal with 32Red, the UK’s premier online casino company. We look forward to working closely with them over the next three seasons in a partnership that we believe will be hugely beneficial to both parties.”

32Red partners ITV for exclusive online slot launch

Gibraltar-licensed online gaming operator 32Red has signed a three-year deal with UK broadcaster ITV to launch an exclusive new online slot game based on popular reality TV show I'm a Celebrity... Get Me Out Of Here!

32Red signed the agreement with ITV’s Brand Extensions division, which was established to help the broadcaster monetise its most popular programmes.

32Red’s chief executive Ed Ware said his company was “working closely with ITV on a number of initiatives,” adding he was “very excited” about launching the new online slot, which has been developed by Microgaming and is expected to go live on 32Red.com on Thursday, ahead of the show’s return to UK TV screens later this month.

“Obviously the programme is extremely well known and the character of the show converts well into the exclusive slot game we are launching later this week,” Ware explained. “It's another landmark alliance for 32Red and part of our plan to invest in the brand and make positive but relevant associations with highly credible partners.”

I’m a Celebrity … Get me out of here! is a reality TV show in which eight to twelve celebrities live together in a jungle environment for a few weeks without any luxuries, with the winner crowned king or queen of the jungle. The first episode aired in the UK in 2002 with the thirteenth series of the show set to begin later this month.

The new slot game uses iconography from the TV show, as well as the theme tune and other features. Aside from the regular game play, players have the chance to win up to 50 free spins when 3, 4 or 5 scatters appear on screen, triggering a Bushtucker Trial style choice of creepy insects to decide on the free spins multiplier.

32Red’s head of marketing Mark Quayle asaid that the company was “confident that the association with such a strong brand will prove to be a huge success for us.”

“The slot game will be available for casino, poker and bingo players at 32Red to ensure all of our players can sample the thrills of the jungle,” he said.

The partnership marks ITV’s latest online gaming partnership, with the company already working with operator NetPlay TV on the casino site Jackpot247 which features both companies’ branding, and ITV Bingo, managed by Foxy Bingo operator Cashcade and using software provided by 888’s B2B arm Dragonfish.

William van Rest, ITV's director of commerce and ventures, said: “ITV is pleased to be working with 32Red on this fantastic brand extension for I'm a Celebrity.. Get Me Out Of Here! The slot design brings the jungle and its creepy creatures alive with a great new game for 32Red players. We are sure it will be a very popular addition to the 32Red offer.”

It is the first instance of 32Red launching new content with one of its partners, with the majority of its previous deals involving advertising opportunities. The operator sponsors a number of horse racing events, and is an active football sponsor currently working with Italian club Bologna FC. It also sponsors the Late Night Film on UK TV channel Film4.

Swansea head for top ten finish as they exit sponsorship deal

Swansea City have plenty to be smiling about. Not only the prospect of mouth-watering derby games against arch rivals Cardiff but a top ten Premier League finish.

City currently lie 9th in the table despite three straight defeats, a point ahead of Fulham and four ahead of 11th placed West Ham.

Success on the field also creates opportunities off it, and as part of their developing off-field strategy current main sponsor, online gaming operator 32Red has agreed to end its shirt sponsorship deal with the Welsh club following the conclusion of the current season in May.

Gibraltar-based 32Red is the firm behind the online casino at 32Red.com and has served as the Welsh club’s primary shirt sponsor for four years. Its current deal was set to run until the conclusion of the 2013/14 season.

However, in a joint statement the pair explained that the decision had been taken in order to allow Swansea to ‘engage with third parties who may be able to assist in the physical development of the stadium and support the club in its next phase of growth’.

“It's been a fantastic relationship with the Swans,” said Ed Ware, Chief Executive Officer for 32Red.

“Our association has coincided with Swansea City's most successful period ever so far. We will look back on the partnership fondly and wish the club the very best of luck for the future.”

The original sponsorship deal with 32Red was signed in June 2009 when Swansea were a mid-table Championship club. They have since managed to secure promotion to the top-flight for only the second time in their history and celebrated their 100th birthday this season by winning the Capital One Cup.

“I’d like to place on record the club’s enormous thanks for the support that 32Red has given us over the last four years,” said Leigh Dineen, Vice-Chairman for Swansea City.

“It has been a pleasure to deal with and played an important factor in our progress. I feel we have some exciting opportunities in the marketplace and have agreed to conclude the agreement with 32Red one year early and on friendly terms.”

32Red announce booming profits

32Red has announced their 6 month results and are at a record for the Gibraltar based online operator, with total Gross Win up 50% to £16.5m (2011: £11.0m) in the first six months of 2012.

The results represent a sixth successive 6 month period of record revenues for 32Red, here are some of the highlights:

Casino Performance:

Gross Win (revenue) £14.5m, up 52% on 2011
Active casino customers* of 31,722 up 81% on H1 11
Casino player yield £457* (H1 11: £543)
New Casino players 18,724*, up 93% on H1 11
Casino cost per acquisition*: £166 (H1 11: £173)

Current Trading and Outlook for the Full Year

Gross Win for the twenty days to 20 July is up 28% on the corresponding period in 2011. The strong H1 trading performance and current trading is likely to see the Company deliver revenues that are ahead of current market expectations for 2012. The Company continues to invest in marketing and confirms that profits remain in line with management expectations.

Commenting on the performance, Ed Ware, CEO of 32Red, said:

“The continued growth in revenues, particularly in light of strong comparatives, is testament to the strong new player recruitment resulting from more investment in our main market, the UK. We aim to continue in this regard as well as taking our first measured steps in entering the Italian market. We look forward to launching 32Red.it during the second half of the year and welcome the recent decision by the Italian authorities to commence the procedures to approve online slots games from December 2012 onwards.

”While we recognise the potential for economic and regulatory uncertainty across Europe, we look forward to further progress during the second half of 2012.”

32Red live with GBE iBroker sportsbook

Online casino 32Red has launched its 32RedBet sportsbook, becoming the third white-label licensee to go live with Global Betting Exchange’s iBroker sportsbook solution.

32Red chief executive Ed Ware said: “iBroker offered us a number of compelling reasons over its competition such as, but not limited to, its ability to hedge into the Betdaq betting exchange, its simplicity to integrate into our existing platforms, competitive pricing and cost-effectiveness. It allows us to operate on a zero-risk basis, if needed.”

Brian O’Sullivan, chief executive of Global Betting Exchange (GBE), also the operator of the Betdaq betting exchange, added: “We are delighted with the launch today of 32Redbet. We have worked closely with Ed Ware and his team over the past few months to deliver a unique low-cost, no-risk sportsbook built on GBE's iBroker platform. 32Red is one of the most respected names in online gaming and I am confident Ed and his team will make a great success of this new product.”

Ware said he hoped the sportsbook would increase the stickiness of the 32Red offering. “It minimises the danger of existing 32Red players using competitor betting services and then remaining with that competitor for all their betting and gaming needs. Next year’s World Cup was also at the front of our mind here. We also believe that offering sports betting will increase the return on investment of existing promotions and potentially allow us to target other niche market areas.”

3D poker room PKR went live with the GBE-powered sportsbook solution in September of this year, followed in November by AsianLogic.

32Red issues 2009 profit warning

Despite recording the company's highest ever quarterly revenue figure in the third quarter, 32Red plc said that profits for the full year 2009 will be significantly below market expectations, with player yields during the second half of the year unlikely to overcome the challenging trading conditions experienced in the first half.

In a trading update released Friday, 32Red said that third quarter revenues were the "highest ever experienced" by the company, up 11% on last year and an increase of 24% quarter-on-quarter, reflecting the continued growth of the company's online casino which saw revenues gain 10% against last year and 21% on the previous quarter.

The company said that player activity levels were also strong during the third quarter, with active casino players up 16% on the corresponding period last year, although the growth in active players was partially offset however by reduced player yields.

Despite the growth in revenues and active players however, 32Red said that it is unlikely that the company will see sufficient growth in player yields during the second half of 2009 to be able to overcome the effect of the challenging trading conditions experienced in the first half the year, when revenues dropped 11% to £5.8 million and profit fell 70% to £233,777.

As a result of these factors and an unusually high level of customer wins in October, the company's Board now believes that profit for the full year will be significantly below market expectations.

32Red said that it has considered a reduction in marketing spend in order to maintain its short-term profitability, but has concluded that this would not be in the best interests of the company.

The Board added that it remains confident that the significant ongoing investment in marketing and in new technology during the year positions the company well for 2010 and beyond.

32Red sells Bet Direct to Stan James

32Red has sold its Bet Direct sportsbook to Stan James for £5.75m, as revealed by eGaming Review at the end of September.

The news came with the publicaiton of the firm’s results for the first half of the year which showed total revenues increasing of 47.2% to £9.2m. However, casino revenues were almost static and poker revenues fell nearly 4% over the period.

32Red bought Bet Direct in June 2006 from Sportech for £12.5m. The company said it will use proceeds from the sale to increase the profile of its casino, poker and sportsbetting products and expansion into new territories. Bookmakers Stan James and Boylesports were reportedly in the running to buy Bet Direct, but Boylesports chief executive Daniel O’Mahoney counted his company out of the race late last week.

In its statement, 32Red said that further to a strategic review of both brands and a review of the potential business development opportunities for the company, it had accepted the offer of £5.75m for the intellectual property and “certain assets” of the Betdirect business. Chief executive Ed Ware said: “The sale of the Bet Direct brand allows us to channel our marketing and management focus on the core 32Red brand.”

Ware added that mobile gaming services and an integrated bingo offering will be added to the product range in the final quarter of this year.

32Red reported casino revenues of £4.6m for the six month period to the end of June, a 1.7% increase on the same period in 2006, and a drop in poker revenues of 3.8% over the six month period in 2007, compared to revenues of £0.6m in 2006.

The number of active customers grew to 75,911, compared with 44,539 in 2006.

Chief executive Ed Ware said: “Whilst the recent UK legislative changes effective from 1 September 2007 allow greater access to the UK market, we have identified a number of new territories into which we intend to market the 32Red brand.”

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Bet Direct ‘could fetch £6m’

32Red’s up-for-sale Bet Direct operation could fetch £6m (US$12m), valuing the business at less than half of the price it fetched when it was sold by Sportech in May of last year, according to sources.

It is thought that Irish-based bookmaker Boylesports remains the favourite to snap up the business, though Stan James and Chronicle bookmakers (half-owned by Dermot Desmond, the Irish billionaire and owner of Betdaq) are also rumoured to be in the hunt. The deal could well go through within the next two weeks.

The Aim-listed operator confirmed a fortnight ago in a statement to the London Stock Exchange it was in talks to sell Bet Direct after eGaming Review broke the story that the loss-making sports-betting operation was on the market.

32Red bought the business from Sportech in May 2006 for £12.5m.

Boylesports gave an official no comment, as did Stan James, which was thought to be among the original bidders for Bet Direct when it was sold by Sportech.

No-one at Chronicle was available for comment.

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