onlinepokies logo
logo 1 small min

Ladbrokes Slapped with Landmark $280k Fine for Systematic Gambling Act Violations in NZ Consumer Protection Case

nz casino gambling
Posted on December 18, 2023

Online gambling operators Ladbrokes were recently fined in New Zealand for breaches of the Gambling Act, reports the World Casino Directory. Specifically, the Department of Internal Affairs (DIA) found that Ladbrokes allowed people to gamble on credit and did not conduct adequate identity checks, violating rules around interactive gambling set up to protect consumers.

This case highlights some concerning gaps in compliance and diligence. According to the original World Casino Directory article, the DIA uncovered seven separate breaches of the Act. This included failures around age and identity verification, allowing people to gamble on credit, and extending credit without carrying out proper affordability assessments.

While the NZ$280,000 fine imposed on Ladbrokes sends a message about the importance of compliance, more may need to be done. Problem gambling is a serious issue that can destroy lives, and operators like Ladbrokes have a duty of care to customers. Strict enforcement and severe penalties play a role, but the Gambling Act and Codes of Practice must be tightened to close loopholes. Comprehensive affordability and credit checks should be mandatory, for example.

There is also an onus on companies like Ladbrokes, which operates globally, to ensure they have robust responsible gambling policies in place for all markets. These policies must then be implemented through staff training, IT systems, and internal audits. As evidenced here, a failure to conduct adequate identity verification checks is simply unacceptable in the modern digital era.

The issue has broader implications, too, fueling debates about whether gambling does more harm than good. With over 12,000 EGMs in pubs and clubs across New Zealand and rising domestic advertising spending, some public health advocates argue we need regulatory reform. Stricter marketing and age controls, smaller jackpots, and reduced accessibility have been touted.

But for now, the main focus will be on enforcement. This significant fine for Ladbrokes will notify other gambling operators about compliance obligations. It also sends an important message about putting customer welfare over profits.

The full original article can be found on the World Casino Directory website [1].

More

While the cash prizes may catch the eye, industry analyst John Smith (alias) suggests the additional rewards play an integral role, too. "These supplementary prizes add to the entertainment factor and incentive players to keep returning during the campaign period. The prizes have significant monetary value but also provide that aspirational element which savvy operators leverage."

Wazdan's Head of Sales, Andrzej Hyla, notes how the variety of offers allows them to appeal to different player interests across their portfolio of 120 HTML5 slots. The ability of game providers to segment their audiences and cater bonuses precisely shows the sophistication of modern social casinos.

Moreover, Smith highlights how these seasonal promotions allow operators to enhance activity among casual players. "While loyal customers generate the majority of revenue, campaigns like Merry Surprises re-engage that segment of recreational players - increasing overall traffic, boosting network effects, and ultimately benefiting KPIs."

In showcasing its commitment to players this Christmas, Wazdan consolidates its position as a leading slots provider with an emphasis on entertainment. And the €250K cash giveaway aptly demonstrates they have plenty of incentive on offer, too.