William Hill is in the news and this time it is for the wrong reasons. The bookmarker recently submitted inaccurate information to the Gambling Commission, risking a penalty by the regulator. Following the realization that the bookmarker had provided data that would be misleading if used in industry analysis, the regulator had no option but to do away with the information.
The gambling regulator was at a loss since the data had already been used to analyze the impact of Covid-19 on the industry as a whole. This is however not the only betting operator that had been used by the commission as a source of data to generate the reports. Even though the data as given by Willian Hill is inaccurate, it is still not clear to what extent it altered the credibility of the final research results.
Starting from March 2020 when the pandemic hit hard, the Gambling Commission of UK had been releasing updates to make the public aware of the impact of Covid-19. The exercise began as a response to concerns that prolonged lockdowns were a huge factor in promoting online betting. To get a clear picture of the situation, it was important to get actual data from established firms such as William Hill.
The Gambling Commission was particularly interested in publishing data related to how much companies were losing in form of lost betting time. While the purpose was met as intended, the regulator discovered that they had been receiving incorrect information from William Hill.
In a statement published on December 23, the regulator informed the public that all data points that they had received from William Hill for the past 16 months were incorrect. Since they had embarked on this process to provide credible information, the regulator reported that they would take time to look through the data they received for re-analysis. This was going to take time and resources hence the commission’s position that they would not be publishing new information until February 2022.
During the entire period of the pandemic, the Gambling Commission provided regular bulletins in which they provided statistical data to support various claims. The analysis was performed on data that came directly from gambling companies. The data was meant to give the various industry stakeholders a clear picture of how the gambling sector had been affected by the pandemic.
Given that William Hill complied with the regulator to provide them with information as requested, they did demonstrate goodwill in the process. It is now upon the regulator to go back and review any bylaws that impose a regulatory consequence for furnishing wrong data. While there are no previous incidents on which a betting company had been penalized for misinforming the reports of the Gambling Commission, the regulator is authorized to punish such offenses.
The power of the commission allows it to revoke or suspend gambling licenses but it requires a serious malpractice for such action to be taken. Ordinarily, companies found to be in violation of gambling regulations get into agreements with the commission. This has been the case across the gambling industry worldwide and particularly in New Jersey’s rewarding bets market where many new operators have set up almost in tandem.
A fine is the most likely penalty for the predicament that William Hill happens to be in right now. While fines are in most cases large sums of money, they allow a company to carry on with their regular operations. A suspension on the other hand would mean putting a brand out of business for a while, a move that would lead to thousands of people losing their source of livelihood.
Even though William Hill is a big brand with a presence in many gambling markets around the work, a penalty would be a harsh blow to the operator. Given that the management is in the middle of a £2.2bn sale by 888 Holdings based in London. The London based operator is acquiring the business from a US casino services provider, Caesars Entertainment.
If the potential buyer views the penalty as a threat to its business, it might not end well for the management of William Hill. It would be equally hard to convince shareholders to stay if the management could give wrong performance data. Many will be wondering what else the provider has been lying about.
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The penalty wave
While it may seem that William Hill has committed a grave err, this is not the only case pending penalty review by the Gambling Commission. In the past, some gambling operators have been fined heavily for unrelated offenses committed against law and the customers. The regulator handles several cases of industry misconduct and is currently working on two cases.
The first offender is without a doubt William Hill, whose case we have already dissected; the other operator online casino SkyVegas, faces charges of breach of gaming self-exclusion. A property of Flutter, SkyVegas sent out a free spins promotion message to its customers, even those that had opted out of gambling related activities.
The gaming regulator is clearly working and this will definitely show in the government review of gaming regulations in general. For those who feel that there are other ways to compel compliance, here is the change to let your views be known. The gambling industry is in the meantime holding their breath as they await the findings and recommendations which are set to be announced in spring of current year.
Final Thoughts
The Guardian Newspaper has reached out to William Hill for an official statement regarding their current predicament but no response has been forthcoming. All that is left to do is waiting for the regulator to announce the fine that they consider to be equivalent to the offense committed. Time will tell what effect the penalty is going to have on William Hill’s business which will paint a picture of what the industry expects from its operators.
