UK slots operator fined $125K after exploitation accusations

A slot machine operator based in the UK, Merkur Slots UK, has been fined the equivalent of $125,596.50 by the Gambling Commission after a troubling exploitation case came to light.

In November 2023, 64-year-old gambler Wendy Hughes lost around $2,513 at Merkur Slots UK’s Stockport branch. Months after she was diagnosed with cancer, Hughes spent 16 hours at the location, even getting up at one point to get more money after her losses continued to mount. Her daughter, Jackie Olden, said that her mother died from cancer before the Gambling Commission issued the verdict.

Gambling Commission’s Chief Executive Andrew Rhodes said: “This was a clear-cut case of an operator failing to follow rules aimed at keeping consumers safe from harm.”

As a result, Merkur Slots UK was fined exactly £95,450 for social responsibility failings. According to a regulatory statement, the operator failed to interact with the customer as they gambled, breaching the Gambling Commission’s License Conditions and Codes of Practice. This states that the business has to interact with customers “in a way which minimizes the risk” of harmful gambling behavior.

Rhodes explained that there have been many such investigations into online gambling in regards to social responsibility and discussions on how to keep gamers safe, and that this should also include brick-and-mortar gambling operations.  It involves ensuring that there are policies and procedures in place that minimize harm as well as training employees on how to implement them properly.

What happened at Merkur Slots UK?

Instead of taking action to keep a potentially vulnerable player safe from what might have been flagged as addictive gambling behavior, it appeared as though staff encouraged her to keep going. Records show that Hughes ran out of money at one point and left to pull out more cash. Instead of interacting with Hughes in that moment, the staff didn’t offer any potential reconsideration as she continued to lose money.

Another concerning note was that the staff reserved Hughes’ favorite machine that night. By placing a “hold card” for her, the Gambling Commission explained that it “exploited” her irrational feelings that a long losing streak would eventually end in a jackpot. Due to all of the above factors, Merkur was said to have not implemented safety procedures appropriately.

“I’m happy they investigated Merkur. But after the devastation caused to our family, the size of this fine doesn’t go far enough,” Hughes’ daughter said. “This case emphasizes the urgent need for an independent gambling ombudsman so that customers have access to recourse when things go wrong.”

Laws and regulations requiring operators to interact with frequent and heavy players will continue to grow in prominence as more and more states in the US attempt to legalize online sports betting and gambling in an attempt to bring in new revenues. Gambling has also grown on Twitch, Kick, and other streaming platforms, showing that its continued rise is unlikely to slow any time soon.