UKGC and bet365 Reach £582,120 Settlement Over AML Issues
In a recent announcement, the UK Gambling Commission (UKGC) revealed that it has imposed a penalty of £582,120 on bet365 for alleged breaches of social responsibility and anti-money laundering (AML) regulations. The penalty will be paid by two entities operating under the bet365 brand: Hillside (UK Gaming) ENC and Hillside (UK Sports) ENC.
Hillside (UK Gaming) ENC, responsible for the brand's casino and bingo products, will pay £343,035, while Hillside (UK Sports) ENC, operating sports betting products, faces a penalty of £239,085.
Kay Roberts, Executive Director of Operations at the UKGC, emphasised the importance of maintaining high standards in the gambling industry. She stated, "We expect high standards from operators in terms of keeping gambling safe, fair and crime-free, and will always take action to correct any failings." Roberts warned that repeat failures would result in escalating regulatory action.
Proceeds from the settlement will be allocated to socially responsible causes, reinforcing the UKGC's commitment to enhancing the environment for safe and responsible gambling.
The compliance assessment review conducted in March 2022 identified several shortcomings, including social responsibility failures and AML deficiencies. The UKGC highlighted issues such as inadequate customer interaction and ineffective Early Risk Detection Systems.
Regarding AML failures, the regulator noted shortcomings in customer due diligence processes, Know Your Customer (KYC) triggers, and financial sanctions checks. Independent verification checks were also found to be lacking, contributing to the overall penalty.
One notable concern raised by the UKGC was the failure to differentiate between "risk" and "at-risk" players in internal documentation, indicating a broader need for improved risk assessment practices within the industry.
This penalty against bet365 follows similar enforcement actions by the UKGC, including a £6 million penalty issued against Gamesys earlier this year. These actions underscore the regulator's commitment to enforcing regulatory standards and holding operators accountable for their compliance obligations.
Mark Patterson is the news writer at CasinosInCanada who covers the latest developments in the iGaming industry, including casino launches, regulations, and market updates.
These enforcement actions highlight the critical need for operators to prioritize compliance and implement robust risk management practices. Hopefully, bet365 and other operators will take this penalty as a wake-up call to enhance their regulatory frameworks and prevent future breaches.
I'm glad to see the UKGC allocating the proceeds from the penalty to socially responsible causes. It's essential that regulatory actions not only hold operators accountable but also contribute to strengthening measures for safe and responsible gambling.
It's concerning to see such significant breaches of social responsibility and AML regulations by a prominent operator like bet365. The UKGC's swift action sends a strong message about the importance of upholding integrity and protecting consumers in the gambling industry.