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Bank-Breaking Million Pound Penalties Imposed by the UKGC
By Shane Addinall Mar 12, 2022 IndustryThe British gambling regulator does not shy away from its duties to enforce regulatory conditions on operators in the UK. They make a point of taking transgressors to task and hitting them where it hurts most.Gambling regulators have the authority to enforce laws from their jurisdiction on all concerned parties, but few take as many providers to task as the UKGC. With one of the most established regulated gambling markets in the world, Britain’s Gambling Commission takes no prisoners when it comes to regulatory shortcomings.
Whether they reprimand the guilty party with a warning, fine, or combination, when we delve into their list of enforcements over the past decade, it becomes clear why peers revere the British Gambling Commission. Operators must answer for their lack of adherence or else the commission responds with a licence suspension to accompany an existing fine.
The UK Gambling Commission recently issued a bank-breaking fine to 888 for their regulatory failings, and this was not the first fine to reach millions in sterling. Sportsbooks and casino operators have all felt the wrath of the regulator. Here are the top fines issued by the UKGC, and then some.
Big Betway Fine
Global betting giant Betway takes first place with a dizzying ₤11.6 million penalty for what the UKGC described as failings linked to VIP customers. The company received this fine in March 2020 after an investigation revealed serious failings linked to 7 of their high-end patrons. They omitted obligatory protocols concerning social responsibility and anti-money laundering laws.
One of the red flags was when a VIP customer deposited ₤8 million and lost ₤4 million over the span of 4 years, yet Betway failed to confirm a source of funds. In another instance, a patron deposited and lost ₤187,000 in 48 hours and the operator failed to carry out effective social responsibility interactions.
888 in Trouble
Technically, this operator should place first on the podium as the commission has fined them twice in the past 5 years and their penalties exceed that of Betway’s single fine, by millions. 888’s latest enforcement from the commission was for ₤9.4 million and it includes an official warning from the UKGC plus extensive independent auditing. The operator’s first transgressions in 2017 cost them ₤7.8 million, which was a record-breaking fine at the time.
888 UK Limited is one of the largest gambling companies in Britain, which operates 78 websites in the UK. Their first offence in 2017 included significant flaws relating to social responsibility. According to the British regulator, 888 failed their most vulnerable customers from gambling-related harm. Chief executive at the UKGC, Sarah Harrison, commented at the time:
“Safeguarding consumers is not optional. This penalty package of just under £8million reflects the seriousness of 888’s failings to protect vulnerable customers.”
Findings revealed that a technical error in the operator’s self-exclusion program remained undetected for more than a year, which allowed players to deposit over ₤3.5 million in this period. They announced the most recent action against 888 this month and the commission seeks to establish whether the operator is suitable to uphold their objectives of keeping gambling crime-free.
The UKGC’s Million Pounds Penalty Club
Betway and 888 are far from being singled out by the British regulator. In fact, the list of offenders is too extensive to discuss here. The UKGC publishes every enforcement on their website for all to see. Several exceed one million pounds in single penalties, and if we look at the trend, the regulator is taking names.
The latest operator to receive more than a million reasons to follow regulations is Sky Betting and Gaming. Their penalty landed just above the mark at ₤1.17 million for sending marketing emails to self-excluded players. In February, UKGC slammed BetVictor with a ₤2 million fine, and Genesis Global Ltd must pay ₤3.8 million after having their licence suspended for three months.
Another eye-popping penalty went to Daub Alderney in September 2021. The commission issued an official warning and a fine worth ₤5.85 million linked to social responsibility and anti-money laundering failings. Related events occurred over two years ago, between January 2019 and March 2020. The commission’s comment on the fine indicated that companies are accountable for regulatory failures and breaches, even if they occurred before ownership.
Bank-breaking fines are nothing new in the British jurisdiction, with 2021 fines exceeding ₤30 million in total. Online casino Casumo, received a ₤6 million fine and In Touch Games faced a ₤3.4 million penalty, joining the million-pound penalty club in March 2021.
Hitting Where It Hurts
Through these and a multitude of other fines, the UK Gambling Commission epitomises the authority of a gambling regulator. In the face of pandemic complications and political uncertainty, players can rest assured that the UKGC ensures accountable services from operators, no holds barred.
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