The UK Gambling Regulator Faces a £6 Million Penalty for its Dealings with Gambling Service Provider Gamesys
The UK Gambling Authority, known as the Gambling Commission, has slapped a £6 million (around €7 million) penalty on gaming corporation Gamesys for lapses in social responsibility and anti-money laundering (AML) measures. These shortcomings were spotlighted during a compliance review in May 2022.
Gamesys Facing Penalty and Ongoing Examination
statement from the UK Gambling Commission, not only has to pay a fine but will also be subject to further checks. Gamesys did not adequately question the source of its players' funds. Additionally, higher deposits and withdrawals were transferred than allowed by the provider's guidelines.
As per a statement from the UK Gambling Commission, Gamesys is not only liable to pay the fine but will also face further scrutiny. The company did not properly scrutinize the sources of its players' funds. Additionally, larger deposits and withdrawals were processed beyond the allowed limits set by the provider's guidelines.
iGB
The inspection will be carried out by an external entity, in line with the regulations for tackling money laundering and ensuring responsible gambling. Kay Roberts, Director of Operations at the UK Gambling Commission, commented on Gamesys' penalty:
fined £1.2 million by the UK Gambling Commission for failures in social responsibility and anti-money laundering. There were three incidents where individuals used stolen money to gamble on Gamesys' platforms, and the operator failed to deter these players despite signs of problematic gambling behavior. Last year, the gambling provider
Our primary goal as regulators is to ensure that operators adhere to policies and procedures that ensure gambling is fair, secure, and devoid of crime.[...] We take this responsibility extremely seriously. Whenever we detect lapses in policies and procedures, the company can anticipate robust regulatory action.– Kay Roberts, Director of Operations at the UK Gambling Commission, iGB
Lindar Media was also fined £690,974 (approx. €798,282) by the UK Gambling Commission for failures in social responsibility and anti-money laundering. In June 2023, the William Hill group
Gamesys: A Major Player in the UK Gaming Sector
paid a £19.2 million (€22.3 million) fine for similar breaches.
Gamesys was established in 2001 by entrepreneurs Andrew Dixon, Noel Hayden, and Robin Tombs. In 2013, Gamesys purchased the provider Virgin Games. In 2019, Gamesys was bought out by the JPJ Group, and the company's name was changed to Gamesys Group. Today, Gamesys manages 16 gaming sites and is one of the leading gaming providers in the UK.
Prior Penalties for Gamesys
In 2019, Gamesys was fined £1.2 million by the UK Gambling Commission for failures in social responsibility and anti-money laundering. There were three cases where individuals used stolen funds to gamble on Gamesys' platforms, and the operator failed to deter these players despite displaying indicators of problematic gambling behavior. Last year, gambling provider Lindar Media was also fined £690,974 (approx. €798,282) by the UK Gambling Commission for similar lapses in social responsibility and anti-money laundering. In June 2023, the William Hill group paid a £19.2 million (around €22.3 million) fine for similar offenses.
Despite operating primarily in the UK, online casinos like Gamesys may face regulatory scrutiny and penalties for failing to adhere to anti-money laundering and social responsibility measures. For instance, German online gamblers who use Gamesys platforms might be interested to know that the company was fined €7 million by the UK Gambling Commission due to inadequate checks on the sources of players' funds and exceeding deposit and withdrawal limits.
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