The UK Gambling Commission is taking widespread regulatory action against online casino operators and senior management.
Online casino companies and their senior management have faced widespread action from the gambling regulator as part of an ongoing investigation into the way the industry combats problem gambling and money laundering.
Nearly £14m will be paid by three companies as a result of their failings to put in place effective safeguards to prevent money laundering and keep consumers safe from gambling-related harm. Following licence reviews, the Commission has ordered Daub Alderney to pay a financial penalty of £7.1m (as previously announced), Casumo has been ordered to pay a financial penalty of £5.85m and Videoslots will pay £1m in lieu of a financial penalty.
Another company - CZ Holdings - will no longer be able to provide gambling services to consumers in Britain as it surrendered its licence after a licence review had been commenced. Nine other operators have been issued with Advice as to Conduct letters and a further six are still under investigation.
The Commission has also taken regulatory action against the individuals responsible for the failings. Three Personal Licence Holders have now surrendered their licences, four have been issued with a warning and two have been issued with Advice as to Conduct notices. A further three individuals who hold PMLs are still under investigation.
Neil McArthur, Commission CEO, said: “I hope today’s announcement will make all online casino operators sit up and pay attention, as our investigations found that a large number of operators and their senior management were not meeting their obligations.
“It is not enough to have policies and procedures in place. Everyone in a gambling business must understand its policies and procedures and take responsibility for properly applying them.
“We expect operators to know their customers and to ask the right questions to make sure they meet their anti-money laundering and social responsibility obligations.”
A spokesperson for Videoslots said: "We have entered a regulatory settlement with the Gambling Commission of Great Britain and agreed to make a voluntary payment of £1m in lieu of a financial penalty. It is important to make clear that the regulatory settlement is distinct from a package of formal sanctions, and as such the payment is not a fine and is not recorded as a sanction. The payment will go to a National Responsible Gambling Strategy project or projects to pay for research and treatment as determined appropriate to address the risk of harmful gambling."
