Betway to pay record £11.6m UKGC fine over VIP and AML failings
UK-licensed operator failed to conduct adequate social responsibility and AML checks on £8m deposit as investigation into management continues
Betway will pay an £11.6m fine to the UK Gambling Commission for “systemic and historic” social responsibility and anti-money laundering failings relating to VIP players.
The fine, which is the UKGC’s largest to date, centres on source of funds checks on a VIP customer who deposited £8m, losing £4m over a four-year period.
Betway also failed to carry out social responsibility measures with another customer who lost £187,000 over a two-day period.
The investigation – conducted between 2014 and 2019 – found that insufficient attention had been given to customer affordability and source of funds checks over a £5.8m sum, which the UKGC has alleged may have been proceeds of crime.
The majority of this money will now be divested and returned to victims as part of the settlement package.
In another case, Betway allowed a player to lose £700,000 over three years after depositing £1.6m, despite being unemployed during this time.
A total of seven customer accounts were investigated by the UKGC, all of which had been treated by the company as VIPs.
Of these accounts, three were investigated by the police after it was established that stolen money had been used on the Betway site.
UKGC investigations also revealed inadequate management at the firm, while investigations into the operator’s Personal Management Licence holders are still ongoing.
Betway CEO Anthony Werkman said the company took full responsibility for the cases after cooperating with the investigation and would now take “further proactive steps” as required.
“As a responsible, licensed operator extensive work has and will continue to be undertaken to greatly enhance our compliance systems, policies and processes,” said Werkman. “We have disbanded our VIP program in recognition that tighter controls were needed to ensure our customers were using our services responsibly.
“Betway has no interest in profiting from any stolen funds wagered on its sites. Where we establish that stolen funds have been used, we will ensure that the victim is fully reimbursed. For all other cases, donations are made to charities focused on socially responsible initiatives,” he added.
Richard Watson, executive director at the UKGC, said the case highlighted the urgent need for change in operator VIP programmes.
“The actions of Betway suggest there was little regard for the welfare of its VIP customers or the impact on those around them,” said Watson.
The UKGC is currently undertaking a working group focusing on reforming VIP programmes, headed up by GVC in conjunction with the Betting and Gaming Council.