Gambling Commission hands FSB Technology five-figure financial penalty
Company found to have breached licence conditions including fair terms and practices when previously operating B2C services
FSB Technology has been issued with a financial penalty totalling £29,237 by the Gambling Commission (GC) for flouting various licence conditions.
The gambling regulator said that following an investigation outside of a licence review, relating to a period when FSB held a “combined remote operating licence”, the firm breached licence condition 12.2.1 covering the prevention of money laundering and terrorist financing.
London-based FSB also breached licence condition 7.1.1 regarding “fair and transparent practices” and failed to comply with the Social Responsibility Code Provision (SRCP) relating to customer interaction.
“The failure to comply with a SRCP is a breach of a licence condition by virtue of section 82(1) of the Gambling Act 2005 (“the Act”)”, the GC wrote.
The regulator added: “In line with the Commission’s licensing, compliance and enforcement policy statement and the statement of principles for determining financial penalties, the Commission has decided to impose a financial penalty of £29,237 under section 121(1) of the Act.”
GC officials said FSB cooperated throughout the investigation and noted that the firm ceased offering B2C services in 2022.
These services included white-label agreements with JenningsBet and gowager.co.uk. FSB had triggered a three-year plan to evolve into solely a B2B supplier after receiving investment from private equity firm Clairvest in 2019.
FSB is now purely a technology supplier to challenger brands including the likes of UK-licensed Fitzdares, QuinnBet and BetGoodwin.
In a statement, the supplier said: “FSB Technology (UK) Limited accepts the verdict of the UK Gambling Commission regarding a 2022 assessment of our practices, policies and procedures.
“The £29,237 settlement relates to the period when FSB held a B2C remote operating licence.
“As part of a long-term strategic goal, all B2C activities were ended as of 1 June 2022 as FSB evolved into a B2B-only technology services provider.
“FSB remains committed to excellent compliance standards and this was demonstrated in the successful verdict achieved in our most recent assessment by the regulator in December 2023. We look forward to continuing to work collaboratively with the Gambling Commission.”
Earlier this month, the GC announced that bet365 is to pay a £580,000 regulatory settlement over AML and social responsibility shortcomings.
And in January, Gamesys was slapped with a £6m fine for various failures including allowing one customer to deposit £65,000 in six months without any affordability checks being carried out.