Gamesys to pay £1.2m after latest Gambling Commission crackdown
Operator penalised for allowing customers who had displayed problem gambling behaviour to spend stolen funds with the firm
Gamesys has been forced to pay £1.2m as part of a settlement package with the UK Gambling Commission (UKGC) after the operator was found to have breached money laundering rules and failed to prevent gambling harm.
The London-headquartered operator was found by a police investigation to have allowed three customers who had displayed problem gambling behaviour to spend stolen funds with the firm between 2014 and 2016.
A subsequent UKGC investigation revealed Gamesys had failed to comply with money laundering regulations and had not established the source of funds for these payments.
In addition, UKGC investigators found the operator had “failed to deliver interaction that could have prevented harm” with these three individuals who had all displayed behaviour linked to problem gambling.
Online gambling operator Gamesys (Gibraltar) Limited will pay £1.2m for failing to prevent gambling harm and breaching money laundering regulations. Read more here: https://t.co/hAtEek2PYd pic.twitter.com/vQh5nCa5bC
— Gambling Commission (@GamRegGB) June 12, 2019
“It is vital that operators understand their customers – track their online gambling and step in quickly when they suspect someone is suffering from gambling harm,” Richard Watson, Gambling Commission executive director, said.
He added: “These key steps and processes ensure they meet both their anti-money laundering and social responsibility obligations for all customers.
“Gamesys’ approach resulted in a variety of failings and saw stolen money flowing through the business – with customers being put at risk of gambling related harm.”
As part of the agreed financial settlement, Gamesys will pay £690,000 in lieu of a financial penalty, which the UKGC has confirmed will be spent on “accelerating delivery of the national strategy to reduce gambling harms”.
In addition, stolen funds totalling £460,472 which were used on the Gamesys site will be returned to affected individuals.
Leon Earp, the director of Gamesys (Gibraltar) Limited and money laundering reporting officer, said: “We acknowledge and fully accept the findings of the Commission in regard to these historic cases from 2014 to 2016. Since that period we have significantly improved our risk assessment procedures and have made extensive investments in resources, tools and training, all of which enable us to better understand, and support, our customers and keep crime out of gambling.”
Earlier this month, Gamesys announced the launch of its Virgin Bet sportsbook product, which will operate in the UK via a Gibraltar gaming licence.