William Hill to pay £3m UKGC fine over Mr Green AML and social responsibility failings

London-listed operator William Hill has been fined £3m by the UK Gambling Commission following an investigation which revealed systemic compliance failings in its Mr Green business.

News of the imminent fine was first revealed yesterday in the groups 2019 financial results, with Hills confirming a provision for the £3m penalty within its financial report.

The settlement package relates to the operator’s Mr Green UK-facing gaming business in the period before its acquisition by William Hill.

The UKGC conducted a compliance assessment of the business in July 2018, in which three customer accounts were examined. Failures were identified concerning the manner in which Mr Green interacted with the customers from a problem gambling and anti-money laundering (AML) perspective.

The investigation found the operator failed to carry out social responsibility interaction with a player who won £50,000 before gambling the winnings away. The player then deposited thousands more pounds.

It was also found to have taken a ten-year-old claim payout of £176,000 as satisfactory source of funds for a player who deposited in excess of £1m.

Finally, investigators discovered that Mr Green accepted a photo of a laptop screen showing currency within a crypto trading account as a reliable source of funds.

A voluntary review of Mr Green’s top 120 customers subsequently led to the closure of 113 customer accounts due to the fact those players were unable to satisfy the improved AML requirements.

As a result of this, the UKGC gave Mr Green notice that it would commence a review of its operating licence, starting October 2019.

Mr Green co-operated with the UKGC throughout the compliance assessment and the subsequent investigation according to the regulator, and acknowledged that between November 2014 and November 2018 it did not have effective and adequate AML controls in place to address risks presented by high-staking customers.

In a statement released yesterday, Hills said: “Since we completed our acquisition, we have implemented enhanced policies and processes designed to ensure that the business meets all requisite compliance standards.”

The settlement agreement consists of a £3m payment in lieu of a financial penalty and UKGC costs of more than £10,000. Mr Green has also committed to conducting a compliance assessment of an additional 130 customers.

The fine is part of a wider investigation by the UKGC into the conduct of online operators that has seen six firms surrender UK licences as a result. Nine operators have been fined as a result of the investigation which first began in 2018, or ordered to pay a settlement package.

Richard Watson, UKGC executive director, said the commission’s investigation was part of a wider crackdown on online gambling operators.

“Our investigation uncovered systemic failings in respect of both Mr Green’s social responsibility and AML controls which affected a significant number of customers across its online casinos.

“Consumers in Britain have the right to know that there are checks and balances in place which will help keep them safe and ensure gambling is crime-free – and we will continue to crack down on operators who fail in this area,” Watson added.