BetCity, an online sports betting and gambling operator owned by Entain, was fined €3 million by the Kansspelautoriteit (KSA), the Dutch gambling regulator, over anti-money laundering (AML) and counter-terrorism financing (CTF) failures.
This penalty comes as a result of BetCity’s non-compliance with the Money Laundering and Terrorism Financing Prevention Act (Wwft) in the Netherlands.
The KSA first approached BetCity regarding these violations in September of 2022 after receiving customer reports that flagged certain breaches. These reports brought to light several issues, including BetCity’s failure to investigate the source of funds of players with significant losses.
Instances were identified where players had lost substantial amounts, such as €110,000 in a month and €85,000 in six months, without any intervention from the operator. The KSA concluded that BetCity was unable to continuously monitor customer behavior.
Upon analyzing the reports, the KSA instructed BetCity on how to address these issues and stated that it would continue to monitor the operator to ensure compliance. However, the KSA found that BetCity did not meet the requirements for a large part of the customer surveys assessed between December 2022 and May 2023.
Many investigations were initiated late, after significant amounts had already been gambled away. The regulator also noted that BetCity did not consistently request sources of income from customers and failed to report unusual transactions.
As a consequence of BetCity’s AML and CTF failures, the KSA decided to impose a €3 million fine on the operator. This is the first time that the KSA has published sanctions related to the Wwft. The chairman of the KSA, René Jansen, emphasized the importance of compliance with AML regulations and stated that there are no more excuses for non-compliance in the market.
Entain, the parent company of BetCity, expressed its commitment to working with regulators and ensuring the highest standards of player protection.
Entain acquired BetCity in January, agreeing to pay an initial €300 million with a deferred contingent consideration of up to €550 million. The company stated that it was aware of the issues before completing the acquisition and had already begun implementing improvements to BetCity’s procedures and control frameworks.
The recent fine imposed on BetCity is another regulatory blow for Entain, which has faced other legal challenges in the past. Last week, Entain reached a settlement with the Crown Prosecution Service (CPS) over historic activities in Turkey, involving a payment of £585 million. In 2022, Entain was ordered to pay a record £17 million by the U.K. Gambling Commission for social responsibility failings.
