U.K. Gambling Commission (UKGC) has ordered the bookmaker Betfred to pay £3.25 million for anti-money laundering failures and for not having sufficient controls in place to protect new customers, PA Media reported July 18.
The breaches took place between January 2021 and December 2022, the commission reported. Betfred operates 1,750 betting shops, plus a website and app.
Another failure Betfred committed, according to the UKGC, was to assume that customers were not a risk of harm if they were winning, even when they had large stakes over several weeks’ time. They also allegedly keep poor records and didn’t consistently obtain “know your customer” identification or find out the source of their funds.
UKGC Executive Director Of Operations Kay Roberts said in a statement: “In recent years there’s been a public focus on online gambling but this case illustrates how important it is for us to continue our drive to raise standards across the whole industry. Gambling is a legitimate leisure activity enjoyed safely by millions, but it is vital that every single operator – either online or offline – has in place effective safeguards to prevent harm or crime.”
Betfred noted in its statement that “the commission found no evidence of criminal spend in any of our shops.”
The settlement Betfred has agreed to pay will be earmarked for social responsibility causes.
Not even a week prior, the UKGC also fined Star Racing Ltd. £594,000 (€693,376/$772,840) for failing to follow proper anti-money laundering and social responsibility requirements, CDC Gaming Reports revealed on July 13.
The failings happened between March 2020 and May 2021, the commission alleged. They included ineffective policies, procedures and controls in place during that time period. In one example the company allowed large deposits before it sought a source of fund information.
Social responsibility failures included failing to minimize customer risk through customer interactions.
Star Racing agreed to pay the fine and the commission limited its actions to the fine and a warning. New licensing requirements will ensure that Star Racing contacts customers to minimize the risk of harm.
