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Software giant, Gamesys has come under criticism after a compliance assessment conducted in May 2022, the UK Gambling Commission uncovered that the operatorhad fallen short when it has come to several social responsibility and anti-money laundering (AML) criteria. This evaluation period encompassed the company’s activities spanning from November 2021 to July 2022.
Gamesys, a subsidiary of Ballys Corporation, operates 16 online gambling platforms in the UK, including prominent sites such as Ballycasino.co.uk and Megawayscasino.com. Above and beyond the monetary fine imposed on Gamesys, the regulatory scrutiny prompted by identified lapses will be accompanied by a third-party audit to ensure robust implementation of better Anti-Money Laundering and responsible gambling measures.
UK Gambling Commission’s Regulatory Priorities
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‘Unfortunately, fines like these are not uncommon, even for well-established names within the industry. But, it goes to show you that no one’s untouchable, and when it comes down to it, if an operator or any company affiliated with it fails social responsibility and AML compliance assessments, there’s a dear price to pay.’
Kay Roberts, the Commission’s executive director of operations, emphasized the regulator’s commitment to fostering fairness, safety, and integrity within the gambling industry. She underscored the gravity of regulatory oversight, stressing that deficiencies in compliance would continue to be met with significant repercussions.
Gamesys’ Shortfalls
Under the spotlight of regulatory scrutiny, Gamesys faced reproach for its handling of social responsibility obligations. Failures included inadequacies in identifying customers susceptible to gambling-related harm and an undue reliance on financial markers, such as past insolvency, to gauge risk.
Instances of neglect ranged from insufficient intervention with high-risk customers to inadequate documentation of interactions and decisions, as outlined in the operator’s responsible gambling protocols. The lack of proactive engagement with customers showing signs of problematic gambling behavior raised concerns about Gamesys’ commitment to safeguarding vulnerable individuals.
Gamesys’ AML protocols also failed to meet the mark and faced criticism from the Commission, with several cases of customers circumventing scrutiny thresholds and engaging in substantial financial transactions without the necessary due diligence protocols being in place. For instance, one case saw a play depositing £14,585 over the course of 28 weeks.
The Commission flagged the operator’s reliance on third-party information and verbal assurances from customers as insufficient safeguards against illicit financial activity. Gamesys’ failures proved not only undermine efforts to combat money laundering but also exposed the operator to potential legal and reputational risks.
The Commission went on to detail specific breaches of license conditions, citing violations related to AML prevention and customer interaction protocols. These infractions culminated in a £6 million fine and additional stipulations added to Gamesys’ operating license. Despite the penalties, however, the Commission acknowledged the operator’s cooperation and efforts to implement significant remedial measures to improve the processes moving forward.
Remedial Measures, Industry Implications and Consumer Protection
In response to the action by the UK Gambling Commission, Gamesys committed to a comprehensive audit of its AML and responsible gambling policies, signaling a proactive stance toward rectifying the shortcomings identified by the investigations. The implementation of stricter oversight mechanisms and enhanced training for customer service staff underscores the company’s acknowledgement of their shortcomings and their dedication to upholding regulatory standards.
The Commission’s decisive approach in dealing with Gamesys’ infringements serves as a stern warning to other gaming operators about taking their compliance responsibilities seriously. The enforcement of robust AML and responsible gambling measures not only safeguards consumers but also bolsters the integrity of the gambling industry as a whole. By holding operators accountable for their obligations, the Gambling Commissions is playing a pivotal role in mitigating the social and financial harms associated with excessive gambling and illicit financial activities within the industry. In essence, it is taking steps to make the industry safer for all stakeholders, including gamblers, operators and investors.
In short, while no evidence of criminal activity was found among the specific customers under review, the Commission’s actions underscore the rigorous enforcement of regulatory standards to uphold the integrity of the gambling industry. Gamesys’ experience serves as a cautionary tale, highlighting the consequences of failing to prioritise social responsibility and AML compliance. Moving forward, it is clear that sustained vigilance and proactive engagement with these regulatory requirements are imperative for gaming operators who aim to maintain public trust and safeguard consumer welfare.
