UK Gambling Commission orders NetBet to pay $846,000 for AML and social responsibility failures

The UK Gambling Commission (UKGC) has ordered NetBet Enterprises Limited, operator of netbet.co.uk, to pay £650,000 ($846,000) for a series of anti-money laundering (AML) and social responsibility failings, after a review found weaknesses in the company’s controls and reporting systems.

The breaches, identified between November 2023 and July 2024, violated the regulator’s licence conditions on preventing money laundering and ensuring accurate reporting. The company has agreed to pay the amount as part of a regulatory settlement, with all funds directed to socially responsible causes, the commission said.

As part of the settlement, NetBet must also undergo an independent audit to assess whether newly introduced compliance measures are effective and properly embedded.

The Gambling Commission said NetBet had been over-reliant on financial triggers, allowing customers to spend amounts disproportionate to their declared income.

In one case, a customer deposited £2,000 ($2,619) over four days through an e-wallet while working in a high-risk occupation, yet was not referred to the company’s money laundering reporting officer. Another customer, whose monthly net income was £2,800, was able to deposit £1,650 within two hours without additional scrutiny.

The regulator added that NetBet’s AML risk assessment omitted several key risk factors, including oversight of third-party business relationships, controls over high-stakes gambling, and the management of third-country nationals living in the UK.

The Commission also identified shortcomings in NetBet’s social responsibility measures, saying the operator failed to implement “effective” systems to detect and mitigate gambling-related harm.

Indicators such as overnight play, rapid deposit patterns, exceeding spending limits, and escalated gameplay were often missed or only reviewed manually, the regulator said.

NetBet was further criticised for submitting inaccurate data in its regulatory returns, in breach of licence requirements to provide timely and correct information.

John Pierce, Director of Enforcement at the Gambling Commission, said: “This case highlights the serious consequences of failing to meet anti-money laundering and social responsibility obligations. We expect all operators to take note and ensure their systems are not only well-designed but are working effectively to protect consumers and to keep crime out of gambling.

“Alongside the £650,000 financial penalty, the operator is also required to commission an independent audit of its policies, procedures, and controls to ensure the necessary improvements they have implemented are properly embedded and remain effective in practice. Our focus is on ensuring operators meet the standards we expect, and where they fall short, we will intervene."

The enforcement action against NetBet comes amid a wider compliance push by the regulator. In October, the Gambling Commission suspended Spribe OÜ’s software licence over hosting non-compliance issues and also halted the operating licence of VGC Leeds Limited, which runs Victoria Gate Casino, after uncovering AML failings.