International edition
June 20, 2019

And failure to prevent gambling harm

UK: Gamesys fined USD 1.5 M for breach of money laundering regulations

UK: Gamesys fined USD 1.5 M for breach of money laundering regulations
Jackpotjoy, Virgin Casino and Monopoly Casino are some of the brands operated by Gamesys.
United Kingdom | 06/12/2019

UKGC’s investigation revealed the online operator failed to comply with money laundering regulations and, after three individuals had spent stolen money with the gambling business, the firm failed to deliver interaction that could have prevented harm.

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ibraltar-based Gamesys will have to pay £1.2m (USD 1.5 M) for failing to prevent gambling harm and breaching money laundering regulations, the UK Gambling Commission revealed Monday.

The commission imposed said financial penalty after launching an investigation into the operator’s processes. Police investigations had revealed three individuals had spent stolen money with the gambling business.

The investigation revealed that despite customers displaying behavior that could indicate problem gambling the operator failed to deliver interaction that could have prevented harm.

The UKGC also discovered the operator failed to comply with money laundering regulations, including not establishing customers’ source of funds.

As part of a settlement with the Commission, Gamesys will return £460,472 of stolen money to victims and pay £690,000 as a payment in lieu of a financial penalty. This money will be spent accelerating delivery of the National Strategy to Reduce Gambling Harms.

Richard Watson, Gambling Commission Executive Director, said: “It is vital that operators understand their customers - track their online gambling and step in quickly when they suspect someone is suffering from gambling harm.

“These key steps and processes ensure they meet both their anti-money laundering and social responsibility obligations for all customers.

“Gamesys’ approach resulted in a variety of failings and saw stolen money flowing through the business – with customers being put at risk of gambling-related harm.”

Last month, Labour deputy leader Tom Watson called for a review of current online gambling licenses. He wrote a letter to the chief executive of the UKGC and Jeremy Wright, the culture secretary, to question the integrity of many operators. According to Watson, online license holders should have to reapply for their operating licenses as over a third were found by the industry regulator to be failing customers.

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