Videoslots must pay £2m for a series of regulatory breaches.
UK.- The Gambling Commission has issued a £2m penalty against Videoslots Limited for a series of LCCP failings that occurred between October 2019 and February 2022. The regulator found failures in the Malta-based online casino operator’s social responsibility and anti-money laundering procedures.
Videoslots was found to have failed to interact with customers to reduce gambling regulated harm and failed to implement efficient AML procedures. The Gambling Commission cited the example of a customer who deposited £112,225 and lost £58,725 between November 21, 2021 and January 2022 despite triggering alarms for losses, length of play and early-hours play.
On the AML side, the Gambling Commission detected delays in the implementation of risk-based processes, a failure to comply with customer due diligence requirements and a lack of AML analysts to manage the volume of data and conduct account reviews.
The report states: “Customer A triggered several AML alarms and was able to deposit £112,225. However, AML analysts failed to properly implement all actions required by the licensee’s AML policies and procedures. Similar failings were found with other customers.”
The regulator said Videoslots had repeatedly ignored warnings about its AML actions, lack of AML analysts and neglect of customer due diligence. The operator has now acknowledged its failings, saying that its operational capacity was “severely impacted by the Covid pandemic during the relevant period”.
The agreed £2m settlement comprises a payment in lieu of a financial penalty of £1.5m, £494,841 in divestment and £11,308.00 towards the cost of the investigation.
It’s the second time the Gambling Commission has sanctioned Videoslots, following a £1m penalty in August 2019 due to KYC failings. The regulator highlighted the gravity of the latest breaches, citing the number of breaches, the period of time and the repetition of offences as aggravating factors. It stressed that operators must learn from compliance failings and provide appropriate staff training.
It said: “The case serves as a sobering reminder to all operators of the imperative to adhere strictly to regulatory norms, ensuring the safety and well-being of customers.”
Last month, the Gambling Commission issued a £490,000 penalty against PPB Counterparty Services Limited, which trades as Paddy Power and Betfair. The sanction is for sending promotional push notifications to devices linked to customers who had self-excluded.
The offence dates back to November 21, 2021, when the operator’s app distributed an offer of enhanced odds for bets on an English Premier League football match to devices either linked to accounts that were GAMSTOP registered or devices linked to accounts that were self-excluded with the licensee.
