Online gaming operator Gamesys, now under the ownership of Bally’s since 2021, has recently incurred a substantial £6 million fine. The penalty is a result of identified shortcomings in social responsibility and anti-money laundering (AML) practices. The regulatory action highlights Gamesys’ failure to effectively identify and address customers at risk of gambling-related harm and inadequate measures to combat money laundering.
Social Responsibility Failures:
Gamesys was found lacking in its social responsibility obligations, with instances where customers at risk were not consistently identified. The system of deposit limits, designed to mitigate harm, was reported to be ineffective for certain customers, failing to promptly identify risks. Notably, the company’s interactions with customers who exhibited signs of gambling-related harm were insufficient, as exemplified by a single responsible gambling interaction with a customer who lost £19,709 over a five-month period. Additionally, records of interactions lacked the necessary detail, raising concerns about the thoroughness of their social responsibility measures.
Anti-Money Laundering Shortcomings:
Gamesys faced AML criticisms for allowing customers to spend significant amounts without conducting necessary checks. Insufficient efforts in customer due diligence were noted, indicating a failure to thoroughly vet the backgrounds of players. The ‘Reinvestment of winnings policy’ was identified as inadequate, posing a risk that deposited funds could originate from illicit sources. These lapses in AML protocols underscore a critical failure in safeguarding the platform against financial crime and illicit fund flows.
Regulatory Perspective:
The Gambling Commission, through Executive Director of Operations Kay Roberts, emphasized the regulator’s commitment to ensuring fair, safe, and crime-free gambling environments. The Commission’s rigorous stance on enforcing policies and procedures highlights the gravity of compliance in the industry. The significant fine imposed on Gamesys serves as a clear warning to other operators about the consequences of regulatory non-compliance.
Gambling Commission Initiatives:
In light of these regulatory actions, the Gambling Commission initiated consultations aimed at refining regulations within the gambling sector. These consultations, launched last month, signify a proactive approach to enhance oversight and address the identified shortcomings. The goal is to create a more effective regulatory framework that fosters responsible gambling and prevents financial crimes within the industry.
Gamesys’ £6 million fine serves as a stark reminder of the stringent regulatory environment governing the online gaming sector. The highlighted social responsibility and anti-money laundering failings underscore the need for operators to prioritize player protection and financial integrity. As the industry evolves, continuous efforts to refine and strengthen regulations become imperative, ensuring a fair, safe, and transparent gambling landscape for all stakeholders.