In a recent investigation conducted by the UK Gambling Commission, operator SkillOnNet has been found in breach of Licence Conditions and Codes of Practice (LCCP), leading to a significant financial penalty. The probe revealed failures in social responsibility and anti-money laundering (AML) measures, prompting the regulatory body to take decisive action.
Background:
Under the provisions of the Gambling Act 2005, SkillOnNet is obligated to uphold certain licensing objectives, including conducting fair and transparent gambling practices, preventing criminal association with gambling activities, and safeguarding vulnerable individuals, particularly children, from the potential harms of gambling. However, the Gambling Commission’s review exposed deficiencies in SkillOnNet’s processes aimed at promoting safer gambling and preventing money laundering.
Failings in Interaction and Assessment:
One of the key findings of the regulatory review was that SkillOnNet’s interactions with customers were ineffective in gathering the necessary information to assess an individual’s risk level. These interactions were minimal and lacked proper scrutiny or attempts to obtain additional information. Rather than engaging in thorough assessments, SkillOnNet relied on customers’ statements without adequate verification or investigation.
Regulatory Settlement Details:
To address the identified failings and penalize SkillOnNet for their non-compliance, the regulatory settlement includes several key components. Firstly, SkillOnNet will make a payment of £305,150, which will be allocated to socially responsible causes instead of a financial penalty. This demonstrates a commitment to redirecting the funds toward initiatives that can benefit the wider community.
Additionally, SkillOnNet has agreed to the publication of a statement of facts related to this case, ensuring transparency and accountability. The operator will also contribute £9,079 to cover the Gambling Commission’s investigative costs. Furthermore, within 12 months of the conclusion of the licence review, SkillOnNet will undergo an independent third-party audit to assess the effective implementation of their AML and safer gambling policies, procedures, and controls.
SkillOnNet’s regulatory breaches and subsequent penalty serve as a reminder of the importance of upholding licensing objectives within the gambling industry. The Gambling Commission’s investigation highlighted significant shortcomings in SkillOnNet’s approach to social responsibility and AML measures. By taking appropriate action and imposing financial consequences, the Commission aims to encourage operators to prioritize the safety and well-being of their customers. Moving forward, it is crucial for gambling operators to strengthen their compliance efforts, ensuring fair and responsible gambling practices while protecting vulnerable individuals from potential harm.