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UKGC Fines Casumo, Videoslots and Investigates Others

The UK Gambling Commission (UKGC) has slapped two casinos with fines over a failure to fulfil the industry’s social responsibility obligations. As a result, the watchdog has slapped Casumo and Videoslots with a seven-figure each.

UKGC Fines Casumo and Videoslots Millions

The UK Gambling Commission (UKGC) has meted out two of its costliest punishments this year. Casumo, a respected iGaming portal, was hit with a stiff penalty to the tune of £5.85 million and Videoslots, another known casino venue, now has to cough up £1 million to meet the penalty.

Meanwhile, the UKGC has also took an aim at a Malta-licensed company running the low-profile Dr. Vegas profile casino, leading to the shut-down of the company on the territory of the United Kingdom.

The latest round of investigations is one of the most impressive ones, with nine operators coming in the crosshair of the UKGC. Reportedly, the watchdog has issued warnings about the activities of each individual company, notifying them that the UKGC will launch a more detailed examination of their offer.

Meanwhile, Daub Alderney, a software provider part of Stride Gaming, was hit with £7.1 million over failures concerning social responsibility. This brings the total number of social responsibility fines to almost £14 million, adding to an already staggering number.

The UKGC has not done so easily, Chief Executive Neil McArthur has said. However, Mr. McArthur considers the actions to be necessary in light of the sub-par offer of companies.

I hope today’s announcement will make all online casino operators sit up and pay attention, as our investigations found that a large number of operators and their senior management were not meeting their obligations.

While Mr. McArthur has acknowledged that the majority of companies are part of responsible gambling networks and promote these tenets, they are not actively seeking to apply them, which creates a dangerous vacuum in places where measures should have been taken.

Not only is the UKGC targeting the brands and companies any longer. People who hold Personal License (PML) to work in the industry have also been targeted and held personally responsible, which is a new and interesting approach by the watchdog.

The UKGC has issued letters to the guilty parties, noting that some have been let off with a warning while others will be investigated.

The Breaches in Social Security

The problem with Casumo was particularly in a breach of its policies whereby people could in fact launder money, with the operator failing to verify the origin of money. Beyond that, Casumo was found not to carry out proper responsible gambling checks. Casumo, however, remains upbeat with the CEO Oscar Simonsson saying that the company has emerged all the wiser from the case.

In three cases, individual accounts that were deemed low-risk proved to be owned by problem gamblers. Videoslots also failed to establish a proper screening process for their customers. For instance, in one case dated November 2014, a customer deposited £211,000 and ended up losing £45,000.

This prompted no response from the operator, which led to the sanction. The current spate of penalties also indicates that the UKGC is running comprehensive analysis into the individual offers of casinos and any wrongdoing wouldn’t go unnoticed, no matter how far back the watchdog needs to dig.

Julie Moraine

With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.