UKGC Fines Daub Alderney with $8m, Rank to Appeal

The UK Gambling Commission has imposed an $8m (£5.8m) fine on Kittybingo and Regalwins operator Daub Alderney over social responsibility and anti-money laundering incompliance related to its online offering. 

Daub Alderney to Pay $8.06m Fine 

Daub Alderney will pay a $8.06m (£5.85m) fine for breaching the UK Gambling Commission’s rules aimed at preventing money laundering and protecting vulnerable customers. Apart from the financial penalty, Daub Alderney, which runs digital brands including Aspers and Magical Vegas, has also received a formal warning. The breaches under question occurred between January 2019 and March 2020, the Gambling Commission’s investigation unveiled. 

Failures Happened Before Rank’s Acquisition 

Social responsibility failings included disregarding a customer’s problem gambling activity, which led to losing $59,850 (£43,410) in four months. Despite the player’s problem gambling behavior, such as using four different payment cards in one day and reversing $184,590 (£133,873) in requested withdrawals, the operator did not follow the appropriate procedures. 

Two other customers lost $55,840 (£40,500) and $53,770 (£39,000), respectively. However, the operator sent them a few safe gambling messages and pop-ups that were not evaluated for effectiveness. 

In terms of anti-money laundering failings, the company did not pursue an adequate source of funds evidence, which led customers to lose between $68,960 (£50,000) and $73,090 (£53,000).

This case was the result of planned compliance activity and every operator out there should be aware that we will continue to take firm action against those who fail to raise standards.” 

Helen Venn, Executive Director, UK Gambling Commission 

Venn acknowledged that a big part of these failures occurred before the Rank Group acquired the business in October 2019 and that the situation has changed since then. However, Venn added that changing the licensee’s owner does not remove its culpability for the failures. 

In its annual statement last month, Rank said it will appeal to the higher court against the Commission’s judgment. Rank believes that the Gambling Commission’s findings in the investigation do not take into account the significant remedial actions taken by the company following the acquisition of Daub Alderney. Rank also will also appeal the size of the penalty, which was increased from £3m to £5.9m during the course of the case.