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Velimir Velichkov May 23, 2023 2 min read
UKGC Hits SkillOnNet with a $380K Fine over License Breaches
The gambling regulator in the UK confirmed that SkillOnNet agreed to pay a financial penalty after breaches related to anti-money laundering and safer gambling were uncovered
Tasked with regulation of gambling activities, the UK Gambling Commission (UKGC), safeguards the consumers while scrutinizing the market to ensure all licensees follow the established regulatory framework. While there are certainly going to be changes to the gambling market in the country, in light of the White Paper released recently, this doesn’t interfere with the regulator’s responsibilities.
Now, the Commission revealed that it has imposed a regulatory sanction against one operator in the country over breaches related to anti-money laundering (AML) and social responsibility. The UKGC confirmed Tuesday that due to failures, it imposed a financial sanction against Skill on Net Limited, a licensed gambling operator in the country.
The Commission revealed that an investigation against the operator was prompted over a section 116 regulatory review. The probe sought to determine SkillOnNet’s compliance with the regulations related to the prevention of money laundering and safer ambling.
Upon investigation, the Commission confirmed that the licensee failed to comply with different conditions to the License Conditions and Codes of Practice (LCCP). Although the sanction was announced this week, the failures, UKGC said, date back between January 2021 and December 2022.
The gambling watchdog explained that the operator has taken remedial action. Still, in line with the established regulations, the Commission said that SkillOnNet will voluntarily make payment of a fine totaling £305,150 ($377,900). As a part of the broader effort to ensure compliance, the licensee also agreed to undergo a third-party audit that will seek to ensure the company implements effective safer gambling and AML policies, controls and procedures.
The Regulator Uncovers Breaches to LCCP
Describing the breaches, the Commission said that SkillOnNet failed to comply with LCCP’s paragraphs 1,2, and 3 within license condition 12.1.1, which relates to AML and the prevention of terrorism financing. Similarly, the UKGC said the licensee didn’t comply with license condition 12.1.2 which mandates all foreign jurisdiction operators to comply with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
Other breaches to the LCCP involved failure to “adhere to Ordinary code provision (OCP) 2.1.1 – Anti-Money Laundering guidance.” Last but not least, the Commission noted that the licensee failed to comply with paragraphs 1a, b and 2 of the social responsibility code provision that are related to safe gambling.
William Velichkov is a research-driven writer. His strengths lie in ensuring factual accuracy, vetting government documentation and reaching out to regulators and other officials. He is particularly fond of financial reporting, the sports betting industry, B2B partnerships and esports betting developments. William is a strong asset to the GamblingNews team as he adds a bedrock to our reporting.