UKGC Hits Videoslots with GBP 650,000 Penalty over AML and Player Safety Failures

Videoslots has encountered another regulatory setback as the UK Gambling Commission (UKGC) ordered the operator to pay a penalty of GBP 650,000 ($851,000) for several anti-money laundering and social responsibility violations. In addition to the fine, the company also received a formal warning and a requirement for an independent audit, adding further scrutiny to a company already under pressure from regulators in other European markets.

The Regulator Found Multiple Deficiencies

According to the UKGC, the company, which operates the Videoslots, Mr Vegas, and Mega Riches brands, relied heavily on automated systems that did not perform as intended when encountering real-world customer behaviour. Monitoring tools were unable to detect clear signs of harm. One customer gambled across three active days in two months, racking up GBP 6,550 ($8,580) in losses without receiving any form of contact.

The operator’s deposit limit settings were especially problematic. Limits were calculated on a calendar-month basis, meaning that the tool did not account for the customer’s first deposit of the period. Consequently, one player with a GBP 3,000 ($3,900) limit was able to lose GBP 5,000 ($6,550) within a month. Another person with a GBP 2,000 ($2,600) limit lost GBP 7,500 ($9,800) in 18 days.

AML issues were also severe. Investigators found that staff were over-reliant on algorithms that failed to escalate obvious red flags. In one scenario, a customer deposited more than GBP 75,000 ($98,000) in 16 days using prepaid vouchers and subsequently withdrew the money to four different bank accounts. Additionally, this customer was accessing the account from outside Great Britain without triggering any checks.

Videoslots Faced Similar Scrutiny in Sweden

John Pierce, the UKGC’s director of enforcement, was highly critical of Videoslots’ reliance on automated systems. Speaking after the penalty was announced, he commented that the investigation had exposed a crucial lack of effective oversight and early intervention. He reiterated the Commission’s longstanding concerns regarding open-loop payment systems, especially when vouchers can be purchased anonymously or using crypto through third-party websites.

The investigation identified a serious example where prepaid digital vouchers had been used for gambling without effective oversight and early intervention.

John Pierce, UKGC director of enforcement

The UKGC also drew attention to a pattern where staff often assumed unusual behaviour was linked to “recycled winnings” without confirming it. Pierce pointed out that operators using similar voucher-based systems must alert the regulator instantly if they haven’t done so already. The Commission has updated its AML risk guidance to reflect the growing concerns around these payment methods. 

This incident marks another high-profile case of regulatory scrutiny for Videoslots. Earlier this year, Sweden’s gambling authority imposed a penalty of SEK 12 million ($1.26 million), stating that the company did not act quickly or decisively enough when faced with signs of harmful play. With the UK penalty added to the list, Videoslots faces heightened scrutiny from several major European markets.