The United Kingdom’s Gambling Commission (UKGC) has fined yet another licensee due to social responsibility and AML failures. The company in question this time was Betfred, the protection protocols of which failed to properly identify at-risk players or suspicious transactions.
The Operator’s Systems Failed to Properly Identify Riskier Transactions
According to the UKGC’s announcement, Betfred’s failings were related to technical breaches. The regulator emphasized that the company’s B3 gaming machine systems were unable to properly identify customer spend and, by extension, manage riskier transactions with possible ties to fraud. Luckily, there was no evidence of any potential money laundering taking place.
The UKGC noted that Betfred did not have a clearly defined policy for identifying and handling customers who may be subject to financial sanctions.
In addition to that, Betfred failed to properly gauge player risk and identify at-risk players in certain cases where there were clear indications of possible gambling harm. To top it all off, the UKGC slammed Betfred for its subpar customer interactions.
As a result of the reported violations, the UKGC has opted to levy a GBP 825,000 fine against Betfred. In addition to the financial penalty, the operator will be required to onboard the services of a third-party auditor to prevent repeat failures.
This is the second time Betfred has been hit with a fine following a GBP 3.25 million settlement in 2023 when the company was accused of similar violations.
Betfred Expressed Commitment to Rectifying the Issues
The UKGC’s director of enforcement, John Pierce, commented on the matter, saying that Betfred’s failings this time were mostly related to technical breaches rather than arising from specific cases. He also acknowledged the operator’s immediate efforts to rectify the mistakes and fix its shortcomings.
Despite that, Pierce emphasized that the mistakes were “unacceptable” and that the independent audit will have the important task of ensuring Betfred’s business is aligned with the UKGC’s requirements.
We fully acknowledge the improvements the operator has already made since these issues were identified, and the independent audit will be key to confirming these changes are sustained so that the operator continues to be fully compliant with social responsibility and anti-money laundering requirements.
John Pierce, director of enforcement, UKGC
Betfred’s head of corporate affairs and communications, Mark Pearson, responded to the financial penalty, expressing a firm commitment to strengthening Betfred’s AML and social responsibility policies.
Pearson added that he was relieved that no evidence of criminal spending had been identified at the company’s betting shops.