UKGC Slams ProgressPlay with GBP 1M Fine for Social Responsibility Breaches

The UK Gambling Commission (UKGC) announced that it has fined one of its licensees over AML and social responsibility failings. ProgressPlay Limited, the operator in question, will therefore have to pay a fine and undergo a third-party audit.

ProgressPlay Finds Itself in Hot Water

In its announcement, the UKGC said that it uncovered a variety of serious failings in ProgressPlay’s operation. For context, ProgressPlay runs some 134 gaming websites in the UK.

In terms of AML failures, the regulator said that the operator did not conduct an appropriate Money Laundering and Terrorist Financing (MLTF) risk assessment. To make matters worse, the company lacked appropriate control to minimize the risk of MLTF.

The UKGC further added that ProgressPlay failed to scrutinize its customers’ transactions, did not verify the source of funds where necessary, and did not assess the risk profile of higher spenders.

In terms of social responsibility failures, ProgressPlay lacked adequate systems to monitor its customers’ behavior and to prevent gambling-related harm and intervene where necessary. ProgressPlay also failed to implement adequate processes to gauge the impact of individual interactions on its customers’ behaviors and determine whether further involvement was necessary.

As a result of its failings, ProgressPlay was hit with a GBP 1 million fine. The company was also given a warning due to the fact that this was not the first time it had committed AML and social responsibility breaches. Finally, the UKGC required ProgressPlay to undergo a third-party audit to ensure that these violations do not happen again.

The UKGC Is Not Happy with the Repeat Offense

John Pierce, the UKGC’s director of enforcement and intelligence, commented on the penalty, saying that licensed gambling operators are expected to have robust AML and safer gambling policies and procedures in place. He added that operators should regularly test these systems to make sure they are effective.

Pierce was not happy with the fact that this was not the first time ProgressPlay had violated the rules.

This case marks the second time ProgressPlay Limited has been subject to enforcement action by the Gambling Commission. Its failure to meet AML obligations, along with the gaps identified in its social responsibility processes, are unacceptable.

John Pierce, director of enforcement and intelligence, UKGC

Pierce added that operators “should be in no doubt” that repeated breaches will result in increasingly severe enforcement action. For context, ProgressPlay’s previous violation had incurred a penalty of GBP 175K.

The UKGC urged all operators to learn from this case and take the steps necessary to avoid making the same mistakes.

In the meantime, the UKGC launched consultations on proposed LCCP changes.