The UK Gambling Commission (UKGC) has announced the suspension of Goldchip Limited’s license as the regulator is moving in to review the company’s operations and its suitability to hold a license in the first place. UKGC is citing potential breaches of the Gambling Act review and argues that Goldchip Limited may have acted against the gambling framework.
Investigating the Matter
Whether this is true will have to be established in the course of the investigation as UKGC has withheld further details in the case. The regulator mentioned that the investigated breaches have to do with AML shortages and social responsibility failings. There is a chance the regulator would find the company unsuitable to hold a license as well.
UKGC vows to conduct a thorough and unbiased review, basing it on Section 116 of the Gambling Act 2005. The suspension is not an obligatory practice, but it is allowed under current gambling laws, enabling regulators to investigate potential breaches as they see fit. In a statement, the commission explained:
“We have made it clear to the operator that during the course of the suspension, we expect it to focus on treating consumers fairly and keeping them fully informed of any developments which impact them.”UKGC
However, UKGC wants consumers to still have access to the website and withdraw their funds if they choose to. UKGC is actively trying to clean up potential shortcomings in the gambling sector as a looming gambling revenue has had the regulator and many businesses in a tight spot over lawmakers’ decision to impose a litany of new rules that could negatively impact gross gaming revenue.
Taking Crack at All Wrongdoers
All of this, though, is being done to ensure better consumer protection. Some have argued that piling on too much regulation on the industry would push consumers into black markets, which are still a serious threat to the safety and health of gamblers in the UK. UKGC’s decision comes only a day after it slapped two other companies, providers of white label casino solutions, with settlements to the tune of £675,000 ($840,000).
Jumpman and Progress Play have been found guilty of coming short of stated AML and social responsibility targets. Jumpman is responsible for as many as 243 websites and Progress Play provides software and solutions to another 201. The money from the penalties applied to these two operators will be forwarded to the National Strategy to Reduce Gambling Harms.