Stride Gaming subsidiary fined £7.1m for AML and social responsibility failures
UK Gambling Commission says the fine imposed on Stride’s Daub Alderney subsidiary “reflects the seriousness of lapses”
Stride Gaming subsidiary Daub Alderney Ltd has been hit with a £7.1m UK Gambling Commission (UKGC) fine for anti-money laundering (AML) and social responsibility failings.
Stride’s share price plummeted 35% in August when the bingo brand first announced it would receive a UKGC-imposed financial penalty, but the size of the fine and the reason behind it was not revealed publicly until this afternoon.
According to the UKGC report, Daub Alderney notified the Commission in September 2017 of a technical failure in its automated system that allowed self-excluded customers to open and access their casino accounts.
Between 14 July and 1 September 2017, 98 self-exclusion emails and 30 problem gambling emails from customers were not directed to customer service.
Of the affected customers, 73 were able to continue to play, depositing a total of £17,830. The UKGC noted that this money had since been refunded to the customers.
UKGC officials accepted that this was a technical issue and not a deliberate breach, but noted that this failure occurred for such a period of time and likely had a significant impact on the self-excluded customers.
On top of the £7.1m financial penalty, Stride Gaming must also appoint a money laundering reporting officer and ensure that senior management undertake substantial AML training.
The firm must also continue a review into the effectiveness of the implementation of AML and social responsibility measures with external auditor Deloitte, with terms agreed upon by the UKGC.
UKGC executive director Richard Watson said: “This action is part of an ongoing investigation into the online casino sector.
“The operator’s standards did not match the protections required, and this fine reflects the seriousness of these lapses,” he added.
Stride said earlier this year it was pivoting away from the UK to focus on international expansion, a move which some at the time suggested was related to compliance issues.
Read the full UKGC report here. More to follow…