UKGC: 15 operators paid fines/settlements totalling £32.1m in 2020-21

The UK Gambling Commission has published its annual compliance and enforcement report for the financial year 2020-21, which revealed that the regulator suspended five operator licences and revoked licences for one operator as well as nine personal management licence holders.

The regulator stated that the sum of £32.1m collected as a result of fines and regulatory settlements meted out to 15 gambling operators is the highest it has ever collected in a 12-month period.

Throughout the period, the UKGC conducted 83 website reviews and 262 security audits.

Andrew Rhodes, UKGC chief executive, said: “As the Commission’s new chief executive, I am impressed by the amount of enforcement work carried out, but it is also disappointing that it should be necessary. Looking back at enforcement in 2020/21 we see the same two weaknesses in almost every case – operators failing to adhere to social responsibility and anti-money laundering rules.”

Rhodes further stated: “The reasons for these failings are almost as concerning as the failings themselves. Our casework reveals that operators are either not making suitable resources available or are simply putting commercial objectives ahead of regulatory ones. This is simply unacceptable and will be seen as such by others in the industry who work hard to achieve compliance.”

Meanwhile, the UKGC report noted that there have been delayed customer identification checks stating that “there is continued evidence of remote operators carrying out identity checks after the customer has been permitted to gamble”.

The report also noted that the UKGC is “continuing to see repeated examples of operators failing to undertake reviews of their risk assessments” in relation to money laundering and terror funding. It saw “repeated instances” of inadequate customer due diligence and enhanced due diligence measures in place. The UKGC noticed several operators not taking into consideration how problem gambling can be linked to money laundering and terror funding as stated in the regulator’s casino and non-casino anti-money laundering guidance that is “a pattern of increasing spend or spend inconsistent with apparent source of income could be indicative of money laundering, but also equally of problem gambling or both”.

“As Great Britain’s regulator for the gambling industry, we still see far too many breaches of regulations where everyone in the industry agrees we should not see them. The industry has the resources, skills and knowledge to change this,” Rhodes added.

Earlier this month, the UKGC imposed a fine of £685,000 to Greentube Alderney for social responsibility and AML failures.