TGP Europe has been fined by the British Gambling Commission due to its regulatory shortcomings

The British regulator discovered that TGP Europe, the white-label operator, failed to perform satisfactory due diligence tests and violated the anti-money laundering (AML) and social responsibility requirements.

TGP Europe Limited, an Isle of Man-based white-label network manager responsible for overseeing 19 sites, including sportsbooks for 12Bet, BK8, Fun88, and Kaiyun, has been issued a warning and a fine of £316,250 by the Gambling Commission for failing to implement adequate anti-money laundering (AML) and social responsibility measures.

The Gambling Commission found that TGP Europe had also failed in social responsibility measures, such as inadequate responses in cases where customers continued to gamble after multiple safer gambling alerts had been triggered. The company relied solely on automated interactions without evaluating their effectiveness and failed to consider escalating to customer care interventions, like telephone calls.

Regarding the AML side, the Gambling Commission stated that TGP Europe’s risk assessments for money laundering and terrorist financing were inadequate. The operator did not take into account risks related to false or stolen identification documents and failed to conduct due diligence on “unusually large transactions”.

B2B relationships and new gambling licence conditions

The Gambling Commission found that TGP Europe’s policies to assess risk in its business-to-business relationships were inadequate, with ineffective due diligence processes in place for white-label deals. In addition to issuing a warning and financial penalty, the commission has imposed further licence conditions that require TGP Europe to take action to ensure thorough due diligence checks are conducted in the future.

The Gambling Commission stated that “This case serves as a reminder to gambling operators of the importance of maintaining robust AML and social responsibility protocols to prevent potential breaches and protect their customers.”

In the previous month, the British regulator issued its largest fine to date, imposing a £19.2m penalty on William Hill, which was acquired by 888 Holdings in 2020. The fine is the largest in the history of British gambling, exceeding the £17m fine levied against Entain in August of last year.