Gamesys Fined £6M by UK Gambling Commission for Compliance Failings

UK Gambling Commission Levies £6M Fine Against Gamesys for Regulatory Breaches

The UK Gambling Commission has imposed a significant £6 million fine on the online gaming operator Gamesys for a series of social responsibility and anti-money laundering (AML) failings. This action underscores the regulator’s commitment to ensuring fair, safe, and crime-free gambling practices.

Comprehensive Audit and Operational Failures

Identified during a compliance assessment in May 2022, these failings spanned from November 2021 to July 2022. As part of the regulatory action, Bally’s Corporation-owned Gamesys, which operates prominent UK sites like Ballycasino.co.uk and Jackpotjoy.com, will also undergo a rigorous third-party audit. This audit is aimed at ascertaining the effectiveness of its AML and safer gambling policies implementation.

Gambling Commission’s Stance on Operator Compliance

Kay Roberts, the Executive Director of Operations at the Gambling Commission, emphasized the seriousness with which the regulator views its responsibility. “Significant regulatory action is inevitable whenever we detect shortcomings in the policies and procedures designed to make gambling fair, safe, and free from criminal activities,” Roberts stated.

Specific Areas of Non-Compliance

The Commission’s review of Gamesys revealed that the operator did not consistently identify customers at risk of harm related to gambling. In several instances, the records of interactions, considerations, and decision rationales lacked sufficient detail.

Furthermore, in terms of anti-money laundering, the investigation found that Gamesys had allowed customers to spend substantial amounts without conducting necessary AML checks. The company’s customer due diligence measures were inadequate, and its ‘Reinvestment of winnings policy’ failed to adequately mitigate the risk of funds being sourced from illegitimate means.

Implications and Future Steps for Gamesys

This penalty signifies a major regulatory action and serves as a reminder of the rigorous standards expected in the UK’s online gaming industry. Gamesys must now not only pay the fine but also demonstrate significant improvements in its compliance measures. The forthcoming third-party audit will be crucial in ensuring that the company aligns its operations with the regulatory standards set by the Gambling Commission.

Setting a Precedent for Industry Compliance

The Gambling Commission’s action against Gamesys is a clear message to the online gaming industry about the importance of maintaining high standards of social responsibility and anti-money laundering practices. This case sets a precedent and serves as a warning to other operators to rigorously adhere to regulatory requirements to avoid similar punitive measures.