Two gambling operators will have to pay regulatory settlements worth a total of £675,000 after an investigation by the UK Gambling Commission (UKGC) found them to have breached certain anti-money laundering and social responsibility rules.
Jumpman Gaming Limited, which currently operates 243 online gambling platforms, will be hit by a £500,000 fine, while Progress Play Limited, which operates 201 online gambling sites, will have to pay £175,718 for some social responsibility and anti-money laundering failures. The payment will be made to the National Strategy to Reduce Gambling Harms.
The regulatory action against the two gambling businesses was confirmed by the UKGC’s Director of Enforcement and Intelligence, Leanne Oxley, who encouraged all other operators to consider the identified failures and consider potential improvements in their own operations.
Jumpman Gaming Ltd to Pay £500,000 Following a Remote Licence Review
As mentioned above, Jumpman Gaming Limited has been one of the companies that have been recently hit by a regulatory investigation and will have to pay £500,000 as part of their regulatory settlements with the country’s gambling watchdog. The probe resulted in a review of the gambling business’ Combined Remote Operating Licence No.039175-R-319452-022, which started on September 3rd, 2020 after a compliance assessment conducted in July of the same year identified some concerns.
The review of the UK Gambling Commission found that Jumpman Gaming Limited failed to stay in line with the rules aimed at preventing anti-money laundering. The company also failed to promote safer gambling as part of an effort to protect more vulnerable customers.
According to evidence gathered by the UKGC during the compliance assessment and the subsequent review of the company’s operating licence, Jumpman Gaming Limited failed to comply with a number of rules included in the Licence Conditions and Codes of Practice (LCCP) and the Social Responsibility Code Provision (SRCP):
- Paragraphs 1 and 2 of the Social Responsibility Code provision 3.4.1 regarding customer interaction;
- Paragraphs 1, 2 and 3 of Licence condition 12.1.1, which requires operators to comply with anti-terrorist financing and anti-money laundering rules;
- Licence condition 12.1.2, under which operators based in foreign jurisdictions are required to comply with the country’s Money Laundering, Terrorist Financing and Transfer of Funds Regulations of 2017;
- Paragraphs 1 and 2 of SRCP 3.9.1, which require gambling operators to unveil rules to identify several accounts held by the same person
- Paragraphs 2 and 3 of Licence condition 12.1.1 aimed at the prevention of terrorist financing and money laundering
- Licence condition 12.1.2;
- Paragraphs 1 (a), (b), (c) and 2 of SRCP 3.4.1, under which companies are required to interact with their customers so that they tackle the risk of gambling-related harm
- Author
The regulatory settlement agreed between the UKGC and Jumpman Gaming Limited consists of £500,000 that will be paid instead of a financial penalty, a £13,594 payment to cover the regulator’s costs of investigating the case, and an agreement to the publication of an official statement related to the case.
Progress Play Ltd to Pay £175,718 for AML and Customer Protection Failures
The other company that has recently suffered the Gambling Commission’s backlash – Progress Play Limited – also faced an investigation that resulted in a regulatory review of its Combined Remote Casino and Betting Operating Licence No.:000-039335-R-319313-017 which started on August 14th, 2020 under section 116.
The UKGC revealed that Progress Play Limited was found to have failed to comply with customer protection and anti-money laundering rules. The online gambling operator was found to have breached a number of Licence Conditions and Codes of Practice (LCCP):
The UK Gambling Commission took into account the fact that Progress Play fully cooperated throughout the investigation and has accepted all findings. As a result, the online gambling business will have to make a £175,718 payment to the regulator instead of a further financial penalty and divestment. The company will also pay a further £12,466 to the UKGC to cover the costs made by the regulator throughout the investigation.
Olivia Cole
