The UK Gambling Commission (UKGC) revealed that it handed out a £2-million fine to Videoslots Limited after it found that the company breached some anti-money laundering (AML) and social responsibility (SR) rules.
The country’s gambling regulatory body shared that the monetary penalty will be paid as part of a settlement it reached with the gambling company that currently operates the videoslots.co.uk, videoslots.com, and mrvegas.com online gambling platforms. The money that the UKGC receives as a result of the settlement will be used to fund various socially responsible causes the UK.
The investigation carried out by the UK Gambling Commission’s officers followed two compliance assessments that led to a regulatory review of Videoslots Limited’s combined remote operating permit No. 039380-R-319311-032 under section 116 of the country’s Gambling Act 2005. As mentioned above, the regulatory review found some failures in the implementation of the online gambling operator’s processes aimed at ensuring safer gambling and preventing money laundering.
Eventually, Videoslots Limited faced a £2-million penalty package that includes a £1,505,158 payment instead of a financial penalty that is set to be directly used for funding socially responsible causes, a £494,841 divestment, and the company’s agreement to the publication of the review-related facts. The online gambling company is set to cover the UKGC investigative costs worth £11,308.
Videoslots Limited Fails to Comply with Some LCCP and SRCP Rules, the UK Gambling Regulator Says
The UK gambling regulatory body found that in the period from October 2019 and February 2022, Videoslots Limited violated certain Licence Conditions and Codes of Practice (LCCP).
The LCCP breaches that were found as a result of the investigation involved a violation of Licence condition 12.1.1 paragraph 3, which requires licence holders to make sure that their money laundering policies, procedures and controls are effectively implemented, appropriately revised and reviewed regularly in order to make sure they remain effective. The operator is also required to take into account all guidelines published by the country’s gambling watchdog.
Videoslots accepted that it violated the aforementioned licence conditions in the period from March 2021 and April 2022.
The review carried out by the UKGC also found that Videoslots Limited breached Social Responsibility Code Provision (SRCP) 3.4.1 paragraphs 1a, 1b, and 2, which require online gambling licence holders to identify customers who show signs of problem gambling and interact with them in a way that minimises the risk of gambling-related harm. Compliance with the SRCP is a condition of a gambling operating permit under section 82(1) of the Gambling Act 2005.
The company accepted that it failed to fully comply with the aforementioned Social Responsibility Code Provision’s paragraph 1a from March 2021 to October 2022; paragraph 1b from March 2021 to March 2022; and paragraph 2 between October 2019 and February 2022.
The Gambling Commission reported that the investigation and the subsequent regulatory review of Videoslots Limited’s services found that the company had failed to implement the required policies, controls and procedures of the country’s Anti-Money Laundering laws. There were also deficiencies in the online gambling company’s responsible gambling practices and controls, along with some weaknesses in the implementation of its existing procedures, policies and controls.
- Author
Olivia Cole
