Two online gambling brands operating as part of Kindred Group – 32Red Limited and Platinum Gaming Limited – are set to pay a monetary fine worth £7.1 million after the UK Gambling Commission (UKGC) found they breached anti-money laundering and social responsibility laws.
As officially announced by the country’s gambling regulatory body, 32Red Limited, which currently operates the 32red.com website, will pay a total of £4,195,655. The other brand owned and operated by Kindred Group, Platinum Gaming Limited, which runs the unibet.co.uk platform, will pay £2,937,599. Apart from the monetary penalties faced by the brands, both gambling operators have also been handed out an official warning after the completion of the UKGC investigation.
The executive director of the UK Gambling Commission, Kay Roberts, shared that the failures found during the regulatory probe clearly highlighted the fact that both operators had failed to interact with customers in a way that would tackle the risk of possible gambling-related risks and harm. Apart from that, the investigations held by the UKGC also unveiled that the operators had overlooked their policies and procedures, both in regard to anti-money laundering and customer account practices.
32Red Faces Regulatory Action for AML and Social Responsibility Failures
Following a review of the operating licence that the UK gambling regulatory body undertook against 32Red Limited, it was found that the online gambling licence holder violated paragraphs 2 and 3 of its licence condition 12.1.1 regarding the prevention of money laundering and terrorist financing. The company was also found to have breached the first paragraph of its licence condition 12.1.2 regarding the measures for gambling companies based in foreign jurisdictions. Apart from that, the Gambling Commission found that 32Red failed to stay in line with paragraphs 1 and 2 of condition 3.4.1 of the Social Responsibility Code of Practice (SRCP).
The UKGC confirmed that the online gambling company cooperated with the regulatory team throughout the investigation and showed readiness to take corrective actions to address the identified failures mentioned above.
In line with the Indicative sanction guidance, the Statement of principles for determining financial penalties, and its own licensing, compliance and enforcement policy statement, the UK Gambling Commission has decided to impose a financial penalty worth £4,195,655 on the operator. Apart from that, 32Red saw some additional conditions attached to its operating permit, as well as an official warning under Section 117(a) of the country’s Gambling Act 2005.
Platinum Gaming Limited to Pay £2,937,599 for AML and Social Responsibility Failings
The operating licence of the other online gambling brand operating as part of Kindred Group – Platinum Gaming Limited – has also been reviewed by the UK Gambling Commission.
As part of the probe, the country’s gambling watchdog found that the company violated paragraphs 1, 2, and 3 of its licence condition 12.1.1., which regulates the prevention of money laundering and terrorist financing. Platinum Gaming also breached another anti-money laundering licence condition – 12.1.2 – which involves measures that companies based in foreign jurisdictions are required to observe. The UKGC found that the company did not stay in line with paragraphs 1 and 2 of condition 3.4.1 from the Social responsibility code of practice (SRCP) and also breached SRCP condition 3.9.1 regarding individual customers’ identification.
The online gambling operator cooperated with the Gambling Commission investigators and took measures to address the identified social responsibility and anti-money laundering failures. Apart from the £2,937,599 fine it will have to pay for its transgressions, Platinum Gaming Limited faces a warning issued under Section 117(a) of the Gambling Act 2005 and some additional conditions attached to its licence.
- Author
Olivia Cole
