UKGC Fines BetVictor £2m Following Social Responsibility & AML Failures

UKGC Fines BetVictor £2m after a March 2020 investigation highlighted breaches against fair terms, AML, and social responsibility! (Image from gamblingcommission.co.uk)

Upon finding fairness, social responsibility, and money laundering failures during an investigation, the UK Gambling Commission has today announced that it has fined BV Gaming Limited, BetVictor’s parent company,  £2m (€2.39m / $2.67m). This comes as a result of a compliance assessment performed on the company back in March 2020.

The auditors discovered the firm had breached numerous licensing conditions related to fair and transparent terms of practices, the prevention of money laundering, social responsibility via customer interaction, and anti-money laundering measures.

This is not the first licensee to face fines so far in 2022, and certainly not the last. BV Gaming joins two other UK gambling platforms that have to pay financial penalties for failure to adhere to UKGC rules and regulations.

• Player Spending/Auditing: The UKGC disclosed that BV Gaming Limited, which operates Heart Bingo and Parimatch alongside BetVictor, had not adequately spotted or acted upon risk factors including, but not limited to, players’ spending (to prevent potential problem gambling issues) and use multiple casino accounts. The regulatory body also claimed the risk assessment in place at BV Gaming lacked ‘the details/play scrutiny’ required of a company of its size.
• Anti-Money Laundering: The company’s AML risk assessment also faced scrutiny for not meeting the required standards at the time of the investigation. It was inadequate for identifying money laundering and terrorist financing risks.
• Social Responsibility: The UKGC added that the group did not adequately comply with the UKGC’s strict social responsibility code provision. It pointed out that the investigation found the firm’s responsible gambling policies, controls, and practices were weakly implemented and contained numerous deficiencies.

Director of Enforcement (UKGC) Commented: Leanne Oxley, released a statement with words to the effect of, ‘The UKGC’s framework set out to ensure the UK gambling markets provide a fair and safe gambling industry free of crime and reduced risk of the obvious issue of problem gambling. BetVictor failed to comply with rules outlined within the framework to help achieve these objectives’.

Penalties BetVictor Face for UKGC Compliance Failures

The UKGC demands that BV Gaming pay a financial settlement somewhere in the region of £2 million. This consists of £325,000 gained by BetVictor in GGY due to its failings, and a financial penalty of £1.72 million added on top. The £2 million will go towards the UKGC’s 3-year National Strategy to Reduce Gambling Harms. As well as the above financial penalties, BV Gaming also had to agree to the publication of this statement and pay the UKGC’s £11,000 costs accrued during the investigation.

Adding to her earlier statement, Leanne Oxley issued a warning to UK gambling operators when she said something along the lines of ‘Non-compliance is not an option for operators that want a piece of the UK gambling market. The UKGC will identify failures and hit operators hard’.

The UKGC splits opinions, but it is fair to say that while some operators complain that some of the UKGC’s regulations make it tough for operators to survive in the UK, there can be little argument that failing on such a level as BetVictor is not tolerated in the UK market. These rules were in place to help ensure safe and fair environments for players and to help prevent money laundering and the funding of terrorist groups.

Often seen as the villain on the UK gambling scene, the UKGC is never slow to punish online gambling entities. This is regardless of the gambling entity’s size. However, the authority does protect UK citizens and ensure a fair deal. Unlike many global regions, players can read T&Cs laid out by a UKGC casino and be sure the information is legal and binding. Casinos are also obliged to answer ‘ALL’ customer complaints. If the casino fails to honour these T&Cs or deal with a customer dispute, players can use the UKGC’s free player dispute service. To this end, the UKGC rightly earned itself the winner of the 2021 IAGR Regulatory Excellence Award,