Betfred Hit with £3.25m Fine for Regulatory Lapses

UK Gambling Commission’s Investigation Leads to Heavy Fine

In a significant development in the betting industry, the UK Gambling Commission (UKGC) has imposed a hefty fine of £3.25m on Done Bros (Cash Betting) Limited, trading as Betfred. This decision follows an investigation by the regulator that revealed severe social responsibility and anti-money laundering failures.

The probe carried out by the Commission unearthed that Betfred, a UK-based Sportsbook and Online Casino operator exhibited numerous social responsibility failures, including insufficient controls to protect new customers. The company was found guilty of not adequately monitoring high-velocity spending and duration of play, thereby exposing customers to the risk of substantial losses without safer gambling interaction.

Interestingly, Betfred was found to operate under the assumption that customers were not at risk of harm simply because they were winning players. This flawed perspective further underscored the lack of necessary safeguards to protect customers from potential gambling-related harms.

Regulatory Failures Extend Beyond Social Responsibility

While the social responsibility failures are concerning, Betfred’s regulatory oversights did not stop there. The company was also found lacking in its anti-money laundering controls. This included poor record keeping and setting financial alert thresholds too high, which hampered the identification of potential money laundering activities.

Furthermore, Betfred failed to consistently obtain appropriate ‘know your customer’ identification and Source of Funds (SoF) documentation from its customers when its thresholds were met. The company placed undue reliance on open-source information without taking further steps to corroborate customers’ SoF information.

These regulatory failings spanned various periods between January 2021 and December 2022, indicating a sustained period of non-compliance.

Kay Roberts, Executive Director of Operations at the Gambling Commission, emphasized the importance of high standards across the industry. She stated, “Gambling is a legitimate leisure activity enjoyed safely by millions but it is vital that every single operator, either online or offline, has in place effective safeguards to prevent harm or crime.”

This case serves as a stern reminder to all operators in the gambling industry about the critical importance of adhering to regulations designed to protect customers and prevent illegal activities.

The popularity of online casinos in Ireland reflects a broader trend in the UK gambling market. Online gambling has become increasingly popular in the UK over the past decade, especially among younger adults.