Betway Fine
Online sports book Betway achieved the dubious honor of becoming the UK’s most robustly punished gambling operator Thursday, as it agreed to pay a record £11.6 million ($14.6 million) fine to. Betway Hit with Record $14.3 Million Fine for Processing Criminal Proceeds. By Daniel Smyth. Online gaming operator Betway has been fined £11.6 million/$14.3 million for regulatory.
The sanction was linked to the firm’s treatment of high-spending customers. In one instance, the operator failed to carry out source of funds checks on a ‘VIP’ customer who deposited over £8m and lost over £4m during a four-year period. In another, Betway failed to carry out effective social responsibility interactions with a customer who deposited and lost £187,000 in two days.
The investigation found that as a result of a lack of consideration of individual customers affordability and source of funds checks the operator allowed £5.8m of money to flow through the business which has been found, or could reasonably be suspected to be, proceeds of crime. The majority of the cash will now be divested and returned to victims.
The regulator probe also revealed inadequate management oversight and investigations into responsible personal management licence holders are ongoing.
Betway chief executive Anthony Werkman said: “Betway takes full responsibility for the small number of historic cases which have led to this settlement. We have fully cooperated with the investigation and will take further proactive steps to ensure all recommendations and findings are implemented.
“As a responsible, licensed operator extensive work has and will continue to be undertaken to greatly enhance our compliance systems, policies and processes. We have disbanded our VIP program in recognition that tighter controls were needed to ensure our customers were using our services responsibly.
“Betway has no interest in profiting from any stolen funds wagered on its sites. Where we establish that stolen funds have been used, we will ensure that the victim is fully reimbursed. For all other cases, donations are made to charities focussed on socially responsible initiatives.”
Richard Watson, executive director at the Gambling Commission, said: “The actions of Betway suggest there was little regard for the welfare of its VIP customers or the impact on those around them.”
A Christian advocacy group has warned that current laws on gambling are not working as it welcomed online gambling business Betway being hit with a record £11.6 million penalty package for a series of social responsibility and money laundering failings.
Christian Action Research & Education (CARE) said it hopes the Government’s promised review of the 2005 Gambling Act will lead the way for new laws that “prioritise protecting people from gambling related harms”.
CARE’s comments came as it welcomed the Gambling Commission “taking a tough line” with Betway.
The Gambling Commission said that in one instance the operator failed to carry out source of funds checks on a ‘VIP’ customer who deposited over £8 million and lost more than £4 million during a four-year period.
Betway also failed to carry out effective social responsibility interactions with a customer who deposited and lost £187,000 in two days.
An investigation found that as a result of a lack of consideration of individual customers’ affordability and source of funds checks, the operator allowed £5.8 million of money to flow through the business which has been found, or could reasonably be suspected to be, proceeds of crime.
The majority of this money will now be divested and returned to victims, the Gambling Commission said.
The regulator probe also revealed inadequate management oversight and investigations into responsible personal management licence holders are ongoing.
James Mildred, CARE’s communication manager, said it is “absolutely right” that the Gambling Commission should crack down on the sort of malpractice evidenced by Betway.
“To have failed to do checks on high spending customers is highly irresponsible and alongside the other failures to prevent money laundering and problem gambling, it makes the fine entirely justified,” he told The Catholic Universe.
“This story speaks to the wider challenge in that we have a betting industry that has got used to a lack of regulation.
“Meanwhile, there is a lack of support for those with gambling related harms.
“A major part of why we are in this situation is that the current laws on gambling in England and Wales are simply not working.
“The Government has promised a review of the 2005 Gambling Act and this should pave the way for genuine reform.
“We look forward to engaging with that review, as soon as it is launched and will be making the case for new laws that prioritise protecting people from gambling related harms.”
The Betway case is the largest penalty package ever in the UK.
Betway Sweden Fine
Previous cases which were the largest at the time include online gambling firm 888 being hit with a penalty package of more than £7.8 million in 2017 and William Hill facing a penalty package of at least £6.2 million in 2018.
Others include Daub Alderney facing a payment of £7.1 million in 2018 and Ladbrokes Coral Group facing a payment of £5.9 million in 2019.
Picture: A shot of last year’s Betway UK Championship at the York Barbican. (Nigel French/PA).
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