Videoslots will pay a £2 million ($2.17 million) penalty over social responsibility and anti-money laundering failures uncovered by the UK Gambling Commission. The operator, which runs videoslots.com, videoslots.co.uk, and mrvegas.com, will pay the money as part of a settlement with the Commission.
According to the UKGC, between October 2019 and February 2022, the company failed to ensure that customers displaying risk behaviors were identified as potentially experiencing harm because responsible gambling reviews were not undertaken as early, or as well, as they should have been.
Videoslots also failed to identify whether a customer was at risk of harm. This was because the firm did not consider whether the amount being deposited or lost was appropriate. The Commission also noted how customers showing indicators of harm continued to gamble significant amounts.
Videoslots Limited will pay £2 million for social responsibility and anti-money laundering failures.
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— Gambling Commission (@GamRegGB) June 15, 2023
As for anti-money laundering failures, these included not implementing its own risk-based processes appropriately due to significant delays in conducting the required action, such as an AML review or request for a source of funds following a trigger in its processes.
Videoslots also failed to fulfill elements of customer due diligence as early as intended, in accordance with its own risk-based approach. In addition, the regulator said the operator did not have sufficient AML analysts to process data or undertake AML account reviews.
Concluding the case, the Commission said there were significant weaknesses in Videoslots’ ability to implement its policies and procedures for AML and safer gambling purposes. Videoslots also accepted this conclusion.
The regulator noted how Videoslots has taken steps to rectify the breaches, acted in a timely manner, and was cooperative with the investigation. In addition, the Commission said the operator was transparent and outlined how operational effectiveness was severely impacted during the relevant period by the pandemic.
However, due to the nature of the breaches, the Commission agreed to impose a financial settlement. This included a £1.5 million ($1.6 million) payment in lieu of a financial penalty, which will be directed towards socially responsible causes, as well as a divestment of £494,842 ($538,808). In addition, £11,308 ($12,312) will go towards covering the costs of the investigation.
Original article: https://www.yogonet.com/international/news/2023/06/15/67542-ukgc-mandates-videoslots-to-pay-21m-over-social-responsibility-aml-failures
