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.
Betway will pay £5.8 million back to the victims of the crimes committed by its customers, plus another £5.8 million to the Gambling Commission that will be spent to reduce gambling addiction. Betway accepted to pay the penalty and improve their existing processes. Facebook0Tweet0LinkedIn0 Betway is paying a high price for getting on the U.K. Gambling Commission’s (UKGC) bad side. The firm has been ordered to pay a record £11.6m settlement for accepting stolen funds and ignoring cases of gambling addiction. The regulator cites an instance where Betway failed to do their due dillgence on a “VIP” customer who deposited. Online gambling firm Betway has been hit with a record fine of £11.6m for failing to protect gambling addicts and to prevent people betting with stolen money. Betway has been hit with a massive £11m (€12.37m) fine by the UK Gambling Commission (UKGC), for multiple failings relating to VIP customers. The Commission’s investigation into Betway found multiple social responsibility and anti-money laundering failings, including one case in which a customer deposited and lost £187,000 in the space of just 48 hours.
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”.
Betway fine is biggest in history The Betway case is the largest penalty package against a gambling firm ever prosecuted in the UK and comes as regulators ramp up pressure on the industry to do more to protect customers.
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. Buzzluck casino no deposit.
“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.
Beltway Fine Wine And Spirits
“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.
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).
The post CARE welcomes £1.6m Betway fine, saying current gambling laws not working appeared first on The home of Catholic news and comment from the UK.
< Previous - Next >
Betway will pay a Gambling Commission fine of £11.6m ($14.8m) after being found guilty of a series of failings in relation to its VIP customers.
In an investigation into the operator's high-spending customers, the Gambling Commission found multiple cases of “social responsibility and money laundering failings.”
In one case, Betway failed to carry out social responsibility interactions with a customer who deposited and lost £187,000 in two days.
In a second instance, the operator did not carry out adequate source of funds checks on a VIP customer who deposited over £8m and lost over £4m in a four-year period.
Beltway Fine Wine & Spirits Towson Md
Due to a lack of affordability and source of funds checks, the Gambling Commission calculated Betway had allowed £5.8m to flow through the business “which has been found, or could reasonably be suspected to be, the proceeds of crime.”
In addition to its £11.6m fine, Betway must implement measures to ensure improvements are made.
Betway Fine
Richard Watson, Executive Director of 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.
“We have set tight deadlines for when we expect to see progress and if we do not see the right results then we will have no choice but to take further action. This case highlights again why progress needs to be made.”
When Gambling Insider contacted Betway for comment, CEO 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 Fine Bar
“Betway has no interest in profiting from any stolen funds wagered on its sites. Where we establish stolen funds have been used, we will ensure the victim is fully reimbursed. For all other cases, donations are made to charities focused on socially responsible initiatives.”