Betfred, a prominent British gambling operator, has been ordered by the industry regulator, the Gambling Commission, to pay a substantial sum of £3.25 million due to a series of Anti-Money Laundering (AML) and social responsibility failures.
These breaches of license conditions occurred over the span of January 2021 to December 2022. Betfred operates a vast network of 1,750 high street betting shops in addition to their online platform and mobile app.
The investigation carried out by the Gambling Commission revealed significant deficiencies in Betfred’s security measures.
They had failed to implement adequate controls to safeguard new customers and monitor high-velocity spending and the duration of play.
Their AML failures were multifaceted and included poor record-keeping practices and setting financial alert thresholds too high.
Additionally, Betfred did not consistently obtain the necessary “know your customer” identification and Source of Funds (SoF) documentation when the thresholds were met.
The company also overly relied on open-source information without taking further steps to verify customer SoF details.
These lapses in compliance occurred over multiple periods during the stated timeframe, which raised concerns about the company’s commitment to maintaining regulatory standards.
Kay Roberts, the executive director of operations at the Gambling Commission, emphasized the importance of raising industry standards to protect consumers.
She highlighted that while there has been increased attention on online gambling, this case underscores the need to uphold standards across both online and offline operators.
The goal is to ensure that gambling remains a safe and legitimate leisure activity while minimizing the risk of harm or criminal activities.
All £3.25 million from the settlement will be allocated to support socially responsible causes.
Betfred’s social responsibility failures were also noted, which included insufficient measures to protect new customers and monitor high-velocity spending, putting customers at risk of significant losses without appropriate interventions.
The company made assumptions that winning customers were not at risk and failed to engage in safer gambling interactions, even when a customer staked a substantial £517,499 over a two-month period.
Furthermore, a lack of evidence of the evaluation of individual customer interactions and poor record-keeping hampered the effectiveness of future interactions.
In conclusion, Betfred’s hefty financial penalty serves as a reminder to all gambling operators of the importance of adhering to AML and social responsibility regulations to safeguard customers and promote responsible gambling practices.