The UK Gambling Commission has levied a £6.0 million fine against Gamesys, a subsidiary of Ballys Corporation, following a compliance assessment in May 2022.
The fine is related to Gamesys’ activities spanning from November 2021 to July 2022.
Gamesys operates 16 UK-based websites, including Ballycasino.co.uk, Doublebubblebingo.com, Jackpotjoy.com, and Megawayscasino.com.
As part of the regulatory response, Gamesys will undergo a third-party audit to ensure effective implementation of Anti-Money Laundering (AML) and safer gambling policies.
Kay Roberts, the Commission’s Executive Director of Operations, emphasized the regulator’s commitment to ensuring fair, safe, and crime-free gambling practices.
Roberts stated that they take their responsibility seriously and will take significant regulatory action when they identify policy and procedure failures.
The Commission highlighted various social responsibility failures during its investigation, including Gamesys’ failure to consistently identify customers at risk of gambling-related harm.
Gamesys sometimes relied on checks regarding a customer’s financial history, such as bankruptcy or insolvency, as indicators of gambling harm.
This approach was deemed inappropriate.
Additionally, the Commission raised concerns about deposit limits not identifying harm risks for certain customers.
Some alarming examples included a player depositing £8,255 within three days of opening an account, another losing £5,968 within five weeks, and yet another losing £17,482 within 34 days.
Further social responsibility lapses included Gamesys failing to interact with customers at risk of or experiencing gambling-related harms.
In some cases, responsible gambling interactions only occurred after significant losses, with recommendations of new games and promotions, which the Commission criticized.
The Commission also faulted Gamesys for not recording sufficient details about interactions, considerations, and decision rationales, despite these being part of the licensee’s responsible gambling procedures.
Regarding AML compliance, the Commission noted several failures, such as customers bypassing AML triggers/thresholds and making substantial deposits without AML checks.
There were instances of players depositing large sums over short periods, raising concerns about customer due diligence and reliance on third-party information.
Gamesys’ reinvestment of winnings policy was also criticized for not sufficiently mitigating the risk of funds originating from illegitimate sources.
The Commission specified the breaches of license conditions that led to the fine, including those related to AML and social responsibility.
Gamesys cooperated with the investigation and took corrective actions, while the regulator found no evidence of criminal funds being deposited by the specific customers under review.
In conclusion, the £6.0 million fine and additional license condition imposed on Gamesys reflect the UK Gambling Commission’s commitment to upholding fair and responsible gambling practices in the UK’s online gaming industry.