Bet365 has agreed to a regulatory settlement with the UK Gambling Commission, to pay just over half a million pounds in penalties for identified failings in social responsibility and anti-money laundering (AML) practices.

The settlement relates to two entities under bet365: Hillside (UK Gaming) ENC, which holds bet365’s online bingo and casino licenses, and Hillside (UK Sports) ENC, which operates under the company’s online sports betting license. The former will pay £343,035, while the latter will contribute £239,085, bringing the total penalty to £582,120.

These failings were identified during a compliance assessment by the Gambling Commission in March 2022. The assessment revealed that bet365’s interactions with customers were frequently not tailored to the specific customer journey or spectrum of harm, rendering them ineffective. This lack of meaningful interaction is a significant concern in the gambling industry, where understanding and mitigating the potential harm to customers is a crucial aspect of social responsibility.

Furthermore, the assessment found that bet365’s Early Risk Detection System, designed to understand the impact of individual interactions on a customer’s behaviour and determine whether further action was required, was not demonstrably effective. This system’s ineffectiveness, coupled with an approach to evaluation that prevented the company from ascertaining whether a customer had read and understood the information or advice provided, highlighted significant shortcomings in bet365’s social responsibility practices.

Case study in AML and social responsibility compliance

In terms of AML policies and procedures, the Commission found that bet365’s enhanced customer due diligence and ‘know your customer’ triggers were ineffective in managing money laundering risk. There were also failings in financial sanctions checks on new customers prior to their first deposit and independent verification checks on customers. These findings underscore the importance of robust AML procedures in the gambling industry, where large sums of money can change hands rapidly and anonymously.

Kay Roberts, executive director of operations at the Gambling Commission, stated, “The policy and procedural failings may not have been as severe as those at other gambling businesses in recent years but they were failings nonetheless. We expect high standards from operators in terms of keeping gambling safe, fair and crime-free, and will always take action to correct any failings. This operator is very aware that a repeat of these failings will result in escalating regulatory action.”

All £582,120 of the penalty will be directed towards socially responsible causes as part of the regulatory settlement. The Gambling Commission noted bet365’s timely co-operation with the investigation and the extent of steps taken to remedy the breach. This case serves as a reminder to all operators in the gambling industry of the importance of maintaining high standards in social responsibility and AML practices.

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