UK Gambling Commission Fines Betfred for AML and Social Responsibility Failures

Betfred Fined for Failing to Detect Risk in Transactions

The United Kingdom Gambling Commission (UKGC) has once again penalized a gambling operator for failing to uphold social responsibility and anti-money laundering (AML) standards. This time, the spotlight is on Betfred, which was found lacking in its systems to properly detect at-risk players and suspicious financial transactions.

System Shortcomings and Policy Gaps

The UKGC’s investigation revealed that Betfred’s B3 gaming machine systems did not effectively monitor customer spending to flag potentially risky transactions, which could be associated with fraudulent activity. Thankfully, no actual evidence of money laundering was discovered during the review.

Moreover, Betfred lacked a clear, formal policy for identifying and managing customers who might be subject to financial sanctions. The company also fell short in assessing player vulnerability and failed to recognize individuals showing clear signs of problem gambling.

Customer service interactions were also criticized as falling below expected standards. Due to these breaches, the UKGC imposed a fine of £825,000 on Betfred and mandated that the company engage a third-party auditor to help prevent future regulatory failures.

This is not Betfred’s first penalty, as earlier in 2023 the operator was fined £3.25 million for comparable regulatory violations.

Commitment to Improvement Following Penalty

John Pierce, the UKGC’s director of enforcement, pointed out that these failures were mainly technical in nature, rather than resulting from specific incidents. He recognized Betfred’s prompt actions to address and correct the issues identified.

However, Pierce stressed that these lapses were still unacceptable. He noted the independent audit will be critical to ensure Betfred’s processes fully comply with UKGC’s social responsibility and AML requirements moving forward.

“We fully acknowledge the improvements the operator has already made since these issues were identified, and the independent audit will be key to confirming these changes are sustained so that the operator continues to be fully compliant with social responsibility and anti-money laundering requirements.”

John Pierce, Director of Enforcement, UKGC

Mark Pearson, Betfred’s head of corporate affairs and communications, responded to the penalty by reaffirming the company’s dedication to strengthening its AML and social responsibility policies. He also expressed relief that no evidence of criminal spending was found in their betting shops.