UK Gambling Commission Imposes Fine on NetBet for AML and Social Responsibility Breaches
UK Gambling Commission Takes Action Against NetBet
The UK Gambling Commission (UKGC) has announced a penalty of GBP 650,000 against NetBet Enterprises Limited. This action was taken due to failures related to anti-money laundering (AML) measures and social responsibility obligations. The fine collected will be allocated towards socially beneficial initiatives.
Failures in Regulatory Compliance by NetBet
NetBet has agreed to pay the penalty as part of a settlement with the UKGC. Additionally, the company must engage an independent auditor to oversee and ensure ongoing compliance moving forward.
Investigations revealed that NetBet’s AML controls were inadequate, relying excessively on financial indicators without considering the broader context, which allowed certain customers to gamble amounts disproportionate to their income.
The operator also misclassified cases of high gambling activity as low risk, undermining the effectiveness of its risk assessment protocols. Moreover, the UKGC found NetBet’s assessments for AML and counter-terrorist financing (CTF) risks to be incomplete and lacking important considerations.
From a social responsibility perspective, NetBet’s systems for customer interaction and harm prevention were found wanting. Problems included delayed recognition of harm indicators, which were often only detected after manual reviews, weakening efforts to protect players promptly.
It was also highlighted that NetBet provided inaccurate information in its regulatory submissions, further compounding the compliance issues.
UK Gambling Commission Emphasizes Importance of Compliance
John Pierce, the UKGC’s director of enforcement, addressed the seriousness of NetBet’s shortcomings. He stressed that operators failing to meet established AML and social responsibility standards can expect significant regulatory consequences.
NetBet has been required to implement prompt corrective actions, including bolstering its risk assessments, enhancing the detection and response to signs of player harm, and ensuring the accuracy of data submitted to the UKGC.
Further, an independent audit of NetBet’s internal policies and controls will be conducted to verify compliance improvements.
Our priority is to ensure operators uphold the standards expected, and where they do not, we will take firm action.
John Pierce, Director of Enforcement, UK Gambling Commission
This enforcement follows closely after a similar fine imposed on another operator, Platinum Gaming, reflecting the UKGC’s robust approach to maintaining high industry standards.
