UKGC Imposes £650,000 Fine on Videoslots for AML and Player Protection Failures
Videoslots Faces Significant Penalty from UK Gambling Commission
Videoslots has been hit with a £650,000 fine by the UK Gambling Commission (UKGC) due to breaches related to anti-money laundering (AML) protocols and player safety standards. Alongside the hefty fine, the operator has received a formal warning and is required to undergo an independent audit. This development adds to the increasing regulatory pressure on Videoslots, which already faces scrutiny from regulators across Europe.
Key Failings Identified by the Regulator
The UKGC found that Videoslots operated brands including Videoslots, Mr Vegas, and Mega Riches, but heavily depended on automated systems that failed to effectively monitor and respond to actual customer behavior. These tools were unable to detect clear signals of potential harm. For example, one customer lost £6,550 over three active gambling days within two months without receiving any intervention or contact from the operator.
Problems were also found with the deposit limit mechanisms. Limits were calculated monthly without considering the timing of a customer’s initial deposit within that period. As a result, some players exceeded their set limits by significant margins—for instance, one player with a £3,000 limit lost £5,000 in a month, and another with a £2,000 limit lost £7,500 in just 18 days.
AML breaches were particularly concerning. Staff overly relied on algorithms which failed to elevate red flags. In one case, a customer deposited over £75,000 within 16 days using prepaid vouchers and withdrew the funds into four separate bank accounts, all while accessing the account from outside Great Britain with no checks triggered.
Previous Scrutiny and Regulatory Criticism
John Pierce, the UKGC’s Director of Enforcement, sharply criticized Videoslots’ dependence on automated systems that lacked sufficient oversight and early risk detection. He highlighted the Commission’s ongoing worries about open-loop payment systems, especially prepaid vouchers that can be purchased anonymously or with cryptocurrency via third-party platforms.
“The investigation identified a serious example where prepaid digital vouchers had been used for gambling without effective oversight and early intervention.”
John Pierce, UKGC Director of Enforcement
The UKGC also pointed out that staff often assumed unusual player behavior was due to recycled winnings without proper investigation. Pierce emphasized that operators using voucher-based payment methods must immediately notify regulators if they have not done so already. The Commission has meanwhile updated its AML guidance to address the rising concerns linked to these payment types.
Heightened Pressure Across European Markets
This penalty in the UK comes shortly after Sweden’s gambling authority fined Videoslots 12 million SEK (€1.1 million) earlier this year. The Swedish regulator found Videoslots did not respond promptly or decisively to indications of harmful gambling behavior. With penalties in multiple jurisdictions, Videoslots now faces intensified regulatory surveillance from leading European markets.
