Gambling firm Betway struck with record ₤ 11.6 m penalty
12 March 2020
Online betting firm Betway has been hit with a record charge of ₤ 11.6 m for failings over customer security and money-laundering checks.
The Gambling Commission stated Betway failed to inspect the source of funds of one customer who deposited over ₤ 8m and lost over ₤ 4m in a four-year duration.
It also stopped working to efficiently engage with a consumer who transferred and lost ₤ 187,000 in 2 days.
The penalty package is the most significant to date faced by a UK gambling company.
The Gambling Commission's examination stated the failings were linked to negotiations with 7 of Betway's high-spending clients.
William Hill website Mr Green to pay ₤ 3m charge
'My spouse stole ₤ 300,000 to money his betting habit'
It said that "as an outcome of an absence of consideration of private clients price and source of funds checks, the operator permitted ₤ 5.8 m of money to flow through business which has been discovered, or might fairly be presumed to be, proceeds of criminal activity".
The commission stated the investigation had also exposed "insufficient management oversight", adding that a probe "into accountable Personal Management Licence holders" was continuing.
"The actions of Betway suggest there was little regard for the welfare of its VIP consumers or the yohaig code influence on those around them," stated Richard Watson, executive director at the yohaig code Gambling Commission.
"As part of our continuous program of work to make betting more secure, we are pushing the industry to make fast progress on the locations that we consider will have the most significant effect to secure consumers," he added.
"The treatment and handling of high-value clients is a significant piece of that work and operators remain in no doubt about the requirement to tackle the issue at speed."
