Casumo and Videoslots fall foul of UK regulator

Casumo and Videoslots fall foul of UK regulator

Thursday, November 29, 2018 Posted by News Team
UK
Operators latest to face financial penalties in ongoing UKGC investgiation

The UK Gambling Commission’s crackdown on licensees failing to comply with anti-money laundering and social responsibility controls has seen Videoslots and Casumo hit with financial penalties. 

Casumo has been hit with a £5.85m fine as a result of serious deficiencies identified by the Commission’s investigation, while Videoslots has agreed a £1m settlement for its failings. 

“I hope today’s announcement will make all online casino operators sit up and pay attention, as our investigations found that a large number of operators and their senior management were not meeting their obligations,” UKGC chief executive Neil McArthur said. 

“It is not enough to have policies and procedures in place,” he said. “Everyone in a gambling business must understand its policies and procedures and take responsibility for properly applying them.”

The assessment of Casumo’s operating practices revealed a lack of appropriate risk assessment processes. It was also found to have failed to carry out due diligence checks on customers, and as a result was unaware of the source of some customers’ funds, and failed to identify signs of gambling addiction in others. 

In addition to its fine, it must also appoint a qualified Money Laundering Reporting Officer, who must take annual refresher training courses alongside its senior management and key staff. Its anti-money laundering and social responsibility processes must also be subject to a regular external audit. 

Videoslots, meanwhile, was found to have failed to properly establish the source of customer funds, which saw an individual deposit around £211,000 and lose around £45,000. Another was able to deposit around £17,405 in stolen funds, despite failing to verify their identity. 

In one case, a customer was able to deposit £412,000 without Videoslots intervening at any point.

As a result it too will have to have key staff members undergo annual anti-money laundering training, while it also paid £12,000 towards the Gambling Commission’s investigative costs. 

The regulator warned that further action was likely, with the ongoing investigation having already seen Stride Gaming’s Daub Alderney fined £7.1m earlier this month. Nine operators have been warned over their future conduct, and six remain under investigation. Another company, Dr Vegas operator CZ Holdings, has surrendered its UKGC licence after a review into its practices was launched. 

The regulator has also taken action against individuals, with three personal licence holders surrender their certification, four warned and two sent letters advising them on their future conduct. Three more licence holders are still being investigated.

McArthur added: “Anyone in a position of authority needs to be aware that we will not only act against businesses when we take regulatory action - we will also hold individuals to account where they are responsible for an operator’s failings.”

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