Betway agrees record £11.6 million settlement with Gambling Commission

Posted Friday 27th March 2020

On 12 March 2020, the Gambling Commission (Commission) announced that it had agreed a record £11.6 million settlement with Betway. The settlement relates to a variety of anti-money laundering and social responsibility failings between 2014 and 2018 and comprised a £5.8 million payment in lieu of a financial penalty and an agreement on Betway’s part to divest a further £5.8 million.

The Commission’s investigation looked into seven different customers and stemmed from criminal investigations into proceeds of crime which were notified to the Commission by police authorities. The most notable failings relate to two customers who deposited £8 million over four years and £1.6 million over three years respectively. In both cases financial and problem gambling thresholds were met that should have triggered enhanced monitoring of the client relationship. Betway’s failure to implement adequate policies and procedures contributed to the second customer in particular losing over £700,000. It was later discovered that takings from several of the customers included, or could reasonably be believed to be, the proceeds of crime.

The Commission held that there had been persistent breaches of the Licence Conditions and Codes of Practice (LCCP), in particular Licence Conditions 12.1.1 and 12.1.2 (regarding anti-money laundering) and Social Responsibility Code Provision 3.4.1 (regarding customer interactions).

The public statement accompanying the decision (see here) made clear that operators are expected to ensure that:

1. Customer interaction policies have specific provisions for VIP customers;
2. Where customers display signs of problem gambling, interactions with those customers are as effective as can be;
3. Interactions, and decisions not to interact, are adequately recorded;
4. Policies and procedures for identifying high risk customers are effective; and
5. Customers provide adequate documentation to support their level of spend.

The settlement comes shortly after the Commission agreed with Mr. Green a £3 million settlement for social responsibility and anti-money laundering failings and follows a pattern of ever larger financial settlements being agreed with operators. Notably, the Commission regarded the fact that the breaches concerned issues that it has previously published guidance on as an aggravating factor. It therefore seems likely that the size of financial settlements will not reduce anytime soon. The decision also shows that the Commission is prepared to take robust retrospective action in relation to failings that occurred several years prior.

In light of the increasing size of financial settlements, operators should keep their policies and procedures under regular review to ensure compliance with the LCCP and relevant anti-money laundering regulations.

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This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.

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