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The United Kingdom Gambling Commission has concluded a recent investigation into two casinos. Additionally, the UKGC has concluded that the two casinos have not met social responsibility expectations. These failures will result in each business paying a substantial fine.
UKGC Fines Two Casinos For Social Responsibility Breaches
The United Kingdom Gambling Commission has announced the results of a recent investigation into two casinos. The UKGC will be penalizing both Rank Digital Gaming Limited and Annexio Limited. Additionally, each company will be required to pay a significant fine as part of a larger settlement.
Rank Digital Gaming Limited will pay a regulatory settlement of £700,557. However, this fine is for both social responsibility failures as well as money laundering shortcomings. The company trades in the United Kingdom through the following brands:
- Bella Casino
- Grosvenor Casinos
- Mecca Bingo
- Mecca Games
Additionally, the second company, Annexio Limited, will pay a total of £612,000 into the larger regulatory settlement. Annexio Limited trades in the United Kingdom as LottoGo.com. The brand was also found in breach of social responsibility. LottoGo.com failed to take appropriate money laundering safety measures as well. The UKGC takes these failures very seriously.
Approximately £1.3 million will go to the National Strategy to Reduce Gambling Harms. However, this is a three-year strategy aimed to bring together different sectors to work toward reducing the harm of problem gambling. The United Kingdom Gambling Commission leads the initiative.
A Breakdown of the Penalties Each Casino Faces
The Commission has investigated both brands extensively. They have issued a public statement that outlines their findings in each case.
Annexio Limited, trading as Affiliate Empire and LottoGo.com, was hit with three fundamental failings.
- The first is a breach of License Condition 12.1.1. This clause covers measures that must be taken to ensure no money laundering is happening. Additionally, operators must also implement reasonable measures to prevent terrorist financing.
- However, the second is a failure to comply with Social Responsibility Code Provision 3.4.1. This section of the SRCP outlines appropriate actions to take for customer interaction. Brands are expected to expend a reasonable amount of effort in communicating problem behavior. In addition, operators must track red flag behaviors from accounts.
- Finally, the company was found in breach of License Condition 15.2.1. This covers expectations for reporting.
Rank Digital Gaming Limited was also penalized for three key failings.
- The first is failure to comply with SRCP 3.4.1. Between October 2019 and February 2021, they were found in breach of this customer interaction clause.
- Additionally, the second is a failure to follow SRCP 3.9.1. This section of the code outlines the steps operators must take to identify individual customers.
- The final penalty was a failure to adhere to SRCP 3.5.3. This portion of the code covers self-exclusion measures.
UKGC “Expects High Standards” and Will Enforce Those Expectations
In a statement on behalf of the UKGC, Executive Director Helen Venn said:
“We expect high standards from operators to ensure gambling in Britain is safe and crime free. Those businesses that fail to meet these standards will find themselves facing costly regulatory action.”
In both cases, operators are expected to review and refine their existing policies to meet the standards laid out. Additionally, both public statements note that operators are legally obligated to comply with all regulations as a condition of licensure.
More About the National Strategy to Reduce Gambling Harms
The fines imposed on both casinos will go toward reducing any harm caused by problem gambling behaviors. The National Strategy to Reduce Gambling Harms is a combined effort among healthcare, charities, regulators and businesses. The aim is to effectively take on the issue of creating a public health prevention plan.
The strategy also aims to increase access to educational resources. This will help UK citizens find the right blend of interventions to meet their needs. Additionally, this initiative intends to deliver national treatment and support options.
The Commission is taking its role in the plan very seriously. The UKGC continues to keep operators under close scrutiny. In addition, the Commission is supporting further research into strategies to improve gambling harms research. Under this new initiative, work has begun on a National Data Repository to support greater research.
Talking about the strategy, Chairman William Moyes stated:
“The success of this strategy relies on everyone working together to reduce gambling harms through prevention and education, and treatment and support. Everyone has a role to play to combat gambling harms and I’m delighted that the health sector, charities and businesses are showing their commitment to get behind the strategy and make it a success.”