UKGC issued a £5.85 Million Financial Penalty to One of Its Licensees

All online operators doing business in the UK are required to adhere to the standards set by the United Kingdom Gambling Commission (UKGC). The country’s regulatory body is rigorous and will react to the slightest infraction of these rules.

The UKGC is known to be very harsh when it comes to issuing fines, and the latest operator to discover that is Daub Alderney Limited. The company will have to pay a hefty financial penalty of £5.85 million for breaching anti-money laundering procedures and failing to adhere to social responsibility.

A Blow for the New Owner

Daub Alderney Limited became part of the British brick and mortar gaming giant Rank Group in 2019, in a deal worth around £115 million. At the moment, it owns and operates a number of online gambling sites, offering its customers a wide variety of services.

The Gambling Commission posted an official press statement to announce the operator has been given a formal warning regarding the said violations. According to the UKGC, the infractions took place between January 2019 and March 2020. The British gambling watchdog explained that even though some of the breaches had occurred before the acquisition by Rank Group, the operator had faced the full consequences of failing to obey the regulations.

Commenting on the social responsibility issues tied to Daub Alderney Limited, the regulator said the online operator had failed to implement policies and procedures required to timely identify gambling-related harms through interaction with its customers. The UKGC revealed that a player had lost more than £43,000 in just four months, while Daub Alderney Limited failed to do anything to stop him. The player in question used four different credit cards to gamble, requesting withdrawals of over £133,000.

The operator was also found to have breached anti-money laundering regulations. According to the Gambling Commission, Daub Alderney Limited failed to adopt appropriate procedures, policies and control mechanisms to prevent its customer from amounting to £50,000 in deposits without providing any sort of evidence about the source of those funds.

Unfortunately, that’s not all. Another player had similar problems after he was allowed to spend more than £41,000 in just thirty days. No suitable source of funds was provided in this case as well. A third gambler was permitted to lose around £53,000 during an eight-month period, while his only source of funds was that he had lived in a house whose value was estimated at approximately £233,000.

Comments from the UKGC

Speaking about the latest move, Helen Venn, Executive Director at the Gambling Commission, said the investigation involving Daub Alderney Limited had been part of a planned activity aimed at checking compliance of the regulator’s licensees.

Venn warned all online gambling operators holding a UKGC license that the organisation plans to continue to take action against all those who failed to adhere to the Commission’s high standards. When it comes to Daub Alderney, she pointed out that most of the infractions had happened before Rank Group had acquired the operator and commended the company on making significant improvements since.

But she explained that the operator’s shares had passed to another investor didn’t affect its culpability and subsequent fine. Venn added that no one could avoid the consequences of its wrongdoing just because it had a new owner.

The most significant financial penalty issued by the UKGC this year came in March when Casumo was fined £6 million for violating anti-money laundering regulations and failing to implement responsible gambling protocols.

UKGC logo on slot machine background
The majority of infractions took place before the new owner took over.

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