Videoslots Receives Hefty Fine in the UK for Customer Protection and AML Failings
Social responsibility failures and AML violations motivated the UK Gambling Commission (UKGC) to issue Videoslots a substantial £2 million ($2.53 million) fine. The penalty reflects Videoslots’ repeated misconduct and the AML’s commitment to enforcing stringent regulations and upholding responsible gambling practices. The operator acknowledged its shortcomings, vowing to implement urgent updates and bring its player protection mechanisms to the industry standard.
The Operator Ignored Repeated Warnings
According to the UKGC’s investigation, Videoslots failed in several vital areas. Between November 2021 and January 2022, a customer lost nearly half of his deposited £112,225. Signs like long gambling streaks continuing into the early hours and losses exceeding safe thresholds should have triggered several fail safes, but the operator let such behavior continue for months.
The problem case also revealed significant AML deficiencies. The operator’s systems and controls to detect and prevent money laundering activities were inadequate, as Videoslots had insufficient analysts to manage the substantial volume of data. The UKGC noted that the issues were also present with other customers, indicating an endemic problem.
AML analysts failed to properly implement all actions required by the licensee’s AML policies and procedures.
UKGC report
In 2019 Videoslots received a £1 million fine for KYC violations. According to the regulator, the company’s most recent failings directly followed multiple warnings about insufficient due diligence and AML safeguards, thus exposing customers to potential gambling harm. The £2 million penalty reflects the severity of these breaches and should provide sufficient incentive for change.
Regulator Vigilance Remains Paramount for a Safe Market
Videoslots’ UK failings mark the company’s second clash with regulators in recent months. March saw the company enter a dispute with the Dutch regulator for allegedly allowing unauthorized access to its services. The operator hotly contested the mammoth €9.9 million ($10.5 million) fine, denying all allegations.
Despite its objections in the Netherlands, Videoslots has acknowledged its UK shortcomings and committed to implementing remedial measures to rectify the identified issues. The operator recognized the importance of stricter adherence to licensing obligations, improving customer due diligence processes, and bolstering player protection mechanisms. Videoslots’ future actions will be crucial in rebuilding trust and demonstrating a genuine commitment to responsible gambling practices.
The £2 million penalty sends a clear message to operators that non-compliance will not be tolerated. The UKGC’s efficiency in pursuing regulatory breaches is commendable, as it fosters a safer gambling environment that puts player well-being at the forefront. It highlights the need for the industry as a whole to prioritize responsible gambling, robust player protections, and effective AML measures.