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Online gambling firms fined in crackdown | Online gambling firms fined in crackdown |
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Three online casino companies will pay penalties of £14m and one has been prevented from operating in the UK following a crackdown by the industry regulator. | Three online casino companies will pay penalties of £14m and one has been prevented from operating in the UK following a crackdown by the industry regulator. |
The Gambling Commission said the three firms did not have "effective safeguards" to prevent money laundering and harm to customers from gambling. | The Gambling Commission said the three firms did not have "effective safeguards" to prevent money laundering and harm to customers from gambling. |
Daub Alderney was fined £7.1m, Casumo £5.85m. Videoslots is to pay £1m in lieu of a financial penalty. | |
A fourth firm, CZ Holdings, surrendered its licence to operate in the UK. | A fourth firm, CZ Holdings, surrendered its licence to operate in the UK. |
"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," said Neil McArthur, the chief executive of the Gambling Commission. | "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," said Neil McArthur, the chief executive of the Gambling Commission. |
"We expect operators to know their customers and to ask the right questions to make sure they meet their anti-money laundering and social responsibility obligations." | "We expect operators to know their customers and to ask the right questions to make sure they meet their anti-money laundering and social responsibility obligations." |
After a review which started in February, the Commission found that Videoslots had been making initial inquiries into the source of customer funds, but failed to continue to make checks. | After a review which started in February, the Commission found that Videoslots had been making initial inquiries into the source of customer funds, but failed to continue to make checks. |
In one case a Videoslots customer failed automated identity checks and instead provided a fraudulent driving licence, which was not detected. | In one case a Videoslots customer failed automated identity checks and instead provided a fraudulent driving licence, which was not detected. |
The customer registered multiple fraudulent credit cards, which were also not detected. Those cards were used to deposit and gamble with "large amounts". | The customer registered multiple fraudulent credit cards, which were also not detected. Those cards were used to deposit and gamble with "large amounts". |
The customer had deposited £17,405 by the time the company's systems flagged the account. The Commission said those deposits were "suspected to be the proceeds of crime". | The customer had deposited £17,405 by the time the company's systems flagged the account. The Commission said those deposits were "suspected to be the proceeds of crime". |
Videoslots accepted that it had weaknesses in its systems and had taken action to address the issues, the Commission said. | Videoslots accepted that it had weaknesses in its systems and had taken action to address the issues, the Commission said. |
The company's settlement payment will go towards research and the treatment of problem gambling. | The company's settlement payment will go towards research and the treatment of problem gambling. |
A review of Casumo's business, which began in January, found that the company had failed to check customers properly and monitor their activities. | A review of Casumo's business, which began in January, found that the company had failed to check customers properly and monitor their activities. |
Its investigation reviewed the accounts of three customers that showed potential signs of problem gambling, but did not trigger any action from Casumo. | Its investigation reviewed the accounts of three customers that showed potential signs of problem gambling, but did not trigger any action from Casumo. |
Since then the company has taken action to improve its procedures, the Commission said. | Since then the company has taken action to improve its procedures, the Commission said. |
Earlier this month, the Commission announced it was fining Daub Alderney £7.1m. | Earlier this month, the Commission announced it was fining Daub Alderney £7.1m. |
The company's monitoring of customers was also found to be inadequate, but it has since tightened its procedures. | The company's monitoring of customers was also found to be inadequate, but it has since tightened its procedures. |