Gambling Commission Takes Strong Action Against Betfred

The UK Gambling Commission is actively enforcing gambling regulations by imposing hefty fines on operators breaching legal standards. A recent development includes 888 Holdings announcing that its license is currently being scrutinized by the Commission.

UK Casino Betfred is the latest to feel the regulatory pressure, facing a £3.25 million fine due to inadequacies in social responsibility and anti-money laundering practices.

Investigations indicate Betfred (Done Bros (Cash Betting) Ltd) failed to adhere to permit conditions from January 2021 to December 2022. This company runs 1,750 retail outlets and a prominent online betting platform.

The UKGC inquiry brought to light three major failures in social responsibility, highlighting that Betfred:

• Lacked robust client protection measures
• Failed to monitor high-speed spending patterns
• Neglected to track how long clients were playing

According to the authorities, Betfred risked clients' wellbeing by not upholding responsible gambling measures, putting some in jeopardy of major financial losses. They also assumed profitable clients were not at risk. A notable incident involved a customer gambling £517,499 without any intervention.

UKGC findings indicated Betfred didn't keep proper records on analyzing customer interactions, reducing the success of these engagements.

Simultaneously, poor documentation practices were identified as a lapse in anti-money laundering efforts. UKGC highlighted insufficient Know Your Customer (KYC) and Source of Funds (SoF) checks and excessive financial limits. It noted the company's over-reliance on open-source data without verifying customer funding sources.

Reflecting on the penalty, Kay Roberts of the Gambling Commission noted, “While online gambling gains public attention, this case underscores the necessity for elevated standards across the industry. Gambling should remain an enjoyable leisure choice, but it's crucial all operators, online or offline, have robust protections against potential harm or crime.”

The £3.25 million penalty for Betfred will be directed toward funding social responsibility programs. This action follows shortly after Star Racing Limited, owner of Star Sports, was fined £594,000 for similar violations.

Betfred now joins the ranks of Entain and William Hill, notable UK gambling firms recently scrutinized by the Gambling Commission. The penalties against William Hill and Entain set records at £19.2 million and £17 million, respectively.