UK licence holder NetBet Enterprises Ltd has paid £650,000 to the UK Gambling Commission (UKGC) after an investigation into anti-money laundering (AML) failures.

A statement from the regulator stated that the company, operator of online gambling provider NetBet UK, agreed to a settlement with the Commission after an investigation revealed social responsibility breaches as well as AML shortcomings as well.

List of AML failures

As listed in the statements, the AML failures included a lack of adequate customer financial controls, which led to a number of customers wagering “disproportionally to their net income”.

This then led to examples where a customer’s significant gambling activity would constitute harmful behaviour, but where the operator also failed to intervene – essentially marking these players as “low-risk”.

NetBet’s AML and anti-terrorist financing assessments also failed to recognise key factors when assessing gambling spend, such as “the management of third-party business relationships” and “controls of third-country nationals living in the UK”, the UKGC added.

List of social responsibility failures

On the social responsibility side, the investigation found that NetBet failed to recognise general markers of harm, such as overnight play and escalating deposits, in a timely manner – but only after a manual review was conducted.

Following on from the earlier point about cascading gambling activity, the UKGC assessed that the operator lacked “effective customer interaction systems” that minimise the risk for customers.

Lastly, it was also found that NetBet had submitted “inaccurate information” when filing its regulatory return forms. SBC News has reached out to NetBet for a comment.

UKGC extra vigilant as 2025 nears end

As per the settlement, the UKGC reported that the £650,000 paid by NetBet will be used to fund social responsibility causes.

John Pierce, UKGC Director of Enforcement, said: “This case highlights the serious consequences of failing to meet anti-money laundering and social responsibility obligations. 

“We expect all operators to take note and ensure their systems are not only well-designed but are working effectively to protect consumers and to keep crime out of gambling.

“The operator was instructed to take immediate action and make significant improvements to its systems and controls. This included strengthening their risk assessments, improving how they identify and respond to indicators of harm, and ensuring the accuracy of the data they report to us.

“Alongside the £650,000 financial penalty, the operator is also required to commission an independent audit of its policies, procedures, and controls to ensure the necessary improvements they have implemented are properly embedded and remain effective in practice. 

“Our focus is on ensuring operators meet the standards we expect, and where they fall short, we will intervene.”

In recent weeks, the UKGC has been ramping up its enforcement of AML regulations, already leading up to several high-profile cases.

Earlier in October, Platinum Gaming, which operates FDJ United-owned Unibet in the UK, was issued a whopping £10m penalty over similar social responsibility and AML failures.

The AML clampdown is not limited to just iGaming, however, with the Victoria Gate Casino in Leeds getting its licence suspended whilst the regulator undertakes a review of its AML standards.

All of the above goes to show that the UKGC is not messing around when it comes to financial compliance and regulatory penalties – something that both iGaming and land-based operators should take at heart given the expected tax increases in next year’s Budget.