Gamesys Fined by the UKGC Over Regulatory Failures

Article by : Erik Gibbs Jan 23, 2024

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Gamesys Operations Limited has found itself in hot water with the UK Gaming Commission, racking up astronomical administrative penalties amounting to £6 million (US$7.4 million) due to their failure to adhere to pertinent laws and regulations, states a recently published report.

Gamesys, a gaming company based in Gibraltar, manages a total of 16 domain names within the UK. A handful of renowned online gaming platforms under Gamesys’ operation encompass ballycasino.co.uk, doublebubblebingo.com, jackpotcity.com and megawayscasino.com.

In terms of social responsibility shortcomings, Gamesys faced challenges in effectively and promptly identifying at-risk gamblers and taking the corresponding measures to deal with these individuals.

Throughout the investigation period, several individuals were identified who deposited or lost significant amounts of money without the operator implementing appropriate interventions.

One notable case uncovered by the Commission involved a customer who deposited approximately $13,000 within three days of creating an account.

Additionally, another customer experienced losses amounting to approximately $10,000 over five weeks since opening an account, while a third suffered an even more substantial loss of approximately $24,000 within 34 days of registering.

The Commission’s review highlighted Gamesys’ failure to engage with certain customers who exhibited signs of being at-risk gamblers or facing gambling-related harms.

Specifically, the operator approached a customer who had incurred losses of nearly $12,000. However, instead of conducting a responsible gambling interaction, Gamesys offered new games and promotions, potentially encouraging further losses.

Another instance of social responsibility failure identified by the UKGC involved a customer who lost approximately $22,000 within a span of five months.

In addition to the aforementioned lapses in social responsibility, the Commission unveiled significant deficiencies in Gamesys’ Anti-Money Laundering (AML) practices.

Customers of the gambling operator managed to circumvent AML triggers, enabling them to deposit substantial sums without undergoing proper checks.

Examples of these instances included deposits totaling approximately $20,000 within 28 weeks, $20,000 over six months, and approximately $37,000 in five and a half months.

Moreover, the operator faced criticism for excessively relying on third-party information for customer due diligence. In certain cases, customers were able to deposit amounts exceeding $32,000 in three months, over $73,000 in six months, and exceeding $83,000 in six months.

Finally, the operator’s ‘Policy for the reinvestment of winnings’ was found to be insufficient in guaranteeing that deposited funds originated from legitimate sources.

Kay Roberts, Executive Director of Operations at the Gambling Commission, emphasized the regulator’s commitment to ensuring licensees adhere to safe and transparent gambling policies and procedures.

She further stated that whenever the Commission identifies shortcomings in these practices, gambling operators can anticipate significant regulatory action.