Compliance Updates
UKGC: Systemic failings at Caesars Entertainment UK leads to the departure of three senior managers and sanctions of £13m
The UK Gambling Commission has announced that Caesars Entertainment UK Limited is to pay £13m and must implement a series of improvements following a catalogue of social responsibility, money laundering and customer interaction failures including those involving ‘VIPs’.
As a result of this investigation three senior managers at the company surrendered their personal licences.
The Regulator’s investigations into Personal Management Licence holders are ongoing.
The land-based gambling business, which operates 11 casinos across Britain, will pay the money following an investigation by the Commission which found serious systematic failings in the way the company took decisions about VIP customers between January 2016 and December 2018.
Social responsibility failings included:
- Inadequate interaction with a customer who was known to have previously self-excluded and lost £240,000 over a 13-month period
- Inadequate interaction with a customer who lost £323,000 in a 12-month period and had displayed signs of problem gambling which included 30 sessions exceeding five hours
- A customer allowed to lose £18,000 in a year despite identifying herself as a self-employed nanny and informing staff that her savings had been spent, and that she was borrowing money from family and using an overdraft facility to fund gambling activities
- Inadequate interaction with, and source of funds checks on, a customer who identified as a retired postman and lost £15,000 in 44 days.
Money laundering failings included:
- The operator not carrying out adequate source of funds checks on a customer who was allowed to drop around £3.5 million and lose £1.6 million over a period of three months.
- The operator not obtaining adequate evidence of source of funds for a politically exposed person (PEP) who lost £795,000 during a 13-month period
- The operator not carrying out enhanced customer due diligence (ECDD) checks on a consumer who lost £240,000 over a 13-month period
- The operator not carrying out adequate source of funds checks on a customer who identified as a waitress and was allowed to buy-in £87,000 and lose £15,000 during a 12-month period.
Neil McArthur, Chief Executive of the Gambling Commission, said: “We have published this case at this time because it’s vitally important that the lessons are factored into the work the industry is currently doing to address poor practices of VIP management in which we must see rapid progress made.
“The failings in this case are extremely serious. A culture of putting customer safety at the heart of business decisions should be set from the very top of every company and Caesars failed to do this. We will now continue to investigate the individual licence holders involved with the decisions taken in this case.
“In recent times the online sector has received the greatest scrutiny around VIP practices but VIP practices are found right across the industry and our tough approach to compliance and enforcement will continue, whether a business is on the high street or online.
“We are absolutely clear about our expectations of operators – whatever type of gambling they offer they must know their customers. They must interact with them and check what they can afford to gamble with – stepping in when they see signs of harm. Consumer safety is non-negotiable.”
All £13m from this case will be directed towards delivering the National Strategy to Reduce Gambling Harms.
The action against Caesars is the latest in a line of tough regulatory action by the Commission.
Since January the Commission has suspended the operating licences of Stakers Limited, Addison Global Limited, and Multi Media International Limited.
So far this year regulatory action has led to the industry paying £27 million in penalty packages. This includes £11.6 million for Betway and £3 million for Mr Green.
Read public statement about Caesars Entertainment here.
Source: UKGC
Compliance Updates
UKGC Appoints Two New Members to the Advisory Board for Safer Gambling
The UK Gambling Commission has appointed two new members to the Advisory Board for Safer Gambling (ABSG), Dr Virve Marionneau and Dr Spencer Murch.
Anna van der Gaag, Chair of ABSG, said: “We are very fortunate to have Virve and Spencer as our newest members.
“They are highly respected academics, both with a strong record of achievement in the field of gambling studies, and together they will expand the national and international research expertise we offer to the Commission. Gambling is a global business and the regulatory challenges faced in different jurisdictions have much in common. I am delighted to be welcoming them and have no doubt they will bring valuable new insights to an ever-expanding range of topics which inform policy and practice in gambling regulation.”
Dr Marionneau is a sociologist and the director of the Centre for Research on Addiction, Control and Governance at the University of Helsinki, Finland.
Her research focuses on a wide range of gambling-related topics, including regulations and policy evaluations, digital gambling environments, gambling industry practices and qualitative investigation of gambling experiences and harms.
She said: “I am honoured to join the ABSG, especially at a time when increasing international and cross-sector collaboration is needed to regulate and control gambling. I am thrilled to be a part of this impressive team of experts, and I look forward to advising particularly on regulatory practices and research from other jurisdictions.”
Dr Murch is a cognitive psychologist and AGRI Postdoctoral Fellow at the University of Calgary, Canada. His work seeks to:
• understand the cognitive, behavioural and psychophysiological profiles of addictive digital product use
• explore new opportunities for improving human health by using emerging Artificial Intelligence (AI) technologies to detect, intervene and ultimately prevent gambling-related problems.
He said: “I am eager to contribute to such a talented team as the ABSG. As AI technologies and digital gambling opportunities continue to evolve, it is more important than ever to understand clearly the threats posed to human health in the United Kingdom and around the world. The mandate of this group is important, timely, and represents an opportunity to transform research insights into working harm prevention policies.”
Compliance Updates
Playnetic reinforces European foothold following regulatory approval from the Malta Gaming Authority
Playnetic, the new B2B iGaming provider, has received regulatory approval from the Malta Gaming Authority (MGA).
The news sees the innovative gaming content provider recognised by the MGA, allowing Playnetic to provide its captivating portfolio of games to Maltese licensed operators. This strategic move allows the company to secure partnerships in one of the most prominent online gambling markets in the world, further solidifying its global footprint.
The major milestone comes fresh from a successful exhibition stand at the SBC Summit Lisbon, where the company launched a range of new game titles, including Patrick vs Joker and Medusa’s Fury. Both titles were showcased as the feature games at the show, with a range of activities including daily tournaments and prizes as well as the signature ‘Playnetic Cocktails’.
In the last few months, the company has secured licences in both Sweden and Romania, with recognition in Malta further expanding Playnetic’s reach. This success allows the company to continue its ambitious expansion plans in regulated markets across the globe.
Dan Phillips, Playnetic CEO said: “We’re delighted to have gained our recognition notice in Malta, where there continues to be incredible market potential, and we’re excited to have gained recognition in yet another country so quickly.
“This achievement sees us push forward with our goal of becoming a trusted and reliable partner, focussed on offering quality innovative games to operators on time, every time. The recognition notice also demonstrates Playnetic’s commitment to upholding the highest standards of regulatory compliance.
“This is just the beginning. Playnetic is actively pursuing additional licenses, demonstrating our unwavering commitment to global expansion. Securing this approval from the Malta Gaming Authority fresh off the back of the exciting discussions at SBC Summit Lisbon, underscores our commitment to expanding our reach and offering our partners even more opportunities.”
Australia
AUSTRAC CEO Brendan Thomas Announced as Speaker for Regulating the Game 2025 Sydney
The organisers of Regulating the Game 2025 have announced that Mr Brendan Thomas, chief executive officer of AUSTRAC, will be a featured speaker at the 2025 edition of the conference, taking place at the Sofitel Sydney Darling Harbour from 10-13 March 2025.
Mr Thomas, who began his 5-year term as AUSTRAC CEO in January 2024, brings extensive experience in leading public services and delivering reforms, particularly within NSW’s criminal and civil justice systems.
As the head of Australia’s financial intelligence unit and AML/CTF regulator, he oversees AUSTRAC’s efforts to safeguard the financial sector from criminal exploitation while providing critical intelligence to support national security, law enforcement and regulatory partners.
AUSTRAC has intensified its focus on the gambling sector, following a series of high-profile enforcement actions against major casino operators and several corporate bookmakers. Reports in the Financial Review have also highlighted AUSTRAC’s increased scrutiny of pubs and clubs in the wake of the 2022 NSW Crime Commission’s Project Islington, which, while finding no widespread laundering of criminal proceeds, revealed significant amounts of illicit funds being gambled in these venues.
Paul Newson, principal at Vanguard Overwatch and organiser of Regulating the Game, said: “Having Brendan Thomas speak at the conference signals AUSTRAC’s ongoing commitment to the gambling sector. His participation emphasises the importance of making sure the industry is alert to money laundering risks and continually strengthened against financial crime.”
Mr Thomas’ presentation is expected to offer invaluable insights for regulators, industry leaders and key stakeholders, especially as AUSTRAC’s role in combatting financial crime is set to expand further with the anticipated passing of the Government’s Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024. This legislation aims to extend the AML/CTF regime to high-risk professions, such as real estate agents, lawyers, accountants and dealers in precious metals and stones, marking a pivotal shift in Australia’s regulatory landscape.
Regulating the Game 2025 will be held in Sydney, Australia, from March 10 to 13. The event will once again serve as a platform for thought leaders, innovators and regulators to come together and explore the most pressing issues in the gambling sector.
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