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Videoslots Limited Fined £2 Million for Compliance Lapses
The UK Gambling Commission’s investigation into Videoslots Limited uncovered several instances of social responsibility failures by the company.
Breaches of Licensing Conditions
The investigation revealed specific breaches of Videoslots’ licensing conditions, indicating a disregard for regulatory requirements. Their inadequate implementation of AML measures resulted in significant failures, allowing potential money laundering activities to go unchecked.
Repeat Offender Status
Videoslots’ previous penalty and the subsequent fine reinforce the company’s repeated failure to address compliance issues, raising concerns about its commitment to responsible gambling practices.
In light of these findings, the UK Gambling Commission has taken decisive action to hold Videoslots accountable for its shortcomings, imposing a £2 million (€2.3 million) fine on the company.
Videoslots Limited operates three online gambling websites in the UK: videoslots.com, videoslots.co.uk, and mrvegas.com.
Notably, one of the most concerning social responsibility failures was Videoslots failure to conduct responsible gambling reviews promptly when customers displayed signs of problem gambling.
In addition, the company allowed a customer with a £60,000 (€70,100) income to lose an alarming £98,000 (€114,500) within a six-month period without any intervention or assessment of appropriateness.
The AML failures also highlighted Videoslots’ negligence in implementing risk-based processes effectively. This lax approach allowed a customer to deposit £112,225 (€131,120) without undergoing the necessary verification checks, and the same customer suffered substantial losses of £58,725 (€68,612) without any interventions taking place.
Videoslots’ failure to carry out customer due diligence in a timely manner further emphasized its non-compliance with internal procedures and industry standards.
Moreover, the company’s shortage of AML analysts resulted in an insufficient capacity to handle the expected workflow associated with AML procedures.
Given that this is the second time Videoslots has faced penalties from the UK Gambling Commission, the severity of the fine demonstrates the Commission’s commitment to ensuring compliance and responsible gambling within the industry.
With fines totaling over £53,767,828 (€62,827,214) in 2023 alone, the gambling industry as a whole has seen a sharp increase in penalties. According to research by USA-Casino.com, the total fines for 2022 amounted to €251,712,034 ($269,532,490), representing a staggering 443.9% surge compared to the previous year’s total of €44,753,969 ($48,642,992).
