The UK Gambling Commission has fined online gambling operator Smarkets £630,000 (€743,243) following an investigation that uncovered anti-money laundering (AML) and social responsibility failures.
According to the Gambling Commission’s statement, Smarkets allowed customers to gamble without providing sufficient proof relating to source of funds. The company also failed to identify customers who were potentially susceptible to the harms of gambling.
The Commission has issued a formal warning to the company which must also undergo an audit to ensure that the correct AML and social responsibility protocols are in place and are being followed by Smarkets staff.
The investigation revealed that one customer was allowed to deposit £395,000 (€466,036) over a four month period without providing any source of funds details. Meanwhile another customer transferred large sums of cash between bank accounts and user accounts without any checks being implemented.
Speaking of the investigation’s findings, Sarah Gardner, Commission Deputy CEO, said:
“This case was identified through compliance checks and once again highlights how we will take action against gambling operators who fail their customers.
“Our investigation into Smarkets unearthed a variety of failures where customers were put at risk of gambling harm.
“It was obvious that poor systems and processes were in place which contributed to these breaches, driven by the company’s failure to effectively implement its policies and controls.”
Earlier this month online operator LeoVegas was fined £1.32 million for social responsibility and anti-money laundering failings.
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Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.