Lindar Media Fined £690,947 for Failures

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The UK Gambling Commission (UKGC) has announced that Lindar Media Limited, the company behind the popular online casino MrQ, will pay a £690,947 regulatory settlement. The penalty, announced on 20 September 2023, follows an investigation that uncovered significant failings in the operator's anti-money laundering (AML) and social responsibility procedures.

The regulatory review, which followed a compliance assessment in September 2022, examined the period between July 2021 and September 2022. It found multiple breaches of the Licence Conditions and Codes of Practice (LCCP).

Widespread Failings Identified

The UKGC's investigation revealed weaknesses across several key areas of Lindar Media's operations.

Anti-Money Laundering (AML) Breaches: Investigators found that Lindar Media's AML policies were inadequate and not implemented effectively. Key failings included:

• An inappropriate risk assessment that failed to consider factors such as customers from high-risk countries or disproportionate spending.
• Automatically assigning all new customers a 'low' money laundering risk rating without sufficient information.
• Setting financial triggers at a level that allowed some customers to deposit and lose up to £10,000 in a short period before any checks were initiated.
• Policies and procedures were not reviewed in a timely manner to keep up with UKGC guidelines.

Social Responsibility and Player Protection Failures: Lindar Media was found to have breached social responsibility codes intended to protect vulnerable customers. The Commission noted:

• The operator's safer gambling triggers were not always effective, particularly for new customers depositing large amounts at high speed.
• A lack of a real-time process to identify and interact with customers at the earliest signs of gambling-related harm.
• Some customers were able to lose significant sums, in some cases over £10,000, before any meaningful interaction or intervention occurred.

Advertising and Administrative Lapses: The investigation also uncovered other significant compliance failures:

• Irresponsible Advertising: The operator was found to have used advertising likely to be of particular appeal to children. This included a Reddit advertisement featuring cartoon Spiderman figures and the use of cartoon imagery on the MrQ.com website for games like 'Piggy Bank Bills' and 'The Doghouse Megaways'.
• Reporting Failures: Lindar Media failed to notify the Commission within the required five working days when its Head of Regulatory Compliance ceased to hold the position. The individual also held other key management roles without the Commission's required approval.
• Charitable Contribution: The company failed to make its required annual financial contribution to an organisation for research, prevention, and treatment of gambling harm for the year ending December 2021.

The Regulatory Settlement

The £690,947 payment is part of a regulatory settlement in lieu of a formal financial penalty. This figure includes a divestment of £50,947, representing money gained as a result of the failings. The total sum will be directed towards socially responsible purposes.

In its decision, the UKGC noted several aggravating factors, including the serious nature of the breaches and their similarity to previous cases where lessons should have been learned. However, the Commission also acknowledged mitigating factors, stating that Lindar Media had taken immediate steps to rectify the issues, cooperated fully with the investigation, and made an early settlement proposal.

For consumers, this enforcement action underscores the UKGC's focus on holding operators accountable for protecting players and preventing gambling from being associated with crime. While the failings were serious, the Commission has confirmed that the operator has since taken remedial action to improve its compliance and control frameworks.