Videoslots Fined £2 Million for AML & Safety Failures
Operator penalised for significant anti-money laundering and social responsibility failings, marking its second major regulatory action.
Online gambling operator Videoslots Limited has been ordered to pay a £2 million penalty by the UK Gambling Commission for serious anti-money laundering and social responsibility failures. The investigation found the company allowed high-risk customers to gamble significant sums without effective checks or interventions.
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The UK Gambling Commission (UKGC) has ordered Videoslots Limited to pay a £2 million regulatory settlement after an investigation uncovered significant failings in its anti-money laundering (AML) and social responsibility controls. The public statement, released on 15 June 2023, details systemic weaknesses that occurred between October 2019 and February 2022.
Systemic Failures in Player Protection
The regulatory review, which followed two separate compliance assessments, found that Videoslots had breached multiple conditions of its licence. The failings fell into two main categories:
Anti-Money Laundering (AML) Breaches:
The Commission found that Videoslots breached licence condition 12.1.1 by failing to effectively implement its own AML policies. The investigation revealed that the company had insufficient AML analysts to manage its workload, leading to significant delays in conducting required checks. This meant that high-risk customers were not reviewed in a timely manner.
In one case cited by the UKGC, a customer was allowed to deposit £112,225 despite triggering multiple AML alerts. The operator failed to conduct timely reviews or request source of funds information as required by its own procedures.
Social Responsibility and Safer Gambling Failures:
Videoslots also failed to comply with Social Responsibility Code Provision (SRCP) 3.4.1, which requires operators to interact with customers in a way that minimises the risk of gambling harm.
The investigation found that the operator:
- Failed to identify at-risk players: Reviews of customers displaying risky behaviour were not undertaken early enough or effectively.
- Did not consider affordability: One customer with a declared income of up to £80,000 and savings of up to £50,000 was allowed to deposit and lose £98,000 within six months—more than their declared means.
- Conducted ineffective interactions: Another customer lost £58,725 in under two months while exhibiting numerous markers of harm, such as gambling for long periods and in the early hours. The UKGC noted that the operator's interactions were not effective in minimising harm as the customer's behaviour did not change.
- Underused safety tools: The operator did not make sufficient use of restrictive measures like forced deposit limits or temporary play blocks for at-risk players.
A Repeat Offence for Videoslots
The UKGC noted as an aggravating factor that this is the second time Videoslots Limited has been subject to a regulatory review for similar failings. A previous investigation resulted in the operator paying a £1 million settlement.
While the Commission acknowledged that Videoslots cooperated with the investigation and has since taken steps to rectify the breaches, it highlighted that the failures were similar to previous cases across the industry and had continued for a prolonged period.
What This Means for Players
The £2 million regulatory settlement package consists of a £1.5 million payment directed towards socially responsible causes and a divestment of £494,842. The operator will also pay £11,308 towards the Commission's investigation costs.
The case highlights a failure by the operator to implement its own stated policies for protecting vulnerable customers and preventing its platform from being used for money laundering. The UKGC has urged all gambling operators to learn from the failings identified in this investigation to ensure their own AML and safer gambling controls are robust and, most importantly, effectively implemented.