NetBet settles with UKGC for £650,000 after regulatory failures uncovered

• UKGC settles £650,000, citing AML and social responsibility failures as per the review of the operator
• The operator has also agreed to conduct an independent audit that will assess its controls, procedures, and policies
• The UKGC remains committed to maintaining a responsible industry where operators focus on meeting regulatory standards

The UK Gambling Commission has issued its latest enforcement action against a locally licensed company in the face of NetBet Enterprise Limited.

The watchdog and operator have settled for the total of £650,000, which will go to socially responsible causes, after the website run by the licensee holder, netbet.co.uk, was found to be in various breaches.

UKGC orders audit of business following financial settlement

Besides settling with the regulator, NetBet will also have to undergo an independent third-party audit of its policies, controls, and procedures, to ensure that it aligns with the license prerequisites and take remedial action where and if necessary.

The regulator outlined the issues identified in its investigation, citing both social responsibility and anti-money laundering failures.

Concerning the first, the regulator argued that NetBet had failed to implement "effective customer interaction systems and processes in a way which minimised the risk of customers experiencing harms associated with gambling."

The regulator also said that NetBet had failed to take into timely consideration clear indicators of harm, including overnight play, velocity of deposits, exhausting limits, and escalating gameplay.

Commenting on the enforcement action, UKGC Director of Enforcement, John Piere, said:

"This case highlights the serious consequences of failing to meet anti-money laundering and social responsibility obligations. We expect all operators to take note and ensure their systems are not only well-designed but are working effectively to protect consumers and to keep crime out of gambling."

In terms of anti-money laundering failures, the UKGC enumerated a number of instances where the operator fell short of what was expected from it.

The licensee was over-reliant on financial triggers, the regulator said, and there were instances when significant gambling activity was taking place, including suspicious behavior, which the operator failed to register as suspicious.

Regulator determined to uphold market rules and safeguards

There were also omissions in key risk assessments concerning AML and CTF. "The operator was instructed to take immediate action and make significant improvements to its systems and controls. This included strengthening their risk assessments, improving how they identify and respond to indicators of harm, and ensuring the accuracy of the data they report to us," Pierce added.

The UKGC has been issuing a number of penalties over the past weeks, with the regulator slapping a £686,070 fine on Corbett Bookmakers Limitedin March.

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