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Bet365 will pay £582,120 for anti-money laundering and social responsibility failures as part of a regulatory settlement with the Gambling Commission (UKGC).

Divided among both its sports betting and iGaming operations, the regulatory settlement will be directed entirely towards socially responsible causes.

The Commission said the failings were discovered during a March 2022 compliance assessment.

“The policy and procedural failings may not have been as severe as those at other gambling businesses in recent years but they were failings nonetheless,” said executive director of operations Kay Roberts (pictured).

“We expect high standards from operators in terms of keeping gambling safe, fair and crime-free, and will always take action to correct any failings.

“This operator is very aware that a repeat of these failings will result is escalating regulatory action.”

This enforcement represents the first regulatory action ever taken against bet365 by the UK’s gambling regulator.

Bet365 social responsibility failings  

The UKGC criticised the operator for social responsibility failings, as it breached licence provisions requiring operators to interact with customers in a way which minimises the risk of users experiencing gambling harms.

The violations took place between October 2021 and September 2022.

Interactions with customers were often not tailored to a particular customer journey or spectrum of harm so the interactions were not meaningful, said the Commission.

The regulator also said bet365’s Early Risk Detection System was not effective in understanding the impact of interactions on player behaviour and indicating whether further action was needed.

Finally, the business’ approach to evaluation meant it did not know whether a customer had read and understood information or advice sent during the interactions.

Anti-money laundering licence breaches

The Gambling Commission said bet365 breached two licence conditions relating to anti-money laundering and counter-terrorist financing (AML/CTF).

Specific failings included enhanced customer due diligence and know your customer (KYC) triggers that were not capable of managing ML risk.

Bet365 also failed to apply financial sanctions checks on new customers prior to their first deposits, the regulator said.

Other failings included not carrying out independent verification checks, an over-reliance on customer self-verification, and the company’s procedure document not containing enough detail on who should be categorised “at risk” and “not at risk” for customer profiling.  

The regulatory settlement is the first enforcement action launched by the Commission since January’s £6m fine for Bally’s-owned Gamesys.

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