The operators of Betfred, Done Brothers (Cash Betting) Limited, have been issued an £825,000 fine by the Gambling Commission in the UK for social responsibility and Anti-Money Laundering failures. The operator, which also runs a large number of in-person shops, will now have to undergo a third-party audit to ensure future compliance in the Anti-Money Laundering and Social Responsibility categories.
Anti-Money Laundering Failures
There are quite a few examples of how badly they failed. Here is the list of Anti-Money Laundering failures:
- Betfred was unable to effectively identify and manage money laundering risks associated with customers using its B3 gaming machines. Whilst the licensee utilised machine alerts and daily reports, practices in place at the time of the assessment in 2024 meant the operator was unable to assess overall customer spend and the associated money laundering and terrorist financing risks.
- Betfred also did not have an effective policy in place to identify and handle any customers who may be subject to financial sanctions. Thresholds at which the operator made enquiries regarding customers’ source of income were not appropriately risk-based, with thresholds set at £15,000 losses and £125,000 stakes in 365 days.
Social Responsibility Failings
There are also some examples of their Social Responsibility failings:
- Betfred could not adequately identify spend and any associated financial indicators of gambling harm for customers using B3 gaming machines.
- Customer interactions did not always take place following the identification of risk indicators, or when they did, interactions were not conducted in a way which minimised the risk of gambling-related harm.
- The quality of interactions, in particular understanding the impact of the interaction, did not meet the standards required.
Repeat Regulatory Action
This is the second time the operators of Betfred have faced regulatory action. In 2023, the operator paid a staggering £3,250,000 regulatory settlement for other social responsibility and Anti-Money Laundering failures.