Global online gambling and betting is predicted to surpass $172.23 billion by 2030. As the industry continues to grow, regulators will start taking an even closer look, raising the potential for huge fines. Just two years ago, online betting firm Betway was handed the biggest fine in UK gambling history—a record £11.6m ($14m)— for failing to fulfill obligations to prevent both money laundering and problem gambling. This presentation considers the most common mistakes in casino compliance, as well as some unexpected issues that firms regularly face, with real-world examples.

1. Casino
Compliance:
6 Common Mistakes

2. As the industry continues to grow, regulators will
start taking an even closer look, raising the potential
for huge fines.
Just two years ago, online betting firm Betway was
handed the biggest fine in UK gambling history —
a record $14m — for failing to fulfill obligations
to prevent both money laundering and problem
gambling.
Forecast
Global online gambling and betting
is predicted to surpass
$172.23 billion by 2030

3. How can a business avoid painful fines and
reputational risks brought by non-compliance
with casino regulations?
This presentation considers
the most common mistakes in
casino compliance, as well as
some unexpected issues that
firms regularly face, with
real-world examples.

4. Videoslots failed to perform an accurate
identity check on a client, who managed
to pass verification with a fraudulent driving
license, resulting in a $1.2m fine
for the company.
Casinos often neglect identity
checks by failing to adequately
automate the process
Mistake #1: improper identity checks

5. Inadequate proof of source of funds (PoSoF)
checks can be a serious violation of AML
requirements. Casinos often allow a customer
to gamble while being led into the dark about
the source of their money, which could easily
have been obtained illegally.
Mistake #2: failure to verify proof
of source of funds
This was the reason for
the fines of the two companies:
● Casumo fined $7.1m
● Betfred fined $390k

6. Mistake #3: poor client monitoring
Once a client has been onboarded and verified,
some casinos lower their guard. Yet, failing to
scrutinize sources of funds and transactions on
an ongoing basis is another serious AML
violation.
Daub Alderney was fined $8.6m for
failing to conduct appropriate ongoing
monitoring of a business relationship

7. Mistake #4: failure to conduct
assessment of affordability
As the Gambling Commission advises,
operators should identify clients
experiencing or at risk of harm and
intervene to earliest opportunity.
Open source data can help operators
assess affordability for their UK customer
base and improve risk assessment.
Assessment of affordability is now part of the
customer interaction guidance of provision
3.4.3 of the UK Gambling Commission, which
came into effect on September 12, 2022

8. Mistake #4: failure to conduct
assessment of affordability
$48.5k
Online casino company
888 failed to carry out
proper financial checks
until their customers
had deposited $48.5k.
$44.9k
As a result,
one vulnerable client
lost $44.9k in just six
weeks during 2020.
$11.4m
A $11.4m fine followed,
which is the third
highest in the history
of British gambling
regulation.

9. The most high-profile example of this is online betting
firm Betway, which was handed the biggest fine in UK
gambling history—a record $14m. Betway was proven
“inadequate” in its dealings with several clients,
failing to fulfill their obligations to prevent both
money laundering and problem gambling to allow
$7m to flow through the business, some of which was
stolen money.
Mistake #5: loose risk assessment
Some casinos neglect proper risk
assessment, failing to spot clients with a
higher risk of money laundering and
skipping over requests for proof of source
of funds
$14m
the biggest fine in UK gambling history

10. Mistake #6: undetected problem gambling
When gambling becomes more than just
a hobby, things can go south. Customers
can spend more than their income, selling
property or even stealing money from
relatives to fund their next bet.
And if casinos don’t monitor for signs of
such behavior, they’ll be on the hook for it.

11. Mistake #6: undetected problem gambling
There are quite a few casinos
who’ve failed to address addiction
among their players, including:
William Hill fined $7.5m
Paddy Power Betfair fined $7.5m
Sky Bet fined $1.2m
Caesars Entertainment fined $15.7m
32Red fined $2.4m

12. Mistake #6: undetected problem gambling
In 2017, a 24-year old English teacher committed
suicide after years of severe gambling problems.
His parents claim there is outrageously little public
information raising awareness of the consequences
of gambling addiction.
Casinos can help by comprehensively informing
gamers about the risks and closely monitoring
their behavior for troubling signs
But is a fine enough to compensate
for a human life?

13. Find out how to avoid these
6 common Mistakes in
a casino compliance
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