Online betting operator QuinnBet (Gibraltar) Limited has reached a regulatory settlement of £609,104 ($830,501) with the UK Gambling Commission due to significant deficiencies in its anti-money laundering (AML) practices and social responsibility measures.
This agreement, finalized on Thursday, concludes a comprehensive compliance review of QuinnBet's remote gambling license that began in March 2023 and is set to carry on until August 2025.
The settlement entails a disgorgement payment of £193,118 along with contributions towards the costs incurred during the Gambling Commission’s investigation. All funds will subsequently flow into the UK government's Consolidated Fund, which is typically allocated for public services, department operations, and servicing the national debt.
The investigation revealed numerous AML failures, specifically noting that QuinnBet did not have adequate controls to promptly identify and mitigate risks posed by high-spending customers. For instance, one customer who reported monthly earnings of around £2,000 managed to deposit and lose £9,000 within a mere four days. Another individual deposited nearly £120,000 and withdrew £111,000 in less than three months, yet QuinnBet failed to verify where these funds originated.
Additionally, the review highlighted issues with delays in the submission of Suspicious Activity Reports (SARs) and issues during a platform migration that allowed 194 customers to unintentionally exceed their deposit limits.
QuinnBet was found to have violated Licence Condition 12.1.1, which mandates effective AML policies, along with Social Responsibility Code Provisions (SRCP) 3.4.3 and 3.4.4 that pertain to the timely detection, response, and assessment of customer behavior that suggests potential harm.
In terms of social responsibility, the operator's methods for identifying and addressing gambling harm were rated as inadequate, relying too heavily on manual interventions and slow alert systems. Notably, one player made approximately 4,800 bets in a single day and 7,000 the next, without triggering any internal warnings. Another customer wagered over £215,000 in one day after a substantial win, but the activity wasn’t flagged until the following morning.
The Gambling Commission also observed that the manual system in place for applying lower deposit limits to customers aged 18-24 occasionally allowed some younger players to breach these limits significantly. One such case involved a player who deposited eight times their allowed monthly limit and lost the total in just one day.
John Pierce, the director of enforcement at the Gambling Commission, underscored the significance of this case, noting the severe implications of depending on systems that fail to quickly identify and respond to signs of harm and financial crime. He stated, “We expect operators to ensure their safeguards are effective in practice to protect consumers and keep crime out of gambling.”
Pierce also acknowledged that QuinnBet had recognized its failures and acted quickly to enhance its AML practices and harm identification protocols. The Commission noted QuinnBet’s cooperation during the investigation, including voluntarily reporting some shortcomings and promptly creating a remedial action plan, as mitigating factors.
Nevertheless, the past public statements of the Commission regarding similar issues at other operators were considered aggravating factors.
A recent crackdown on AML issues has been a priority for the Gambling Commission. Following the release of a report assessing money laundering and counter-terrorist financing vulnerabilities within the UK gambling sector, the Commission discovered that operator-side deficiencies continue to play a significant role in AML/CTF risks. The report identified widespread shortcomings in AML/CTF policies, inadequately trained staff, poorly defined AML thresholds, and insufficient monitoring of linked or duplicate accounts. This week, Holland Park Leisure Limited, an adult gaming center operator, faced penalties for failing to participate in the mandatory multi-operator self-exclusion scheme.
