Betway Handed Hefty Fine of £11.6m Over ‘VIP Perks’

Betway Handed Hefty Fine of £11.6m Over ‘VIP Perks’

The UK Gambling Commission (UKGCC) makes it crystal clear before an operator even attempts to secure a gambling license; play by the rules or you’ll be made an example of, but this is not exactly having the desired effect on some gambling operators – one, in particular, is Betway.

After uncovering a series of social responsibility and money laundering failings linked to numerous VIP players, the UKGB ordered Betway to pay £11.6m in fines.

A total of seven customers with a VIP status…

…came under the spotlight and in one instance, the operator failed to carry out source of funds (SOF) checks on the VIP customer who deposited over £8m and lost £4m during a four-year period! Another player managed to deposit £187K in two days and there were no effective social responsibility interactions made by Betway.

Caught in the VIP Act

In total, £5.8m was allowed to flow through the business and not a single penny came under the source of funds checks, which could reasonably be proceeds of crime. The majority of this sum will now be divested and returned to the victims. Inadequate management oversight and investigations into responsible personal management licence holders are still ongoing.

Richard Watson, Executive Director at the Gambling Commission, said: “The actions of Betway suggest there was little regard for the welfare of its VIP customers or the impact on those around them. As part of our ongoing programme of work to make gambling safer we are pushing the industry to make rapid progress on the areas that we consider will have the most significant impact to protect consumers. The treatment and handling of high value customers is a significant piece of that work and operators are in no doubt about the need to tackle the issue at speed.

We have set tight deadlines for when we expect to see progress and if we do not see the right results then we will have no choice but to take further action. This case highlights again why progress needs to be made.”

Not Tough Enough!

As a condition of their license to operate, gambling companies (including online bingo and online casinos) must perform checks on how heavy gamblers can afford to fund their bets.

The Labour MP Carolyn Harris wasn’t exactly thrilled with the news of yet another hefty fine being handed to an online gambling company: “Just how exploitative has a gambling company got to be before the Gambling Commission suspends their licence?

Betway’s fine for calculated and deliberate manipulation of VIP customers is paltry in comparison with the damage they will have caused to those caught in the web of VIP inducements. The industry is morally bankrupt, the Gambling Commission is complicit, and both should be concerned that their ability to operate in this way is fast coming to an end.”

Anthony Werkman, CEO at Betway said: “Betway takes full responsibility for the small number of historic cases which have led to this settlement. We have fully cooperated with the investigation and will take further proactive steps to ensure all recommendations and findings are implemented.”

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