Gamesys Fined £6m for Not Checking Customers' Spending

Gamesys Fined £6m for Not Checking Customers’ Spending

Time Stamp: February 7, 2024 10:36 AM
Source Node: 2473365

Dropped the ball

Online gambling operator Gamesys has been fined £6m ($7.6m) for welfare failings despite being awarded the highest safety standard.

The UK Gambling Commission fined the operator for violations between November 2021 and July 2022. While those breaches were occurring, though, GamCare, a UK charity that provides free support to those affected by gambling, awarded Gamesys an advanced level 3 safety certificate.

One of Gamesys’ violations included failing to interact with players who had lost tens of thousands of pounds. Customers could also avoid the operator’s anti-money laundering measures, spending a lot of money without first being checked.

one player deposited over £14,500 ($18,300) in 28 weeks

In one instance, one player deposited over £14,500 ($18,300) in 28 weeks. Another managed to deposit nearly £19,000 ($24,000) in over six months.

For Gamesys to receive the highest safety rating, GamCare requires a company to have “no significant weaknesses” and to have a “wide range of safer gambling measures” in place.

Charity criticism

Founded in 2001 by web developer Noel Hayden Gamesys is said to have failed to inform GamCare during the period of assessment.

According to the charity, it’s up to gambling operators to let them know if they are being investigated by the regulator.

“We take these matters very seriously,” a spokesperson for GamCare said.

Nick Harvey, head of external affairs at the charity Gambling with Lives, believes “it’s wrong that charities funded by the gambling industry are handing out awards to gambling companies.”

In his view, charities should be focused solely on reducing gambling-related harm.

New voices

The fine from the UK Gambling Commission comes at a time just a few months after the regulator welcomed seven new commissioners.

Not all, though, received the news positively.

“they are not fit for purpose”

Andrew Black, the joint-founder of UK sportsbook Betfair, voiced his concerns, claiming “they are not fit for purpose” due to their lack of experience in the gambling industry. 

In November, Black argued that they will have a “narrow perspective” and that “they will never develop the understanding they need to regulate our industry in an empathetic manner.”

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