Betfred Fined £3.25M for AML and Social Responsibility Failures by UK Gambling Commission

British gambling operator Betfred, also known as Done Bros (Cash Betting) Limited, has been hit with a hefty fine of £3.25 million by the UK Gambling Commission. The penalty comes as a result of significant anti-money laundering (AML) and social responsibility failures identified between January 2021 and December 2022.

Betfred operates 1,750 high street betting shops, as well as a website and an app, making it a prominent player in the UK gambling industry. However, the Gambling Commission's investigation uncovered several shortcomings in the company's AML and social responsibility measures.

The investigation found that Betfred had inadequate controls in place to protect new customers and monitor "high velocity spend" and duration of play effectively. The firm's AML failures included poor record-keeping, setting financial alert thresholds too high, and failing to consistently obtain appropriate 'know your customer' identification and Source of Funds (SoF) documentation from customers.

Furthermore, Betfred was found to have placed an undue reliance on open-source information, neglecting to take further steps to corroborate customers' SoF information when necessary. These AML failures persisted over various periods between January 2021 and December 2022.

Kay Roberts, the executive director of operations at the Gambling Commission, emphasized the importance of maintaining high standards across the entire gambling industry, whether online or offline. She stated that while gambling is a legitimate leisure activity for millions of people, operators must implement effective safeguards to prevent harm or crime.

In addition to the AML breaches, Betfred's social responsibility failures also contributed to the fine. The company was found to have insufficient controls in place to protect new customers and monitor high velocity spend and duration of play, exposing customers to the risk of substantial losses without adequate safer gambling interactions.

The firm made the mistake of assuming that customers who were winning were not at risk of harm, neglecting to conduct any safer gambling interactions on one customer who staked a staggering £517,499 over a two-month period. Betfred was also found to have lacked evidence of evaluating the effectiveness of individual customer interactions and maintained poor record-keeping, which limited the effectiveness of future interactions.

All £3.25 million of the fine will be allocated to socially responsible causes. The penalty serves as a reminder to all gambling operators, whether online or offline, of the need to maintain strict compliance with AML regulations and implement robust social responsibility measures to safeguard customers and prevent harmful consequences associated with gambling.