UK Gambling Commission Conducted Just Eight AML Inspections in 2023–2024

The UK Gambling Commission (GC) carried out only eight on-site anti-money laundering (AML) inspections during its 2023–2024 operating year, according to a newly released report. This figure remains consistent with previous years, as the regulator conducted nine inspections in both 2022–2023 and 2021–2022.

The commission’s budget for AML oversight has also seen little change over the years. The latest AML Supervision Report from HM Revenue and Customs (HMRC) shows that the GC allocated £227,700 to AML supervision in 2023–2024, compared to £194,000 in 2022–2023 and £213,000 in 2021–2022.

In addition to the low number of inspections, the number and value of fines issued by the Gambling Commission have also declined significantly. The regulator imposed just seven fines totaling £9 million in 2023–2024. This marks a steep drop from the 19 fines issued in 2022–2023, which amounted to £53.5 million, and the 10 fines imposed in 2021–2022, which totaled £23.5 million.

During the 2023–2024 period, the Gambling Commission supervised 247 casinos, the majority of which were remote operators. HMRC noted that a significant portion of casino operators have ownership structures based outside of the UK.

“These jurisdictions vary, but the Gambling Commission frequently sees holding companies, trusts, and beneficial owners based in the British Virgin Islands, Cyprus, Malta, Sweden, Israel, and the United States,” HMRC stated.

The report also highlighted the limited staffing available for AML and counter-terrorist financing (CTF) supervision within the GC. While the commission had only five full-time employees dedicated to AML/CTF work, 159 staff members across licensing, enforcement, compliance, intelligence, legal, and forensic accounting teams were involved in supporting AML-related tasks.

“The GC spent an estimated £227,700 on AML supervision, with the caveat that as AML/CTF supervision is not the sole focus for the majority of the teams, it is difficult to provide an accurate estimate of expenditure,” HMRC said.

Despite conducting only a small number of inspections, the Gambling Commission has recently issued warnings about weak AML controls within the betting sector. Last month, the regulator pointed out that many operators fail to properly monitor customer data and financial transactions.

John Pierce, the GC’s enforcement director, criticized widespread AML failures across multiple firms and condemned the industry’s reliance on superficial compliance methods. “Tick-box” compliance approaches, he warned, were inadequate in addressing money laundering risks.

Meanwhile, the Gambling Commission reported a significant rise in gambling revenues. Online gross gambling yield in Great Britain surged by 21% year-on-year in the fourth quarter of 2024, reaching £1.54 billion ($1.92 billion). Total online bets and spins also increased by 8% to 25.9 billion during the same period. However, the number of average monthly active player accounts declined by 3%, prompting concerns over potential money laundering vulnerabilities.

At the time of publication, the Gambling Commission had not responded to a request for comment.

By fLEXI tEAM