The UK Gambling Commission levied a £3.25 million ($4.14 million) fine against Done Brothers (Cash Betting) Ltd, operator of Betfred betting shops. During its investigation, UK regulators found a number of lapses relating to social responsibility and anti-money laundering controls.
Legal sports betting has changed a lot since the UK Gambling Act of 2005. The growth of gambling on UK betting sites is just one reason why the Gambling Commission released a new white paper in April. But regulators aren’t ignoring retail gambling, as evidenced by their latest investigation.
According to the Commission, during 2021 and 2022, Betfred did not adequately protect against money laundering, failing to secure required Source of Funds (SoF) documentation.
The Commission also identified lax controls regarding player safety. The Commission found that Betfred lacked consistent risk prevention and detection processes. In one case, a bettor was allowed to stake over £500,000 in a two-month period with little-to-no company interaction to determine the safety and suitability of the wagers.
Betfred said it had already taken action to remedy the “identified weaknesses.” The company added that it “remains committed to ensuring that a safer gambling ethos lies at the very heart of our business.”
Betfred’s fine will go to funding socially responsible causes and programs. And given the Commission’s enhanced regulatory focus, more fines — and funding — may be in the offing.
Kay Roberts, the Gambling Commission’s Executive Director of Operations, said “In recent years there’s been a public focus on online gambling, but this case illustrates how important it is for us to continue our drive to raise standards across the whole industry. Gambling is a legitimate leisure activity enjoyed safely by millions, but it is vital that every single operators — either online or offline — has in place effective safeguards to prevent harm or crime.”
Meanwhile, US regulators are likely to take note of the UK’s investigation. Betfred currently operates sportsbooks in Arizona, Iowa, Colorado, Louisiana, Nevada, Ohio, Pennsylvania, Virginia, Washington, and Maryland.
Betfred, founded in 1967 by brothers Fred and Peter Done, operates roughly 1,600 betting shops in the UK.
