Platinum Gaming Penalised by UKGC to Pay £1.6 Million for Social Responsibility and Money-Laundering Failures

Another online gambling operator will be forced to pay a monetary fine imposed by the UK Gambling Commission (UKGC) due to failures to identify gambling-related harm and lack of prevention for money laundering.

The main gambling regulator of the British gambling sector launched an investigation after it received reports that Platinum Gaming allowed a convicted fraudster to spend a total amount of £629,420. During the enquiries, the Commission learned that the deposits the customer made were so high and losses so big that Platinum Gaming should have considered imposing some limits to the customer, including to ban them from its services.

Instead, the online gambling firm continued to allow the customer to gamble.

Now, as part of the settlement reached between the UKGC and Platinum Gaming, the online gambling operator agreed to return the amount of £629,420 to fraudster’s victims and to pay a total of £990,200 in lieu of a financial penalty. The money is set to be spent by the Commission to facilitate the delivery of the National Strategy to Reduce Gambling Harms.

According to the investigation’s results, anti-money laundering regulations were breached by the operator. In addition, Platinum Gaming failed to make adequate checks of the source of the funds which were used by the customer to gamble.

UKGC Imposes a Second Financial Penalty on Online Gambling Firm in a Few Days

This has been the second time in a couple of days when the UKGC is making an announcement of a financial penalty that is to be paid by an online gambling operator due to lack of compliance with social responsibility and money laundering rules. It was only yesterday when the Commission revealed that another company – Gamesys Limited – will also be hit with a sanction.

The Executive Director of the UKGC, Richard Watson, revealed that weaknesses had been found in Platinum Gaming’s systems, which eventually led to it allowing and the more than half-a-million pounds of stolen money to flow through its operations. This is unacceptable under the existing rules.

According to the official public statement, the regulatory settlement reached between Platinum Gaming Limited and the UK Gambling Commission involves failings of the online gambling firm in terms of customer interaction and anti-money laundering provisions.

Under the provisions of the Gambling Act 2005, all gambling operators which run under operating licences issued by the UKGC are required to make sure that their services will comply with the legal and regulatory framework of the country and the conditions of their licences. Gambling companies are obliged to prevent their operations from being associated with crime or any activities which support crime. They also have to make sure that their operations are conducted in a fair and transparent way, and to make sure that children and other vulnerable members of society are well protected against gambling-related harm.

The investigation carried out by the UKGC found that Platinum Gaming Ltd breached the social responsibility code provision 3.4.1(1)(c) and (e), related to customer interaction. In addition, the Commission also found a breach of the operator’s licence condition 12.1.2 related to anti-money laundering.

  • Author
Olivia Cole

Olivia Cole

Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.
Daniel Williams
Casino Guardian covers the latest news and events in the casino industry. Here you can also find extensive guides for roulette, slots, blackjack, video poker, and all live casino games as well as reviews of the most trusted UK online casinos and their mobile casino apps.

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