Compliance Updates
UKGC: Licence Suspension and £3.8M Fine for Genesis Global Limited
Britain’s gambling industry is being warned that the Commission “will use all tools at its disposal to ensure consumer safety” following enforcement action involving suspending an online casino from operating and then fining it £3.8m.
Genesis Global Limited – which runs 14 websites including genesiscasino.com, casinoplanet.com and casinocruise.com – has also been given a warning by the Commission and told it must undergo further extensive auditing.
The operator was suspended from operating in Britain after enquiries revealed significant social responsibility and money laundering failures.
Three months later (14 October 2020) the suspension was lifted following significant compliance improvements but the Commission’s investigation continued and now concluded with a £3.8m fine, a warning and an additional licence condition demanding further auditing.
Helen Venn, Commission Executive Director, said: “All gambling businesses should pay very close attention to this case.
“The Commission will use all tools at its disposal to ensure consumer safety and that extends to stopping a business from actually operating.
“Failing to follow rules aimed at keeping gambling safe and crime-free will never be a viable business option for gambling businesses in Britain.”
Social responsibility failures included:
- not carrying out any meaningful responsible gambling interactions with, or placing any effective restrictions on the account of, a customer who spent £245,000 in three months. Three days into their relationship Genesis knew the customer was an NHS nurse earning £30,000 a year
- not carrying out any meaningful responsible gambling interactions or establishing affordability of a customer who lost £197,000 over six months. The same day the customer closed her account, stating she wanted to spend more time with her family, she was allowed to open another account with the business and deposit £200
- not carrying out any meaningful responsible gambling interactions or establishing affordability of a customer who lost £234,000 in a six week period.
Money laundering failures included:
- requested source of funds only after one customer had lost £209,000. Prior to this Genesis had estimated the customer was earning £111,000 a year because the consumer had told them they were a director and this was the average salary of directors in London. The operator failed to take into account the company was dormant and that there would be a wide range of director salaries. Genesis also failed to verify information supplied by the customer to substantiate the level of spend
- a customer was allowed to deposit over £1,300,000 and lose £600,000 before carrying out sufficient source of funds checks. The customer provided Genesis with documentation including a bank statement which showed deposits into the account to the value of £23,000 and payments out to the value of £27,000 – clearly not enough to support the level of gambling
- a customer was allowed to lose £107,000 over six months without carrying out sufficient source of funds checks. Genesis relied on assertion that the customer’s money came from an allowance from parents who owned factories overseas and failed to verify this information. The customer provided a number of bank statements, however, they did not evidence any source of income but did show transactions with other gambling operators.
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BMM Testlabs
BMM Testlabs Earns Accreditation in Maranhão, Brazil To Test Fixed Odds Betting Systems and Lottery Platforms
BMM Testlabs, the world’s original gaming test lab renowned for exceptional product compliance and testing services, today announced its official accreditation to test systems and games for the Brazilian state of Maranhão.
This new accreditation allows BMM Testlabs to test fixed-odds betting systems and lottery platforms for the Maranhão market. The Company is now authorized in every Brazilian jurisdiction that has regulated at state-level online fixed-odds betting.
The Maranhão accreditation, issued by Maranhão Parcerias SA (MAPA/LOTEMA), authorizes BMM Testlabs to work with lottery operators in the state to ensure compliance and quality standards for the gaming and lottery industry through end-to-end product compliance testing for Maranhão’s standards.
Additionally, Brazil’s Secretaria de Prêmios e Apostas has federally authorized BMM Testlabs to test betting systems, live gaming studios, and online games used by fixed-odds betting operators.
BMM Testlabs’ Marzia Turrini, President of iGaming & Cybersecurity, said, “We are excited and deeply honored that the State of Maranhão’s official lottery has entrusted BMM Testlabs with the responsibility of testing products for their new online fixed odds betting program, knowing that we’ll do so with the highest levels of impartiality, technical expertise, transparency, efficiency, and, most of all, integrity.”
With the Maranhão accreditation, BMM Testlabs solidifies its position as the leading independent test lab in Brazil. BMM Testlabs is accredited in all jurisdictions that have authorized fixed-odds betting for online gaming and sports betting.
BMM Testlabs brings 44 years of global leadership in product compliance across regulated markets and is trusted by games, systems, and lottery manufacturers, suppliers, developers, and regulators worldwide.
In addition to product compliance testing, BMM Testlabs provides end-to-end cybersecurity protection solutions. Through its sister company, RG24seven Virtual Training, BMM also offers compliance-grade virtual training on responsible gaming, anti-money laundering, and other important topics – presented by industry experts and available in English, Spanish, and Portuguese.
The post BMM Testlabs Earns Accreditation in Maranhão, Brazil To Test Fixed Odds Betting Systems and Lottery Platforms appeared first on Gaming and Gambling Industry in the Americas.
Compliance Updates
UKGC Issues Urgent Warning on Unlicensed Platforms and Operator Responsibility
Tackling unlicensed gambling is central to the UK Gambling Commission’s objective of preventing gambling from being a source of crime and disrupting this illegal activity at scale.
The Commission has become aware of casino games supplied by licensed operators appearing on unlicensed websites available to the British consumers illegally.
Those markets are unregulated, and do not provide the same safeguards that are required of operators. They often target vulnerable customers, such as those who have self-excluded via the GAMSTOP scheme. The websites may have inadequate social responsibility and Anti-Money Laundering (AML) controls in place and leave customers open to risks of fraud, data privacy issues and unfair practices. It is therefore imperative that the Commission, in collaboration with the gambling industry and key partners take all possible steps to mitigate risk to GB consumers.
Operators providing Business-to-Business (B2B) gaming solutions including live games, live casinos and slots (B2B operators) can help the Commission tackle the illegal market by reviewing their own practices. The Commission has found that, in some instances, third party resellers are distributing games supplied by operators to the illegal market, often in breach of their contractual obligations. Commission licensees may have been negligent in allowing them to do so and in the process, place their own licence at risk.
The Commission advised operators to actively monitor their business relationships to ensure any partners are not participating in offering illegal gambling facilities to the GB market, and where identified, terminating relationships where non-compliance has occurred.
It is critical that licensees also actively engage with the Commission where such activity is identified, setting out the preventative measures adopted to ensure such activity ceases immediately. Actively notifying the Commission and setting out a clear plan to mitigate the issue at pace is a minimum requirement.
The Commission is adopting a proactive approach to this matter and may decide at any point to conduct test purchasing activity to evidence potential breaches.
The post UKGC Issues Urgent Warning on Unlicensed Platforms and Operator Responsibility appeared first on European Gaming Industry News.
Compliance Updates
The Isle of Man Gambling Supervision Commission Appoints Mark Rutherford as its New Chief Executive Officer
The Isle of Man Gambling Supervision Commission has confirmed the appointment of Mark Rutherford as its new Chief Executive Officer.
His role is to oversee and maintain the Isle of Man’s regulatory standards for Gambling and Medicinal Cannabis and ensure the integrity, transparency and effectiveness of the Island’s regulatory framework, safeguarding both the reputation of the sector and the protection of consumers.
Having worked within the Isle of Man GSC for 15 years, Mr Rutherford’s experience spans multiple roles within the Island’s public service, including having served in the Income Tax Division before joining the GSC as the Director of Policy and Legislation.
Acting chair of the GSC, David Butterworth, said: “I am pleased to announce the appointment of Mark as Chief Executive of the GSC. His transition into this role comes at a crucial time, ensuring we uphold the highest standards of transparency and protection while adapting to the sector’s evolving challenges.
“With his extensive experience and clear vision for improvement, Mark is a valuable asset who is committed to strengthening our regulatory approach to meet the Island’s needs and those of the sectors it represents well into the future.”
Mr Rutherford said: “I am grateful to the GSC Board for their confidence in me as CEO. I have lived and worked in the Isle of Man in both private and public sectors and my role as a public servant has been dedicated to serving the Isle of Man. I am committed to ensuring the effective, transparent and secure regulation of gambling and the production of medicinal cannabis here in the Island.
“There is an important opportunity to strengthen the Isle of Man’s defences against financial crime and I am embarking on an ambitious programme of reform to reinforce the powers we have to supervise and regulate the gambling sector. I am also working closely with partner agencies to understand the emerging threat that faces the Island’s gambling sector.
“It is imperative that we continue to review and adapt our approach to stay aligned with evolving challenges, including the emerging risks and typologies arising from particular markets. I shall be examining those threats closely to ensure that we are alert to them and manage the risk.
“I will also be further expanding our international cooperation and domestic inter-agency working and the GSC will continue to play its part in the network of authorities that detect and disrupt criminal activity in the Island. It is vital that we maintain alignment with the international standards’ requirements for combatting financial crime as they continue to be evolve.
“Over the last 25 years the Island has built a global reputation as a high-quality regulatory regime for eGaming and we have seen the sector grow and diversify. I am keen that we support responsible growth in this important sector by licensing quality operators who share our values of safety and fairness.”
The post The Isle of Man Gambling Supervision Commission Appoints Mark Rutherford as its New Chief Executive Officer appeared first on European Gaming Industry News.
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