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Compliance Updates

UKGC: Entain to pay £17 million for regulatory failures

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A gambling business is to pay £17 million for social responsibility and anti-money laundering failures at its online and land-based businesses.

Entain Group will pay £14 million for failures at its online business LC International Limited which runs 13 websites including ladbrokes .com, coral.co.uk and foxybingo .com.

It will also pay £3 million for failures at its Ladbrokes Betting & Gaming Limited operation which runs 2,746 gambling premises across Britain.

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All £17 million will be directed towards socially responsible purposes as part of a regulatory settlement.

Additional licence conditions will also be added to ensure a business board member oversees an improvement plan, and that a third-party audit to review its compliance with the Licence Conditions and Codes of Practice takes place within 12 months.

Andrew Rhodes, Gambling Commission chief executive, said: “Our investigation revealed serious failures that have resulted in the largest enforcement outcome to date.

“There were completely unacceptable anti-money laundering and safer gambling failures. Operators are reminded they must never place commercial considerations over compliance.

“This is the second time this operator has fallen foul of rules in place to make gambling safer and crime free.

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“They should be aware that we will be monitoring them very carefully and further serious breaches will make the removal of their licence to operate a very real possibility. We expect better and consumers deserve better.”

Social responsibility failures include:

  • being slow to interact with, or not interacting with, certain customers in a way which minimised their risk of experiencing harms associated with gambling – the operator conducted just one chat interaction with an online customer who spent extended periods gambling overnight during an 18-month period in which they deposited £230,845
  • allowing customers subject to enquiries and restrictions to open multiple accounts with the Licensee’s other brands – one online customer who was blocked with Coral because they had spent £60,000 in 12 months and failed to provide Source of Funds (SOF) was immediately able to open an account with Ladbrokes and deposit £30,000 in a single day
  • one shop customer was not escalated for a safer gambling review by either the shop or support office teams despite staking £29,372 and losing £11,345 in a single month
  • overseeing the failure of local staff or area managers to escalate potential concerns with customers sooner – one shop customer was not escalated despite being known to be a delivery driver who had lost £17,000 in a year and another was not escalated despite staking £173,285 and losing £27,753 over the same time period.

Anti-money laundering failures include:

  • failing to conduct an adequate risk assessment of the risks of their online business being used for money laundering and terrorist financing
  • allowing online customers to deposit large amounts without carrying out sufficient SOF checks – one consumer was allowed to deposit £742,000 in 14 months without appropriate SOF checks and another, who was known to live in social housing, was allowed to deposit £186,000 in six months without sufficient SOF checks
  • failing to conduct enhanced customer due diligence checks soon enough – one online customer was allowed to deposit £524,501 between December 2019 and October 2020 before the operator closed the account due to the customer failing to supply SOF evidence
  • placing excessive reliance on open-source information – one online consumer was allowed to deposit £140,700 between December 2019 and October 2020 but prior to a SOF check in August 2020, the operator based its knowledge of the customer’s source of wealth on open-source searches
  • allowing customers to stake large amounts of money without having been monitored or scrutinised – one betting shop customer was allowed to stake a total of £168,000 on shop terminals over eight months before the operator carried out due diligence checks.

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Compliance Updates

Massachusetts Gaming Commission Launches Official Seal of Approval

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The Massachusetts Gaming Commission (MGC) has recently developed and adopted an official seal of approval, which all licensed sports betting operators in the state are now required to display on their digital platforms. The introduction of this seal represents a significant step in the MGC’s ongoing efforts to promote responsible and regulated gaming within the Commonwealth.

The seal is intended to serve as a clear signal to consumers that they are accessing a sports betting platform licensed and regulated by the MGC. By prominently featuring this seal, customers can easily distinguish between legal, licensed operators and unsafe, illegal alternatives.

“The MGC has spent considerable efforts ensuring that the operators licensed in the Commonwealth share our values and are committed to consumer protections and responsible gaming. Massachusetts residents who choose to gamble on sports deserve to know their data, personal and financial information are protected, and only the legal marketplace offers those protections. By locating this seal, users will be able to easily identify a legal sportsbook from an illegal operator,” said Commissioner Eileen O’Brien.

Offshore and unlicensed sports betting sites have been accessible to patrons across the US for years. However, with the legalization of sports wagering in Massachusetts, these offshore operators may attempt to present themselves as legitimate. Yet, they are not licensed by any state jurisdiction and do not comply with the same regulations and consumer protection standards as the legal market.

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The risks of using these illegal platforms extend beyond potential data breaches or financial losses. Unlicensed operators may refuse to honor winning bets, leaving consumers with little to no recourse. Illegal gambling activities are also often tied to other serious crimes. The Massachusetts Attorney General’s Office has issued cease-and-desist orders to several major illicit operators. It will continue to monitor and take action against such unlawful activities in coordination with the MGC. The Commission would urge anyone looking for more information on illegal platforms to visit the website of the American Gaming Association.

This newly adopted seal serves as a visual reminder of the regulations in Massachusetts’s legal sports betting market. It enhances consumer protection and builds trust with members of the public who choose to engage in sports betting. By identifying the official MGC seal, customers can have peace of mind knowing they are accessing a fully licensed platform compliant with the Commonwealth’s laws and regulations.

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Compliance Updates

IAGR confirms new Board members

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The International Association of Gaming Regulators (IAGR) has announced the appointment of four new trustees to its Board, each bringing unique expertise and leadership to strengthen IAGR’s global regulatory efforts:

  • Anders Dorph, Danish Gambling Authority (Europe)
  • Peter Kesitilwe Emolemo, Gambling Authority of Botswana (Africa)
  • Kevin Mullally, General Commercial Gaming Regulatory Authority (Asia/Oceania)
  • Louis Rogacki, New Jersey Division of Gaming Enforcement (North America)

IAGR President Ben Haden said, ‘I’m delighted to welcome our four new trustees to the IAGR Board. Their diverse expertise and leadership across different jurisdictions will bring fresh perspectives to our work, further strengthening our global approach to gaming regulation.

‘I look forward to collaborating with Peter, Louis, Kevin and Anders as we continue to foster innovation and drive forward effective, responsible regulation for the benefit of the global gaming community.

‘We also extend a big thank you to Trude Høgseth Felde and Mabutho Zwane for their dedicated service as they complete their terms on the Board, and I’m pleased to announce that Jason Lane will continue for another term as a Trustee.’

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As a leading forum for gaming regulators worldwide, IAGR enables members to meet, share information, discuss legislative developments, exchange views and learn best practices in gaming regulation.

In recent news, IAGR has also confirmed that its 2025 annual conference will be held in Toronto, Canada, from 20 to 23 October 2025, with registrations opening in early 2025.

The post IAGR confirms new Board members appeared first on European Gaming Industry News.

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Internet Vikings Provides VMware License to Alpha Innovations

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Internet Vikings, a licensed in-state hosting provider for iGaming and online sports betting, announces their partnership with Alpha Innovations, a provider of data center services. Under the agreement Internet Vikings will supply Alpha Innovations with VMware licensing through its VMware White Label solution.

Alpha Innovations, known for being a leading Managed Services Provider  including cloud computing, data storage, and backup, has chosen to partner with Internet Vikings, a member of the Broadcom Premier Partnership program. This membership highlights Internet Vikings’ capabilities in supporting large-scale and highly regulated environments.

Internet Vikings will provide Alpha Innovations with the essential VMware license, an asset for their cloud offerings. This addition enhances Alpha Innovations’ capability to set up and maintain regulated and compliant cloud environments while upholding their high standards.
“The added value of our licensing solutions and support services aligns perfectly with Alpha Innovations’ needs,” said Rickard Vikström, CEO and Founder at Internet Vikings.

Douglas Tate, CEO at Alpha Innovations added, “As a leading Managed Service Provider (MSP), Alpha Innovations is always looking for ways to improve our service offerings. Our partnership with Internet Vikings is a win-win for our clients. By leveraging Internet Vikings’ VMware licensing solutions, we can offer our clients more flexible, scalable, and secure cloud solutions. This will ultimately help our clients achieve their business goals more efficiently and effectively.”

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Both companies are committed to maintaining a transparent and mutually beneficial relationship, demonstrating how data centers and hosting providers can collaborate to meet the licensing needs of the industry.

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