Compliance Updates

UKGC: William Hill Group businesses to pay record £19.2m for failures

Published

2 years ago

March 28, 2023

Reading Time: 4 minutes

Three gambling businesses owned by William Hill Group will pay a total of £19.2 million for social responsibility and anti-money laundering failures.

WHG (International) Limited, which runs williamhill. com, will pay £12.5 million, Mr Green Limited, which runs mrgreen. com, will pay £3.7 million and William Hill Organization Limited, which operates 1,344 gambling premises across Britain, will pay £3 million.

Andrew Rhodes, Gambling Commission chief executive, said: “When we launched this investigation the failings we uncovered were so widespread and alarming serious consideration was given to licence suspension.

European Gaming Congress 2024 (Warsaw, Poland)

“However, because the operator immediately recognised their failings and worked with us to swiftly implement improvements, we instead opted for the largest enforcement payment in our history.”

Today’s action comes just a week after the Commission fined two operators owned by Kindred Group plc a combined £7.2 million and is the largest enforcement case taken on by the regulator. The previous largest was £17 million action taken against Entain in August last year.

Since the start of 2022 the Commission has concluded 26 enforcement cases with operators paying over £76 million because of regulatory failures.

Mr Rhodes said: “In the last 15 months we have taken unprecedented action against gambling operators, but we are now starting to see signs of improvement. There are indications that the industry is doing more to make gambling safer and reducing the possibility of criminal funds entering their businesses.

“Operators are using algorithms to spot gambling harms or criminal risk more quickly, interacting with consumers sooner, and generally having more effective policies and procedures in place.”

Social responsibility failures at William Hill businesses include:

- Having insufficient controls in place to protect new customers, and to effectively consider high velocity spend and duration of play until the customer may have been exposed to the risk of substantial losses in a short period:
  - One customer was allowed to open a new account and spend £23,000 in 20 minutes without any checks.
  - Another customer was allowed to open an account and spend £18,000 in 24 hours without any checks.
  - And a third customer was allowed to open a new account and spend £32,500 over two days without any checks. (Mr Green)
- Failing to identify certain customers at risk of experiencing gambling related harm and failing to carry out checks at an early stage in the customer’s journey – one customer lost £14,902 in 70 minutes. (Mr Green)
- Failing to identify risk of harm or intervene with certain customers earlier enough – one customer lost £54,252 in four weeks without the operator seeking income evidence, carrying out adequate checks, or using any other effective method to identify risk of harm. (WHG (International) Limited)
- Having insufficient controls which exposed new or returning customers to the risk of substantial losses in a short period of time – one customer opened his account and lost £11,400 over the first 30 days without being subject to sufficient checks and another customer did not have a telephone interaction until losses reached £45,800. (WHG (International) Limited)
- Failing to apply a 24-hour delay between receiving a request for an increase in a credit limit and granting it – one customer was allowed to immediately place a £100,000 bet when his credit limit had been set at £70,000. (WHG (International) Limited)
- Ineffective controls allowed 331 customers to gamble with WHG (International) Limited despite having self-excluded with Mr Green. (WHG (International) Limited)
- Failing to identify changes in the customer behaviour which should have provoked consideration of whether the customer was experiencing harm – a safer gambling interaction was conducted only after he had placed and had accepted an £18,000 bet (William Hill Organisation Ltd (WH Retail))
- Having insufficient controls in place to protect new customers, and to effectively consider high velocity spend and duration of play until the customer may have been exposed to the risk of substantial losses in a short period:
  - After its retail premise re-opened following the Covid pandemic lockdown, the operator allowed one customer to lose £10,600 in two days without a safer gambling interaction.
  - Despite being unknown and staking £42,253 in 130 bets over a three-day period, staff did not identify one customer as being at risk of experiencing harms associated with gambling or undertake any customer interactions. (William Hill Organisation Ltd (WH Retail))

Anti-money laundering (AML) failures include:

Allowing customers to deposit large amounts without conducting appropriate checks – one customer was able to spend and lose £70,134 in a month, another to lose £38,000 in five weeks and another to lose £36,000 in four days. (WHG (International) Limited)
Allowing customers to deposit large amounts without conducting appropriate checks – one customer deposited £73,535 and lost £14,068 in four months (Mr Green)
Customers were able to stake large amounts of money without being monitored or scrutinised to a high enough standard – the operator failed to request Source of Funds (SoF) evidence when one customer staked £19,000 in a single bet, did not obtain documentation from a customer who staked £39,324 and lost £20,360 in 12 days, and did not obtain SoF evidence from a customer who staked £276,942 and lost £24,395 over two months. (William Hill Organisation Ltd (WH Retail))
Policies, procedures and controls lacked guidance on appropriate action to take following the results of customer profiling and how its findings should be used to establish the appropriate outcome. (WHG (International) Limited) and (Mr Green)
Procedures and controls lacked hard stops to prevent further spend and mitigate against money laundering risks before customer risk profiling is completed. (WHG (International) Limited) and (Mr Green)
AML staff training provided insufficient information on risks and how to manage them (WHG (International) Limited) and (Mr Green)

All £19.2 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 it undergoes a third-party audit to assess that it is effectively implementing its AML and safer gambling policies, procedures and controls.

Compliance Updates

Navigating Compliance and Global Expansion: Endorphina’s Journey in the iGaming Industry

Published

5 hours ago

March 17, 2025

George Miller

navigating-compliance-and-global-expansion:-endorphina’s-journey-in-the-igaming-industry

Reading Time: 4 minutes

HIPTHER, the organizer of the Prague Gaming & TECH Summit 2025, is delighted to welcome Endorphina as the Awards Party Sponsor and a leading force in the iGaming sector. In this exclusive interview, we speak with Džangar Jesenov, Corporate Compliance Manager at Endorphina, to explore the company’s recent achievements, including new market entries, rigorous security certifications, and their strategic focus on the LATAM region.

Endorphina recently secured authorization as a supplier of online slot games in Peru and obtained B2B licenses in Sweden and Denmark. What were the key challenges in achieving these milestones, and how do they align with your broader market expansion strategy?

Yes, it’s true—we are now officially authorized as a supplier in Peru, Sweden, and Denmark. Expanding into these regulated markets was a carefully structured process that required thorough preparation and deep regulatory understanding.

From a compliance perspective, we dedicated nearly 11 months to analyzing each market, studying regulatory frameworks, and engaging directly with local authorities. This hands-on approach allowed us to interpret legal details correctly and streamline our applications. Once we completed our groundwork, our submissions proceeded as planned, reflecting our meticulous preparation and proactive strategy.

These expansions are part of our long-term vision to strengthen our global presence, ensuring that Endorphina remains at the forefront of regulated gaming. By entering these strategic jurisdictions, we continue to build a trusted brand that delivers premium, compliant, and innovative gaming experiences.

Endorphina completed an ISO 27001 security certification audit, a significant achievement in information security. Can you provide more details about it, and share how this certification impacts your operations in terms of data security and compliance

Security has always been a top priority for us—not just for compliance reasons but because we believe in building trust with our partners and players.

Our decision to pursue ISO 27001 certification was driven by our commitment to establishing the highest security standards across all operations.

Rather than adapting to individual country regulations piecemeal, we chose the most rigorous and internationally recognized approach: an overarching Information Security Management System (ISMS) that meets global best practices. This certification reinforces the security of our infrastructure, protecting both operator partners and players.

Achieving ISO 27001 is a reflection of years of experience and expertise within our compliance team. By implementing this standard, we future-proof our systems against evolving security threats while ensuring seamless compliance across multiple jurisdictions. Now, our partners know that when they work with Endorphina, they’re working with a provider that takes security seriously and operates at the highest level of integrity.

You recently concluded successful security audits in Spain, Italy, Argentina, and Denmark. How do you navigate the diverse compliance requirements across these regions, and what best practices would you share with other iGaming businesses?

Each country has its own regulatory framework, but ultimately, they all share a common goal: ensuring player protection and responsible gaming.

One of the most valuable lessons we’ve learned is that proactivity is key. Instead of reacting to regulatory changes at the last minute, we focus on staying ahead by implementing strong security standards that align with global best practices.

Here are three key best practices we follow at Endorphina:
– Think from the player’s perspective – A safe and fair gaming environment should always be the priority. Our compliance decisions are made with player security and trust in mind.
– Establish a strong, unified security framework – Rather than adapting compliance measures market by market, we implement a universal security model (ISO 27001) that seamlessly integrates into different regulatory landscapes.
– Invest in people – Compliance isn’t just about policies; it’s about the expertise and dedication of the team. Continuous education, adaptation, and training are key to staying ahead of ever-changing regulations.

That’s why for me, and I’m sure for many people on my team as well, compliance is more of a craft than just a job.

Endorphina concluded the year with a strong focus on the LATAM region, achieving certification as one of the first suppliers of online slot games in Brazil. What opportunities does this milestone present, and how do you plan to further strengthen your presence in the region?

The LATAM region has been a long-term focus for Endorphina, and we have been expanding into these markets for several years. Argentina and Colombia were among the first jurisdictions where our games became highly popular, and Brazil was the next strategic step in our expansion.

With Brazil’s regulatory framework evolving, we saw an opportunity to leverage our experience from other regulated markets to establish a strong foothold early on. Being one of the first authorized slot suppliers in the country is a huge achievement, as it positions us as a trusted provider in a highly competitive market.

Looking ahead, we plan to actively grow our footprint in LATAM by:
– Expanding our certified game portfolio – We already have 83 games certified for Brazil, and this number will continue to grow.
– Strengthening partnerships with local operators – By offering localized content and tailored marketing support, we ensure our games resonate with Brazilian players.
– Adapting to new regulations – As Brazil tightens its iGaming laws, we expect greater regulatory enforcement, which will increase market stability and further strengthen licensed operators and suppliers like Endorphina.

Our goal is clear: to be a leading force in LATAM’s regulated iGaming market, delivering premium, compliant, and engaging gaming experiences.

At the Prague Gaming & TECH Summit 2025, you will be speaking on the panel “Navigating the Maze: iGaming Compliance Across CEE”. Can you give us a taste of the key insights you’ll be sharing with the audience?

I’m really looking forward to the Prague Gaming & TECH Summit 2025—it’s always a fantastic opportunity to reconnect with industry friends and exchange insights.

My main focus will be sharing practical, real-world compliance strategies that can help operators and suppliers navigate regulatory complexities across Central and Eastern Europe (CEE). I expect there will be a lot of discussion around market-specific compliance challenges, particularly in the Czech Republic and across the EU.

Rather than delivering a one-way presentation, I want this to be a dynamic and interactive discussion. My goal is to create a space for open dialogue, where attendees can ask direct questions, share their own experiences, and gain practical takeaways that they can apply in their own businesses.

Compliance is constantly evolving, and my mission is to make it accessible, insightful, and—dare I say—exciting for everyone attending the panel! 😊

With Endorphina at the Prague Gaming & TECH Summit 2025, this year’s event promises invaluable insights into compliance across CEE and the evolving iGaming market. Don’t miss the opportunity to connect with industry leaders, gain exclusive market perspectives, and be part of the most dynamic gathering in the CEE region!

Join us on 25-26 March 2025 in Prague – Register now and explore the full agenda!

The post Navigating Compliance and Global Expansion: Endorphina’s Journey in the iGaming Industry appeared first on European Gaming Industry News.

Compliance Updates

Poppleston Allen bolsters Gambling Team with specialist commercial law consultant

Published

7 hours ago

March 17, 2025

George Miller

poppleston-allen-bolsters-gambling-team-with-specialist-commercial-law-consultant

Reading Time: < 1 minute

Leading licensing law firm Poppleston Allen is delighted to announce that betting and gaming industry stalwart Tom Grant is joining their Gambling Team as a consultant solicitor, bolstering its offering by advising on commercial contracts.

Tom has more than 20 years of experience in the gambling sector and has advised high-profile clients including Buzz Bingo, Cowells-Arrow, FSB and GAN as well as numerous growing businesses within the sector. Tom will work with the Gambling team drafting, negotiating, and advising on a range of commercial agreements that are essential to the growth of our clients’ business, such as sponsorship agreements, game development agreement, sports data rights licences, content licensing, platform agreements, affiliate terms, white-label agreements and customer terms and conditions.

Partner and department head Nick Arron comments: “I’m really looking forward to working with Tom. We’ve had a number of clients in common for years and our legal practices complement each other nicely. Tom’s expertise and understanding of regulatory frameworks and commercial challenges are fairly unique within the gambling sector, and allows us to offer additional services to our clients and reflects the opportunities we see in the gambling industry.”

Tom Grant said: “This is a great opportunity for both of us. The team has an outstanding reputation in the sector, and I look forward to contributing my expertise to help clients navigate the complexities of commercial agreements and achieve success in a competitive and dynamic market.”

Alongside his work with Poppleston Allen, Tom will continue to grow his own practice at Grant Legal.

The post Poppleston Allen bolsters Gambling Team with specialist commercial law consultant appeared first on European Gaming Industry News.

Compliance Updates

Spillemyndigheden Calls Attention to FATF’s Updated Lists of High-risk Jurisdictions

Published

7 hours ago

March 17, 2025

Niji Narayan

spillemyndigheden-calls-attention-to-fatf’s-updated-lists-of-high-risk-jurisdictions

Reading Time: < 1 minute

The Danish Gambling Authority has called attention to FATF’s (Financial Action Task Force) updated lists of high-risk jurisdictions: the Grey List (jurisdictions under increased monitoring) and Black List (call for actions). Among other things, gambling operators must include FATF’s lists of high-risk jurisdictions when assessing players’ risk.

Jurisdictions listed on the Grey List are Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, the Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Laos, Lebanon, Mali, Monaco, Mozambique, Namibia, Nepal, Nigeria, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen.

Jurisdictions listed on the Black List are Democratic People’s Republic of Korea, Iran and Myanmar

Gambling operators are required to conduct enhanced customer due diligence (EDD) pursuant to section 17(1) of the Danish AML Act, if a player is assessed to impose a higher risk of the gambling operator being misused for money laundering or terrorist financing.

Gambling operators shall conduct this risk assessment based on Annex 3 to the AML Act (high-risk factors) which includes the FATF high-risk country lists (the so called black list and grey list)

It is not required that gambling operators perform EDD if a country is listed on the FATF’s list. EDD are only a requirement for players from jurisdictions listed in the EU Regulation of High Risk Third Country list pursuant to. 17(2) of the AML Act.

The post Spillemyndigheden Calls Attention to FATF’s Updated Lists of High-risk Jurisdictions appeared first on European Gaming Industry News.