Gambling firms hit with multi-million pound fines as regulator cracks down on online casinos

Casumo, Videoslots and Daub Alderney have paid for failings

The Gambling Commission has vowed to tackle problem gambling and money laundering (Getty/iStock)

Online casinos are facing a new crackdown as the industry’s regulator vows to tackle problem gambling and money laundering.

Three firms have been hit with £14m in penalties and settlements by the Gambling Commission, after failing to put in proper safeguards to protect consumers.

Casumo and Daub Alderney were ordered to pay penalties of £5.85m and £7.1m respectively for failings while Videoslots agreed to pay £1m “in lieu of a financial penalty”. CZ Holdings has been banned from providing gambling services.

Nine other operators have been issued with letters about their conduct, and a further six are under investigation. Individuals responsible for the failings have also faced action, with three having their licences revoked.

The penalties and settlements come after figures highlighted a growth in online and television gambling adverts and an increase in the number of children who have gambled.

The Gambling Commission also found this month that nine in 10 pubs do not challenge children who gamble on machines on their premises.

Fruit machines are by far the most common place for children to gamble for the first time.

Gambling Commission chief executive Neil McArthur said: “I hope today’s announcement will make all online casino operators sit up and pay attention, as our investigations found that a large number of operators and their senior management were not meeting their obligations.

“It is not enough to have policies and procedures in place. Everyone in a gambling business must understand its policies and procedures and take responsibility for properly applying them.

“We expect operators to know their customers and to ask the right questions to make sure they [the operators] meet their anti-money laundering and social responsibility obligations.”

Mr McArthur added: “Anyone in a position of authority needs to be aware that we will not only act against businesses when we take regulatory action – we will also hold individuals to account where they are responsible for an operator’s failings.”

Jeremy Wright, secretary of state for digital, culture, media and sport, said: “Any online operator that thinks it can ignore its duty to protect players should take note today – there will be consequences. Protecting vulnerable consumers is our prime concern, and it must be the priority for gambling operators too.

“There are robust requirements to safeguard players and prevent money-laundering which all businesses must adhere to if they wish to operate in the British market. I am pleased to see the Gambling Commission taking the strongest possible action when companies fail to meet their obligations.”

Update: This story was amended at the request of Videoslots to clarify that it agreed a voluntary payment in lieu of a fine. 10/12/18