The UK Gambling Commission (UKGC) has fined online casino operator Videoslots a staggering £13 million for serious failings in its social responsibility and anti-money laundering (AML) protocols. The penalty follows a 14-month investigation covering activity from January 2021 to October 2023 and ranks among the highest sanctions ever issued by the Commission.
Key Compliance Breaches
Regulators uncovered widespread lapses, including:
- Excessive unchecked losses: 58 customers lost over £50,000 without undergoing appropriate affordability checks.
- Neglected source of funds: 90% of high-risk accounts reviewed lacked sufficient verification.
- Weak customer interaction: 72% of interventions were deemed generic and ineffective.
- Outdated AML systems: Company policies failed to meet 2022 regulatory benchmarks.
Penalty Breakdown
The total financial penalty includes:
- £11.7 million in divestment—equal to 110% of the gross gaming yield from impacted accounts
- £1.3 million in regulatory fines
- £100,000 for investigation cost recovery
Regulatory Response
Kay Roberts, UKGC’s Executive Director of Enforcement, stated:
“The scale of neglect was staggering. Customers were depositing £20,000 a month on declared incomes of just £30,000. This penalty reinforces our determination to uphold the highest industry standards.”
Operator Response and Reforms
In response, Videoslots has launched significant compliance overhauls:
- Full revamp of its safer gambling systems
- Mandatory financial checks for customers depositing over £1,000 monthly
- Hiring of former regulatory personnel
- Independent auditing of VIP and high-risk player processes
Industry Implications
The ruling arrives ahead of stricter UK affordability rules set to take effect in August 2025. Industry-wide, compliance tech firms have reported a 40% surge in demand, and operator shares dropped 2–3% following the news. Videoslots retains its license but must now provide quarterly compliance updates throughout 2025.
