The operator, which operates multiple betting shops across the UK, will pay the financial penalty and receive an official warning. Additionally, Betfred must undergo a mandatory third-party audit to verify effective implementation of its anti-money laundering and safer gambling policies, procedures, and controls.
Anti-Money Laundering Deficiencies
The Commission’s investigation identified several critical failures in Betfred’s anti-money laundering framework. The operator could not effectively identify and manage money laundering risks associated with customers using its B3 gaming machines. While Betfred utilized machine alerts and daily reports, practices in place during the 2024 assessment prevented the operator from assessing overall customer spending and associated money laundering and terrorist financing risks.
The investigation also revealed that Betfred lacked an effective policy to identify and handle customers who may be subject to financial sanctions. Risk-based thresholds for customer source of income enquiries were set inappropriately high at £15,000 in losses and £125,000 in stakes over 365 days.
Social Responsibility Shortcomings
The Commission found that Betfred could not adequately identify customer spending and associated financial indicators of gambling harm for customers using B3 gaming machines. Customer interactions did not consistently occur following the identification of risk indicators, and when interactions took place, they were not conducted in a manner that minimized the risk of gambling-related harm.
The quality of these interactions, particularly regarding understanding their impact, failed to meet regulatory standards.
Repeat Regulatory Action
This marks the second time Done Brothers (Cash Betting) Limited has faced regulatory action from the UK Gambling Commission. In 2023, the operator paid a £3.25 million regulatory settlement for social responsibility and anti-money laundering failures.
John Pierce, Commission Director of Enforcement, commented on the case: “While the failings identified during the 2024 Compliance Assessment were predominantly technical breaches rather than arising from specific customer examples, they were nevertheless unacceptable, particularly with thresholds appearing too high and insufficiently risk based when assessed in practice, and deficiencies in some processes and procedures adopted by the Licensee.”
Pierce acknowledged the improvements Betfred has already implemented since the issues were identified. “We fully acknowledge the improvements the operator has already made since these issues were identified, and the independent audit will be key to confirming these changes are sustained so that the operator continues to be fully compliant with social responsibility and anti-money laundering requirements,” he added.
The UK Gambling Commission continues to prioritize enforcement of anti-money laundering and player protection standards across the gambling sector, with repeat offenders facing increased regulatory scrutiny.
Source: UK Gambling Commission
