Home Online operator Videoslots Limited handed massive $849K fine

Online operator Videoslots Limited handed massive $849K fine

An online gambling operator has been slapped with a £650,000 (roughly $848,757) fine after the UK-based Gambling Commission found failures in an investigation.

The company, known as Videoslots Limited, runs websites including videoslots.co.uk, mrvegas.com, and megariches.com, and they’ve been told they will also receive a warning alongside the fine.

Due to the outcome of the investigation, the company must undergo a third-party audit too to ensure it is implementing its anti-money laundering and safer gambling policies, procedures and controls. This all comes after the Gambling Commission’s investigation which they say reveals anti-money laundering and social responsibility failures.

According to the regulator, the social responsibility failures primarily stemmed “from a reliance on systems which did not effectively monitor customer activity to identify harm or potential harm associated with gambling.”

The commission says their investigation determined “that although the operator’s monitoring systems automatically set a monthly deposit limit for customers, that limit ran across a calendar month and did not include the customer’s initial deposit.”

Videoslots Limited failed Commission investigation

As a result, the regulator says this resulted in one customer losing £5,000 ($6,523) in a month despite having a £3,000 ($3,914) monthly deposit limit, as well as another customer losing £5,000 in less than 24 hours despite having a £3,000 monthly deposit limit and another losing £7,500 ($9,785) over 18 days despite having a £2,000 monthly deposit limit.

“In addition, the monitoring systems deployed by Videoslots also did not effectively identify customers who were potentially at risk of gambling harm – one customer did not receive any interaction from the operator despite losing £6,550 over the course of three active days of gambling across a two-month period,” the commission said.

As for the AML failings, this was said to be due to gaps in associated policies and procedures, record management omissions, and an over-reliance on an algorithm to identify and monitor customer behaviors that appeared in some instances to be ineffective when tested. The gambling authority shared further examples of when situations occurred too.

Featured Image: AI-generated via Ideogram

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Sophie Atkinson
Freelance Journalist

Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…