Novomatic Subsidiary Greentube Faces £1m Penalty for Compliance Failings
In a recent development highlighting ongoing regulatory challenges in the gambling industry, Greentube Alderney Limited, trading as Admiral Casino, has been fined £1m by the Gambling Commission for multiple social responsibility and anti-money laundering lapses.
- Greentube Alderney Limited, a Novomatic subsidiary, was fined £1m for social responsibility and anti-money laundering failures.
- This penalty is part of a regulatory settlement directed towards funding socially responsible causes.
- This marks the first enforcement action against an operator by the UKGC since fining bet365 in April 2024.
- It’s Greentube’s second encounter with UK regulatory action, following a £685,000 payout in 2021 for similar breaches.
- The Gambling Commission stresses that operators consistently meet regulatory standards to ensure safe, crime-free gambling.
The UK Gambling Commission (UKGC) has imposed a £1m settlement on Greentube Alderney Limited, a Novomatic subsidiary after the company was found to have committed several breaches of social responsibility and anti-money laundering (AML) regulations. The settlement, which allocates the fine to support socially responsible initiatives, signifies the UKGC’s continuing commitment to maintaining strict regulatory standards within the gambling industry.
This enforcement action, the first since a £582,120 settlement with bet365 in April 2024, underscores the regulatory body’s readiness to address and penalise non-compliance diligently. This isn’t the first time Greentube has been in trouble with the UKGC. The company was previously fined £685,000 in 2021 for similar transgressions.
A Pattern of Non-Compliance for Greentube
The Gambling Commission’s director of enforcement, John Pierce, emphasised that this case stemmed from a follow-up compliance assessment. This was meant to ensure Greentube Alderney had taken previous lessons from regulatory actions to heart. Despite acknowledging some general improvements, the UKGC found that the company still displayed significant shortcomings in upholding necessary regulatory standards.
The Specific Greentube Failings Highlighted
- Social Responsibility Lapses: Greentube failed to effectively implement controls for the timely identification of harm or vulnerability among its customers. One striking example involved a customer who, despite providing a bank statement showing a troubling financial situation – including a negative balance and transactions with another gambling operator – was allowed to deposit £4,000 over four months without the proper scrutiny.
- Anti-Money Laundering Deficiencies: The company was also reprimanded for its sluggish response to suspicious activities. In one instance, a customer’s bank statement showed over £100,000 in unusual transactions. However, it took Greentube four months to escalate the issue for further examination.
A Stern Warning for the Industry
Pierce sternly reminded all operators of the importance of adhering to rules meant to safeguard gambling from crime and ensure its safety. He warned that repeat offenders would face increasingly severe consequences. The UKGC’s firm stance reflects its dedication to eliminating any failure to uphold anti-money laundering standards across the gambling sector.
The regulator also added that it would continue closely monitoring Greentube Alderney to ensure compliance with the regulatory standards. As the gambling industry evolves, this case highlights the critical need for operators to maintain high compliance standards to prevent similar punitive actions.
The industry will watch closely how this significant regulatory action influences the broader dialogue on gambling safety and integrity.
Peter is our Editor-in-Chief at Gamblingauthority. He has more than eigth years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
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