UKGC Issues £6 Million Fine to iGaming Operator Casumo

Casumo fined by UKGC

Casumo must now pay a huge £6 million fine to the UK Gambling Commission after failing in anti-money laundering services and social responsibility.

Every online gambling operator must adhere to certain rules and regulations in order to offer services in a given region of the world. In the United Kingdom, regulations are tightening up as the UK Gambling Commission (UKGC) wants to ensure player protection. The regulator continues to change the rules and require operators to adhere to strict regulations to try and control gambling harm. Just this week, it was announced that the regulator handed down a huge £6 million fine to Casumo for issues involving social responsibility failings and anti-money laundering activities.

Major Blow to Casumo

The online gaming and sportsbook provider is located in Malta and offers services around the world. Casumo was recently subject to an audit and the Commission was able to discover several issues from October 2019 to early January 2020.

The operator did not have the proper policies in place regarding customer care interventions. The regulator found that this failing led to a customer of the casino losing over £1 million in three years. The individual was not subject to a responsible gambling interaction by the brand for the activity.

Another customer lost £65,000 in one month while another lost over £70,000 in a seven-month time frame. Both customers were not approached by support to check on their well-being or questioned about their gambling activities.

One of the worst incidents was when a customer lost just under £90,000 in just five hours and another lost almost £60,000 in less than two hours. These major gambling sessions were not flagged at Casumo and should have alerted support.

The UKGC is getting heavy-handed with fines as they want operators to ensure that every player is monitored and cared for. The goal is to stop gambling addiction and harm by talking to players and providing help when red flags appear on their accounts.

Anti-Money Laundering Issues

The company has also been charged with anti-money laundering failings. Source of Funds (SOF) Checks have been lacking at the site. The regulator reported that Casumo’s SOF checks are not sufficient and there was no indication that an assessment or limit as to how much as player can spend based in income, and other risk factors, is being used.

The UKGC went on to state that the operator has not shown any indication that there are any AML polices in place or implemented in the correct manner. Commission Executive Director Richard Watson commented that the case against Casumo was brought on through planned compliance activity.

Watson went on to say that every operator needs to be aware that the UKGC is prepared to take firm action against any operator that does not raise standards.

Casumo has responded to the large penalty it faces. The company says it is cooperating with the UKGC in full and have underlined the failings. Casumo says the issues took place during hyper growth in its start-up phase.

The operator has addressed the issues by hiring a new CEO, Shelly Suter-Hadad. She was appointed in the position due to her vast experience in building compliance-led companies. She has been on board since January 2020.

Ms. Suter-Hadad commented that since she joined the company, her focus has been building a strong senior leadership team and personal management license holders. Her goal is to have a team that has knowledge and expertise in compliance, so that the company can operate further without any similar issues.

She took immediate action due to the failings in the past and has implemented fundamental operational changes to ensure Casumo is in full compliance and focused on responsible gambling. The company seems to be doing quite well under her leadership.

Associate Writer: Suzie has extensive experience writing on a number of different topics, but writing on slots remains her first love, and it really shows.