NetBet to pay £650,000 after Gambling Commission investigation

A Gambling Commission (GC) investigation has revealed a number of anti-money laundering and social responsibility failures at NetBet.

NetBet Enterprises Limited, operators of the NetBet online casino and sportsbook, will now pay £650,000 ($847,000) as part of a settlement with the UK regulator, in lieu of an official financial penalty.

All of that money will be going to socially responsible causes - in the past, the majority of settlement money channelled this way by the GC has gone to the soon-to-close GambleAware.

NetBet's AML measures have been found wanting by the probe, with some key risks being left out of its risk assessment, including "management of third-party business relationships, high stakes gambling and controls relating to third-country nationals residing in the UK."

An over-reliance on financial triggers was flagged as well, and examples were found of players demonstrating risky and concerning habits without triggering the necessary alarm bells.

On the social responsibility side, it was thought that NetBet did not have appropriate or effective processes of customer interaction and were not active enough in identifying indicators of harm in a timely manner.

It also appears that the operator submitted inaccurate information when filing its regulatory returns.

John Pierce, the GC Director of Enforcement, said: "This case highlights the serious consequences of failing to meet anti-money laundering and social responsibility obligations. We expect all operators to take note and ensure their systems are not only well-designed but are working effectively to protect consumers and to keep crime out of gambling"

In NetBet's favour, three mitigating factors were logged in the GC report, including an early acceptance of failings, full co-operation with the investigation and a swift plan to fix the central issues.

Despite these, the company will still have to commission and submit to an independent audit to ensure that it is moving towards a more compliant operation.

An aggravating factor appears to have been the fact that the GC feels it has already put out a number of statements regarding previous instances of AML and social responsibility failings from other operators.

In October, the regulator handed out one of its largest ever fines, ordering the operator of Unibet to pay £10m due to money laundering concerns.