ProgressPlay Faces £1 Million Fine for Regulatory Breaches
The Gambling Commission in Great Britain has imposed a substantial penalty of £1 million (equivalent to $1.4 million) on ProgressPlay, a white-label online gaming operator, following a compliance audit that uncovered serious shortcomings in their anti-money laundering (AML) protocols and social responsibility practices.
Who is ProgressPlay?
Based in Cyprus, ProgressPlay operates a diverse portfolio of 134 gaming websites, including notable platforms like Acedbet.com, Casinomite.com, and Playmagical.com. The company holds gambling licenses not only in Great Britain but also in Malta and Ireland.
Regulatory Findings
In its report, the Gambling Commission outlined that ProgressPlay had violated multiple licensing conditions between August 2021 and August 2024. Specifically, it failed to adhere to social responsibility codes and general operating provisions, leading to both a financial penalty and a formal warning. Additionally, ProgressPlay will undergo a thorough third-party audit to verify the implementation of more effective AML and social responsibility measures.
Identifying the Missed Responsibilities
The investigation revealed that ProgressPlay did not perform a comprehensive risk assessment concerning money laundering and terrorist financing. The operator also lacked the necessary controls to mitigate these risks, neglecting to adequately understand the spectrum of threats associated with its business model.
Furthermore, the Gambling Commission pointed out deficiencies in how ProgressPlay monitored customer transactions. Without sufficient scrutiny, the company failed to verify the sources of funds, leaving potential gaps in customer risk profiles unaddressed.
Customer Interaction Concerns
ProgressPlay’s social responsibility infractions were equally concerning. The operator lacked robust systems to monitor customer activity upon account creation, which hindered timely intervention for gambling-related issues.
The commission criticized the company’s customer interaction policy for not aligning with the established Licence Conditions and Codes of Practice (LCCP). Issues included how ProgressPlay handled various customer scenarios and whether additional action was necessary to mitigate gambling harm.
Broader Implications of Non-compliance
Repeated breaches of regulations are troubling, especially since this isn’t the first instance of enforcement action against ProgressPlay. In May 2022, the company was penalized £175,718 for similar AML and social responsibility violations.
John Pierce, the Gambling Commission’s Director of Enforcement and Intelligence, expressed deep concern about the operator’s systemic failures. He emphasized the pressing need for gambling companies to establish effective policies that prioritize consumer protection and adhere to AML guidelines.
ProgressPlay’s Response and Future Directions
In light of the fine, ProgressPlay has acknowledged the issues raised and stated that the infractions pertain to outdated practices. To rectify past failures, the company has since enhanced its internal framework, now boasting a dedicated team for responsible gambling and AML compliance, supplemented by independent auditors.
"It’s not merely about fixing previous mistakes; we’ve allocated £1.5 million for player protection technologies and improved AML processes," said Itai Lowenstein, CEO of ProgressPlay. "This overhaul signifies a paradigm shift in how we engage with and support our customers."
Conclusion
The significant penalty against ProgressPlay serves as a stark reminder for the online gambling sector about the importance of compliance and ethical operations. As the industry evolves, operators must prioritize robust systems and proactive measures to foster a safer gambling environment. Through early adoption of stringent controls and responsible practices, companies can not only avoid penalties but also enhance trust and loyalty among their customers.