Technology company fined £600,000 over failure to manage betting websites

A London-based company that provides technology to run betting websites has been fined £600,000 for what the Gambling Commission called "blatant breaches" of the rules on money laundering and social responsibility.

In its wake, the Gambling Commission has warned such operators who manage third-party websites that they will face action if they do not oversee their "white label" partners carefully after the fine imposed on FSB Technology.

FSB will have to change the way it operates with additional licence conditions after an investigation by the regulator discovered it did not have sufficient oversight of three third-party websites - which the commission said have not been named for legal reasons - or effective anti-money money laundering and social responsibility policies and procedures in place between January 2017 and August 2019.

Failures included ineffective checks on a customer who showed signs of problem gambling and spent £282,000 over an 18-month period, sending a marketing email to 2,324 customers who had previously self-excluded and the placement of an "inappropriate banner advertisement containing cartoon nudity" on a British-facing website which was providing unauthorised access to copyrighted content.

Gambling Commission executive director Richard Watson said: "All operators should pay close attention to this case as it shows that we hold all licensees fully responsible for third-party relationships - and we will act against any of our licensees that do not manage third parties appropriately.

"These were blatant breaches of rules we have put in place to ensure gambling is fair, safe and crime-free."

The commission added that it was still reviewing the actions of personal management licence holders involved in the case.

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