NetBet is to pay £650,000 and undergo an independent audit after a Commission investigation revealed anti-money laundering and social responsibility failures. 

NetBet Enterprises Limited – which runs netbet.co.uk – will pay the money as part of a settlement with the Commission.

All £650,000 will go to socially responsible causes.

Anti-money laundering failures included:

• the licensee was over reliant on financial triggers, with examples of customers being able to spend disproportionally to their net income 
• there were examples of significant gambling activity taking place, where concerning behaviours were demonstrated by customers, however the operator still considered them low risk
• the licensee’s money laundering and terrorist financing risk assessment omitted some key risks, including the management of third-party business relationships, high stakes gambling and controls relating to third-country nationals residing in the UK.

Social responsibility failures included:

• not implementing effective customer interaction systems and processes in a way which minimised the risk of customers experiencing harms associated with gambling
• indicators of harm – such as overnight play, velocity of deposits/exhausting limits and escalated gameplay – were not identified in a timely manner and were often only identified once a manual review had taken place.

The operator also submitted inaccurate information when filing their regulatory returns.

John Pierce, Commission 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.

“The operator was instructed to take immediate action and make significant improvements to its systems and controls. This included strengthening their risk assessments, improving how they identify and respond to indicators of harm, and ensuring the accuracy of the data they report to us.

“Alongside the £650,000 financial penalty, the operator is also required to commission an independent audit of its policies, procedures, and controls to ensure the necessary improvements they have implemented are properly embedded and remain effective in practice. 

“Our focus is on ensuring operators meet the standards we expect, and where they fall short, we will intervene.”