Genesis Global is sanctioned and fined by UK Gambling Commission
Online casino company Genesis Global has been found to have significant social responsibility and anti-money laundering failures resulting in a £3.8 million fine. The company which runs a total of 14 sites including casinocruise.com, casinoplanet.com, and genesiscasino.com has also been ordered to undertake extensive additional auditing. The company had its UK operating license suspended in July 2020 due to compliance issues. Its license was reinstated in October of the same year.
Gambling Commission issues £3.8 million fine. ©Mikhail Nilov/Pexels
A warning to all UK gambling companies
After the operator had its license reinstated when positive changes were witnessed by the regulator, the UKGC continued its investigations. It had particular concerns about the implementation of anti-money laundering compliance and the company’s overall social responsibility.
Helen Venn, Commission Executive Director has warned:
“All gambling businesses should pay very close attention to this case. The Commission will use all tools at its disposal to ensure consumer safety and that extends to stopping a business from actually operating. Failing to follow rules aimed at keeping gambling safe and crime-free will never be a viable business option for gambling businesses in Britain.”
The UK regulator is determined to ensure that the regulations that cover online gambling in the UK are adhered to by all license holders.
Genesis Failings
The enforcement action of suspension and the £3.8 million fine is a sign that the UKGC is determined to ensure consumer safety. The Commission found that Genesis Global was failing to do so and the following breaches were highlighted in its report.
Social Responsibility
One customer spent £245,000 in a three-month period. Genesis knew three days into their relationship that the customer was an NHS nurse earning £30,000 a year. Despite this, they did not place any effective restrictions on the account or carry out any meaningful responsible gambling interactions.
Another customer lost £197,000 over six months. Genesis failed to carry out affordability checks, according to the Commission. She closed her account as she said she wanted to spend more time with her family. She was then allowed to open another account the same day with an opening deposit of £200.
A third case highlighted a customer who lost £234,00 in six weeks and, again, Genesis did not carry out effective affordability checks or undertake any meaningful responsible gambling interactions.
Money Laundering
Genesis estimated that a customer was earning £110,000 a year because the customer said that they were a director of a company based in London. The figure was an assumed one as it was the average for a London director. However, the company was actually dormant and Genesis had failed to verify the information supplied by the customer which would substantiate the level of spending. They only asked for information regarding the source of funds after the customer had lost £209,000.
One customer provided Genesis with bank statements that showed deposits into the account of £23,000 and withdrawals of £27,000. Prior to providing this documentation, the customer had been able to deposit £1,300,000 and lose £600,000 before any checks were made to verify the source of the funds.
Another customer told Genesis that his money came from allowances from his parents who owned factories overseas, but they did not carry out the verification processes to confirm the assertions. All the customer had to do was to show bank statements but these did not clarify the source of the income. They did, however, evidence transactions with other gambling operatives. The customer was allowed to lose £107,000 over a six-month period but the source of the funds was never sufficiently checked.
The full report can be found on the Gambling Commission’s website. This is the third instance this month of the Gambling Commission handing out very large fines. Previously, the organization penalized Rank Digital Gaming and Annexio Ltd to the tune of £1.3 million for multiple social responsibility failures.
Gambling Whitepaper
Gambling legislation is under intense scrutiny in the UK at the moment with a white paper expected imminently which will update the 2005 gambling act. It is predicted that there will be restrictions on advertising and sponsorship and the possibility of ‘soft caps’ on deposits. However, the publication of the paper has been delayed the date for its release has not yet been confirmed.
Enforcement action by the Gambling Commission could increase pressure on regulators to toughen up the existing laws. One area that anti-gambling lobbyists are keen to see change is the maximum amount that can be deposited for online slots. In 2018 this amount was reduced from £100 to £2 at physical machines but this was not reflected in the online game. Pro gambling voices are concerned that any tougher regulations will simply push gamblers into unregulated markets where they will be vulnerable to rogue operators. They are calling for reforms to the UKGC which they claim has been imbibed with an overtly anti-gambling ideology and is actively seeking to get the industry.
