Reckless gambling, hefty penalties: Corbett Bookmakers in hot water
Sportsbook Facing Hefty £686,070 Penalty from UK Gambling Commission for Negligence in Anti-Money Laundering Practices
The UK Gambling Commission (UKGC) has slapped Corbett Bookmakers with a hefty £686,070 fine for breaching anti-money laundering (AML) and social responsibility regulations. The gambling operator's transgressions span from February 2022 to May 2024.
The UKGC publicly announced their disciplinary action against Corbett, which runs 36 retail sportsbooks across the UK, marking the second gambling law-related failure in two years for the company. In 2022, they were fined £216,000 for similar offences.
AML Fails: Unchecked high-risk transactions
In their statement, the UKGC highlighted some of Corbett's AML shortcomings. These included allowing customers to stake and lose significant amounts without proper Know Your Customer (KYC) evidence or verifying the source of funds. A gambler, for instance, wagered £47,000 and lost £14,000 over eight months without Corbett verifying the legitimacy of the funds.
Missed red flags: Social responsibility failings
The UKGC also accused Corbett of failing to flag consumers at risk of harm, such as a consumer who bet £23,674 over 13 days, and neglecting to address players who exhibited harmful gambling patterns, like losing £3,523 while placing 56 bets in four hours or betting £47,416 and losing £6,741 in ten weeks.
Corbett has now been ordered to undergo a third-party AML audit within 12 months of the UKGC ruling, and the operator's social responsibility shortcomings will be under tight scrutiny.
Global gambling landscape
Experts point to broader industry challenges, including unlicensed money services and the growing use of artificial intelligence and cryptocurrencies, making it increasingly difficult for gambling operators like Corbett to control and prevent money laundering and harmful gambling practices.
John Pierce, the UKGC's Director of Enforcement warns, "Any betting firm that fails to adhere to vital regulations designed to make gambling safer and free from criminal activity will face similar repercussions."
Recent penalties reflect increased regulatory scrutiny, with the UKGC zeroing in on emerging risks like AI-driven fraud and crypto-related laundering, urging operators to bolster staff training and verification processes.
- The UK Gambling Commission (UKGC) has penalized Corbett Bookmakers with a £686,070 fine for violating anti-money laundering (AML) and social responsibility regulations.
- This fine was imposed due to Corbett's transgressions that occurred from February 2022 to May 2024, making it the second gambling law-related failure in two years for the company.
- The UKGC singled out Corbett's AML shortcomings, such as allowing customers to gamble large sums without providing proper Know Your Customer (KYC) evidence or verifying the source of funds.
- The failure to identify high-risk transactions led to a gambler betting £47,000 and losing £14,000 over eight months without Corbett verifying the legitimacy of the funds.
- The UKGC also criticized Corbett for neglecting to identify consumers at risk of harm, like a consumer who placed bets totaling £23,674 over 13 days.
- Operators like Corbett are urged to bolster staff training and verification processes in light of emerging risks like AI-driven fraud and crypto-related laundering.
- Industry experts emphasize broader challenges, including the growing use of artificial intelligence and cryptocurrencies, which make it harder for gambling operators to maintain control and prevent money laundering and harmful gambling practices.
- John Pierce, the UKGC's Director of Enforcement, warns, "Any betting firm that fails to comply with essential regulations designed to make gambling safer and free from criminal activity will face similar penalties."
