This fine comes after investigations focused on the period between October 2023 and February 2024.
UKGC issues fine over what it calls over-reliance on automation in AML and social responsibility
The main issue with Videoslots turned out to be the company’s decision to rely on automated processes that were not properly supervised by trained humans to determine whether players were experiencing harm associated with their gaming.
In the specific cases cited by the regulator, one player lost £5,000 over the course of a month, despite a £3,000 threshold. Another user lost as much in 24 hours, and a third ended up losing £7,500 within 18 days. More similar cases were identified by the regulator.
In terms of anti-money laundering processes and procedures, the UKGC took issue with a single customer who used digital vouchers to deposit £75,000 in 16 days. The player then gambled them, and any wins generated this way were sent to four different accounts in the UK. Some of those accounts were subsequently accessed outside of the country.
In this instance, Videoslots’ reliance on automated systems to flag such behavior proved inadequate. No questions were raised as to the player’s source of wealth, which is becoming an ever more important part of the regulated gambling experience.
Context matters, Videoslots’ boss insists
"Operators must review how open-loop payment systems such as prepaid digital vouchers are managed in a gambling environment because they are high risk and present operational challenges in terms of effective monitoring," UKGC Director of Enforcement John Pierce said, taking issue with this event.
Alexander Stevenhal, Videoslots CEO, insisted that clarifications to the public statements ought to be made. The cases that the UKGC identified and investigated were cases that Videoslots had also detected prior to the regulator stepping in and had taken proactive steps to resolve at the time.
Stevenhal insisted that any follow-up comments he offered on the case were meant to only establish a better and clearer line of communication between operators and regulators to help build a sustainable industry.
The UKGC has acknowledged that Videoslots provided the full requested documentation and collaborated with the regulator.
