In September 2021, the regulator launched a thorough evaluation of Blue Star Planet Limited, the company behind the 10Bet brand, after an investigation uncovered that the operator had several substantial problems with anti-money laundering (AML) policies and responsible gambling. 10Bet has taken steps to remedy these shortcomings, which is why the UKGC agreed to a settlement instead of a fine.
AML and Safe Gambling Measures Were Ineffective
According to the UKGC’s public statement, Blue Star Planet Limited was responsible for several egregious license breaches between November 2019 and June 2021. An investigation and subsequent section 116 regulatory review found failings in the operator’s processes aimed at preventing Money Laundering and protecting vulnerable people. Commissioners also uncovered weaknesses in its reporting arrangements, which was a substantial aggravating factor.
Blue Star has accepted the UKGC’s findings and acknowledged its shortcomings. The company agrees that its measures to limit customer deposits and prevent overspending were too relaxed. AML risk alert limits were also too high to be effective, and many clients managed to deposit significant amounts before any risk profiling occurred. The regulator also noted that the automated restrictions meant to limit high-velocity gambling were largely inefficient.
The Regulator Urged Other Operators to Take Notice
The UKGC’s report listed several aggravating and mitigating factors which informed their final verdict. It stated that the breaches were serious and directly impacted licensing objectives. The operator’s shortcomings also likely affected clients outside the scope of the investigation. According to the Commission, Blue Star’s senior management should have been aware of these issues but did nothing to remedy them.
However, the regulator noted that 10Bet took extensive steps to mitigate the issues, recognized its failings early, and cooperated with the Commission, promoting a more lenient verdict. The UKGC claims this case should serve as an example for the wider industry and urged other operators to review their compliance procedures.
Gambling operators should take account of the failings identified in this investigation.
UKGC official statement regarding Blue Star Planet Limited
Despite the severity of the violations, 10Bet managed to get away relatively scot-free. The operator must pay £620,000, which will go towards socially responsible causes. An additional £3,571.25 will be necessary to cover the Commission’s expenses regarding the case, and Blue Star must consent to the publication of the case details.
Overall, the UK regulator has had a busy start to the new year. The Commission already fined three other operators for similar violations. Vbet and TonyBet received relatively minor punishments, while Touch Games got slapped with a hefty $7.5 million (£6.1 million) fine due to its continuous failings. Such sanctions may seem heavy-handed, but a proactive and potent regulator is necessary for a healthy gaming ecosystem.