UKGC fines Lottoland £ 760,000 for AML and responsible gambling deficiencies
EU Lotto, the operator of Lottoland’s UK-facing website, has been fined £ 760,000 by the UK Gambling Commission for a series of social responsibility and money laundering breaches.
The operator is also expected to undergo a thorough independent audit after the regulator spotted gaps in its responsible gambling and anti-money laundering controls.
EU Lotto has also received a formal warning for its failures which all occurred between October 2019 and November 2020.
Lottoland operator’s social responsibility violations included ignoring customers frequently changing their deposit limits as markers of harm and fail to conduct financial and affordability assessments to determine if a client has suffered or is at risk of being harmed.
The UK licensed operator was further reprimanded by the Gambling Commission for interactions with customers which consisted mainly of an email sent to players detailing the responsible gambling tools available without requiring a response from the customer.
The regulator said he could find little evidence of interactions with customers being appropriate to the extent of the potential harm.
Based in Gibraltar, Lottoland is an online gambling brand that is best known for offering online betting on the results of a number of international lottery draws.
The company is also penalized for AML deficiencies
As part of an investigation into the activities of Lottoland, the Gambling Commission also identified a series of shortcomings in the fight against money laundering by the online gambling brand, including the failure to effectively review and analyze bank statements provided by the players to prove the address.
In a post on its website announcing the latest sanction it issued, the UK regulator further noted that EU Lotto had not restricted customer accounts as a result of source of fund requests and that it allowed players to register other people’s debit cards to their account.
The operator was further reprimanded for “Rely too heavily on ineffective threshold triggers” failing to provide adequate information on how much a bettor should be allowed to gamble based on their income, wealth or any other risk factor.
On the EU lottery sanction, Gambling Commission Executive Director Helen Venn said the case, like other recent enforcement actions taken against offending operators , was the result of a planned compliance activity.
Ms. Venn added that all of their licensees “Must be well aware that we will not hesitate to take firm action against those who do not meet high standards we are waiting for consumers in Britain.
On their UK fine, Lottoland CEO Nigel Birrell said they are fully committed to ensuring the highest standards of compliance, including AML and social responsibility obligations , in all jurisdictions in which it operates.
Mr Birrell further explained that their sanction was linked to “Inheritance problems” around some of their compliance checks and that these issues have been resolved. He also noted that they have significantly increased their investments in compliance, have more than doubled their compliance workforce and have undertaken a host of initiatives such as third party support, improved training and the launch of ” a review of key policies.
Source: Regulatory action against EU Lotto, Gambling Commission Newsroom, 23 September 2021