The GB Gambling Commission has fined Star Racing Limited for failing to follow a series of anti-money laundering (AML) and social responsibilities.
Star Racing, traded as Star Sports, will pay a penalty of £594,000 (€693,376/$772,840). A formal warning was also issued, adding additional terms to the license.
In explaining the charges, the commission listed a number of deficiencies that occurred between March 2020 and May 2021.
Failures of AML include policies, procedures and controls that were ineffective at the time. It was also possible for Star Racing to deposit large sums of money before customers obtained source information, or to neglect analysis when source information was obtained.
Social responsibility failures include not understanding the impact and effectiveness of customer interactions in terms of minimizing customer risk.
license violation
The specific violations pointed out in this lawsuit included Sections 2 and 3 of License Condition 12.1.1, “Anti-Money Laundering.” This includes preventing money laundering and terrorist financing.
The committee also flagged license condition 12.1.2. This requires businesses based in foreign jurisdictions to comply with the Money Laundering, Terrorist Financing and Transfers Regulations 2017.
Additionally, Star Racing was found to have violated Social Responsibility Code Clause (SRCP) 3.4.1. This requires licensees to interact with their customers to minimize the risk of gambling-related harm.
In line with the European Commission’s policy statement on licensing, compliance and enforcement, the regulator settled with fines and warnings.
Additionally, additional license terms require Star Racing to conduct risk-based due diligence on third parties with whom it does business.
