The UK Gambling Commission has ordered LeoVegas to pay a fine of £1.3m (€1.6m/$1.6m) after identifying a string of missteps. A lot of it is related to setting the trigger too high.
After reviewing the licenses of online gambling operators, the Commission found that between October 2019 and October 2020, LeoVegas violated a number of license terms.
Analyzing some of the violations, the regulator found that social responsibility failures included LeoVegas setting spending triggers significantly higher than the average customer’s spending for customer reviews of its safer gambling team. However, there is no explanation as to how this was appropriate.
It was also discovered that the operator had set a point that imposed a 45-minute cool-off period on customers for six hours of play without explaining why.
Not only are the triggers set too high, but LeoVegas also has its own set of customer interactions that have declined deposits, canceled withdrawals, or had long gaming sessions or gambling sessions that took place late at night or early in the morning. Nor could it act on its policy, the committee said.Morning
Additionally, the commission said LeoVegas did not fully consider customer interaction guidance issued by regulators in 2019.
AML failures included setting the anti-money laundering review financial trigger too high.
The committee said LeoVegas also “relied too heavily on ineffective threshold triggers and insufficient information” to determine how much players could spend.
Regulators also said LeoVegas had inadequate controls to stop players who knew little about spending large sums of money in a short period of time.
Specific rule violations included paragraphs 2 and 3 of License Terms 12.1.1 regarding Anti-Money Laundering. This relates to the prevention of money laundering and terrorist financing, as well as he relates to paragraph 1 of the License Terms 12.1.2 relating to AML.
LeoVegas has also been found not to comply with paragraphs 1(a), 1(b) and 2 of the Socially Responsible Code of Conduct (SRCP) 3.4.1 with respect to its interactions with customers.
Furthermore, the European Commission said that LeoVegas has not complied with SRCP 3.9.1 with respect to customer identification and has not acted in accordance with Ordinary Code Provision (OCP) 2.1.1 with respect to AML.
LeoVegas, which operates LeoVegas.com, Slotboss.co.uk, Pinkcasino.co.uk, Betuk.com and 21.co.uk, has also received official warnings and is effectively enforcing AML and social responsibility audited to ensure that Policies, Procedures and Administration.
The regulator noted that LeoVegas cooperated with the Commission throughout its investigation and took appropriate corrective actions to address the deficiencies identified.
“We have identified this through our intensive compliance efforts. said Leanne Oxley, the association’s executive and information director.
“This case is yet another example of operators failing to protect their customers and address the risk of money laundering within their businesses.”
LeoVegas could soon be acquired by land-based giant MGM Resorts after LeoVegas’ board of directors unanimously recommended that shareholders approve a takeover offer from MGM. MGM will pay SEK61 (£4.90/€5.85/$6.16) per share to acquire all of LeoVegas’ share capital. MGM said it will fund the transaction through existing cash reserves.
However, one month after the proposal was announced, the Swedish Economic Crime Agency launched a preliminary investigation into alleged insider trading of LeoVegas shares in connection with the deal.
