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The United Kingdom Gambling Commission has ordered Corbett Bookmakers to pay a fine of £686,070 following an investigation, which uncovered that the land-based bookmaker had violated several responsible gambling and anti-money laundering regulations.
In a press release published today (Mar 20), the regulator announced that the violations took place between February 2022 and May 2024. Corbett currently operates 36 betting shops across the UK, along with multiple betting premises in various race courses.
In addition to the penalty, the firm has also been ordered to carry out a third-party audit to ensure it is effectively implementing AML and safer gambling policies, procedures, and controls. This must be done before March 6 (A year after the official ruling).
Players Were Allowed to Gamble for Lengthy Durations and Lose Huge Sums
The Commission’s assessment conducted over two days, revealed alarming instances of social responsibility failures. One notable case involved a consumer who staked £23,674 within just 13 days, raising significant concerns about potential gambling harms.
Furthermore, the assessment found that Corbett failed to engage adequately with a customer during a four-hour betting session, where they placed 56 bets and lost £3,523. Another punter was allowed to stake up to £47,416 and incur a loss of £6,741 over a 10-week period without sufficient interaction or support from the bookmaker.
Gambling Commission Also Found Serious AML Oversights
It was also revealed that Corbett Bookmakers allowed customers to stake and lose substantial amounts without proper verification of their financial backgrounds. The investigation revealed that the license lacked adequate Know Your Customer (KYC) evidence, which is essential for ensuring the legitimacy of funds being accepted.
In one alarming instance, a bettor managed to wager nearly £47,000 and subsequently lose £14,000 over an eight-month span without any scrutiny regarding the source of those funds.
Moreover, the regulator’s findings indicated that Corbett’s risk assessment process for money laundering and terrorist financing was fundamentally flawed. The process failed to thoroughly evaluate a range of risks associated with their customer base, products, geographical reach, and payment methods.
In its ruling, the Gambling Commission highlighted several specific regulations that Corbett breached. These include paragraphs 1 and 2 of Licence Condition 12.1.1, which pertain to the prevention of money laundering and terrorist financing.
Additionally, the regulator flagged paragraphs 1a, 1b, 1c, and paragraph 2 of social responsibility code provision 3.4.1, all of which emphasize the importance of customer interaction.
Fine Will Serve as a Warning to Others
John Pierce, director of enforcement at the commission, warned other operators to consider the regulatory action taken against Corbett and ensure that their operations were fully up to the standard.
“Corbett has failed to adhere to vital regulations designed to make gambling safer and free from criminal activity,” he said. “As a result, it will not only pay a significant fine but also undergo a rigorous audit to ensure full compliance with anti-money laundering and safer gambling measures.”
The regulator also commended Corbett for their cooperation throughout the investigation and confirmed that the bookmaker had taken the right steps to correct its failings. However, Pierce emphasized the importance of the company adhering to the regulator’s recommendations ahead of the upcoming audit.
“In addition to remedial actions already taken, we expect the operator to swiftly and fully implement the audit recommendations, demonstrating clear and measurable improvements in both policy and practice,” he said. “Failure to do so will prompt our compliance team to reassess the situation and take further action as necessary.”
“All operators should carefully consider this case and the price this operator is now paying.”
Corbett follows Merkur as the second land-based operator to be fined by the regulator this year. Merkur received a £95,450 fine for social responsibility violations in February after failing to properly interact with a customer who lost £1,981 between 1 and 3 November 2023 at its Stockport premises.
Source: iGamingBusiness
