An unnamed betting company could be in trouble in the UK after mistakenly submitting documents to the Gambling Commission (UKGC) that indicate it may be running illegal offshore betting.
The Gambling Commission has reportedly demanded that the bookmaker hand over extensive financial evidence after suspicions were raised from documents previously submitted by the company.
The Guardian reported that the company had mistakenly submitted documents showing it was doing business in offshore territories. Details were allegedly written in white text on a white background, but were spotted by staff at the UKGC.
Based on the evidence, the Commission believes the bookmaker has been directing some of its high-rolling “VIP” customers to offshore partners. Any finding of involvement in offshore betting could have serious repercussions for the company and result in financial penalties, criminal prosecutions, and potentially losing its gambling license.
“If you’re offshoring VIPs, your licence is toast,” said one industry source. In a sign that the company may have been caught off guard, it has contacted its lawyers rather than explaining its position to the Commission.
When contacted by CasinoBeats, a Commission spokesperson replied, “We do not talk about individual cases. This includes neither confirming nor denying whether any investigation exists.”
UKGC Clamps Down on VIP Programs
In 2019, Gambling Commission data revealed that approximately 8% of customers were classified as VIPs, yet they accounted for up to 50% of deposits at some operators.
In response, the regulator introduced new rules on VIP schemes in 2020, including strict eligibility checks, senior management oversight, and restrictions on incentives. Companies are required to check for any signs of problem gambling, including time spent, frequency, chasing losses, or self-exclusion.
A report published earlier this year found that the regulations are having the desired effect. The key findings of the report stated that, “There is no growth in the number of customers enrolled in High Value Customers (HVC) or VIP schemes between 2021 and 2022 and 2023 and 2024; the number of customers on average remains at a much lower level than the pre-policy position.”
As part of the new rules, the UKGC can issue unlimited fines to operators that violate the regulations. Last month, the Commission issued a £10 million ($13 million) fine to Platinum Gaming, which operates Unibet, for failures to protect several customers.
In addition, the Commission fined ProgressPlay £1 million for similar social responsibility and anti-money laundering (AML) failures in August. If the company in question is deemed to be sending users offshore as a way of avoiding these social responsibility and AML regulations, it could face stronger penalties.
Illegal Online Gambling a Concern
Last week, the Commission published the final part in a four-part series investigating the size of the illegal gambling market. During its investigations, it found:
- Consumer motivations to use illegal sites are varied — there is no single driver of engagement
- Some consumers are unaware that they are gambling illegally, highlighting the need for greater public awareness
- Not all activity in the illegal market represents a direct loss to the regulated sector, as some consumers are self-excluded or otherwise unable to gamble legally
- There is currently no evidence of sustained growth in engagement with illegal websites where data has been collected
- A range of disruption and enforcement tactics are being deployed, supported by cross-industry and international collaboration
It concluded that, “we are not yet in a position to make a robust and reliable estimate of the size of this market.” However, it noted that it views the black market as a serious threat and calls upon regulated companies to assist in mitigating the danger posed.
CEO Andrew Rhodes stated, “Illegal online gambling remains a serious threat to consumers and to the integrity of the regulated market.” As the UK considers plans to raise gambling taxes in its budget this month, licensed operators have claimed this will drive users to illegal platforms.
It would be ironic if one of the same companies using this argument is found to be secretly funneling VIP customers to offshore sites. The former CEO of Entain, Kenny Alexander, is facing criminal charges over running an illegal gambling operation in Turkey. A similar scheme in this case may lead to further criminal prosecutions.
The post Betting Company Under Investigation By UKGC After Mistakenly Revealing Illegal Offshore Operations appeared first on CasinoBeats.
An unnamed betting company could be in trouble in the UK after mistakenly submitting documents to the Gambling Commission (UKGC) that indicate it may be running illegal offshore betting. The Gambling Commission has reportedly demanded that the bookmaker hand over extensive financial evidence after suspicions were raised from documents previously submitted by the company. The Guardian reported
The post Betting Company Under Investigation By UKGC After Mistakenly Revealing Illegal Offshore Operations appeared first on CasinoBeats.