The UK Gambling Commission on Tuesday ordered Maple International Ventures, the operator of Lottomart.com, to pay £360,000 ($477,236) after identifying a series of anti-money laundering and social responsibility failings.
An investigation led by the Gambling Commission discovered several breaches of licence conditions. Maple was also found to have fallen foul of the Social Responsibility Code.
The Gambling Commission said that between June 2023 and July 2024 Maple’s risk assessment efforts were not up to scratch. It noted how several key risks were omitted from the assessment and that its policy was lacking in sufficient detail.
Setting out its findings, the regulator flagged failings within the Licence Conditions and Codes of Practice (LCCP) 12.1.1 (1). This refers to assessing the risks of a business being used for money laundering and terrorist financing.
Failings led to ‘significant’ player loss
Also of issue was LCCP 12.1.1(2), covering the policies, procedures and controls to prevent money laundering and terrorist financing. Between May and October 2024, the Gambling Ccommission said Maple had failed to ensure it had appropriate policies in place
The regulator noted controls for detecting and taking action regarding duplicate and linked accounts were not always effective.
It gave one example of how a user had evaded automated controls by switching the order of one of their first names and surname. Lottomart and Maple only identified the issue the following day after the player had already made “significant” deposits and losses.
Maple was also found in breach of LCCP 12.1.1(3), which also references AML and social responsibility policies. The commission said Maple failed to ensure policies and controls were implemented effectively.
The regulator noted a delay between a money laundering risk being identified and action being taken. In turn, this meant users could transact beyond some intended thresholds. Offering an example, customers whose identities had not been fully verified were able to continue transacting beyond the financial threshold set for customer due diligence checks.
However, there was no evidence of criminal spend or the acceptance of funds from people subject to financial sanctions.
Social responsibility failings at Lottomart.com
Meanwhile, the commission said Maple did not always ensure customer monitoring efforts were implemented effectively.
The regulator also took issue with SRCP 3.4.3 paragraph 4 on monitoring customer activity for potential gambling harm. Again, it said Maple’s processes were not always effective and flagged various “weaknesses” in its systems.
One example of this was a player being able to open a second account despite rules intended to prevent players from doing so. The same player then made “significant” deposits before their second account was identified.
Another failing was flagged in reference to SRCP 3.4.3 paragraph 5, which requires licensees to use indicators to identify harm. The regulator said Maple’s controls were “inadequate”, highlighting how some large wins were followed by high staking.
Finally, the Gambling Commission noted SRCP 3.4.3 paragraph 11 on acting on strong indicators of harm by implementing automated processes. It said Maple’s policies did not adequately define what it considered to be “strong” indicators, with no associated automated actions.
Maple faces payment despite acting on failings
Concluding its findings, the commission said Maple agreed to a £360,000 payment in lieu of a financial penalty, including a divestment of £50,000. The money will be divested to socially responsible purposes and to cover the costs of the investigation.
The Gambling Commission noted how Maple “swiftly” put in place an action plan designed to remedy the failings. It also co-operated fully with the investigation and accepted the failings at an early stage.
The regulator also confirmed that Maple was aware of certain issues with its systems prior to being contacted over the issue. However, an effective fix was only implemented after discussions held during the assessment. Ultimately, this led to the payment agreement.
“The cornerstone of every licensed business must be the proper implementation of effective policies and procedures aimed at making gambling crime free and safer,” said John Pierce, director of enforcement at the Gambling Commission.
“This operator is now being held to account for anti-money laundering and social responsibility failings uncovered during a compliance assessment.
“We would advise all operators to read the Maple International Ventures public statement and consider whether their own policies and procedures are both effective and are being successfully implemented.”
Maple International Ventures, which operates Lottomart.com, will pay £350,000 over the failings.