UK Gambling Commission Fines B2B iGaming Operator ProgressPlay £1 Million
ProgressPlay was fined £1 million (US$1.35 million) by the UK Gambling Commission on Thursday for violating regulations.
ProgressPlay, which has its headquarters in Limassol, Cyprus, is licensed by the UK Gambling Commission to operate online casinos, online bingo games, and remote sports betting. Although the white label operator also runs its own online gambling platforms, ProgressPlay is primarily a business-to-business vendor of iGaming software.
According to the UKGC, a Gambling Commission compliance review revealed serious issues, including as deficiencies in social responsibility and anti-money laundering. This is the second time that ProgressPlay has been discovered to be noncompliant by such a check.
"This case marks the second time ProgressPlay Limited has been subject to enforcement action by the Gambling Commission. Its failure to meet AML obligations, along with the gaps identified in its social responsibility processes, are unacceptable,” said John Pierce, the UKGC’s director of enforcement and intelligence.
In addition to operating 18 online gaming domains, ProgressPlay is a third-party operator for over 100 additional UK-based businesses.
Aced Bet, Push Bet, Bet Steve, Lotto Zone, and UK Slots are some of ProgressPlay's online businesses. Funky Jackpot, Lucky Buck Bets, Hot Wins, and LuckyCity are some of the company's white label platforms.
AML Errors
The UKGC's assessment was extensive and concentrated on ProgressPlay's ongoing inability to deal with money laundering. The investigation found that the business failed to carry out suitable risk assessments for money laundering and terrorist financing (MLTF) and failed to put measures in place to reduce the risk of MLTF.
According to the UKGC, the iGaming company failed to take a "sufficiently risk-based approach" to anti-money laundering and frequently neglected to confirm customers' risk profile, business operations, and source of funds—all of which are mandated by UK online gambling regulations.
Regarding social responsibility, the UKGC assessment stated that ProgressPlay needs to make significant strides in tracking customer behavior, particularly in identifying possible gambling harm early on. Investigators discovered that ProgressPlay's customer service agents lacked the necessary training to engage and support potential problem gamblers, and the company had insufficient intervention protocols.
Alright, Evaluation
In addition to the seven-figure penalties, the UK Gambling Commission mandated an independent third-party audit as soon as ProgressPlay made the necessary adjustments to rectify its regulatory violations. ProgressPlay, which was chosen by the UKGC, is required to cover the cost of the audit.
"Operators should be in no doubt: repeated regulatory breaches will result in increasingly severe enforcement action. We urge all operators to examine the failings identified in this case and take proactive steps to strengthen their own systems and controls,” Pierce added.
Following a £175,718 settlement for comparable regulatory violations in May 2022, ProgressPlay was fined £1 million.
In 2023, William Hill was fined £19.2 million for AML and social responsibility violations, the highest fine ever imposed by the UKGC. Customers were permitted to make sizable payments and engage in substantial gambling for years without any interference from the online casino and sportsbook operator, according to the UKGC. Initiatives for socially conscious gaming around the UK received the majority of the £19.2 million.
