The Gambling Commission fined Smarkets hundreds of thousands of dollars for violating anti-money laundering and social responsibility rules.
The operator, which prided itself on being different from its competitors, allowed customers to gamble without an adequate source of funds, checks being carried out, and failed to identify and interact with customers at risk of harm, according to the Commission.
Smarkets has received a formal warning and will be subject to an audit to make sure it can correctly implement its anti-money laundering and social responsibility procedures.
“Our investigation into Smarkets unearthed a variety of failures where customers were put at risk of gambling harm,” said Sarah Gardner, deputy CEO of the Commission.
The company’s failure to effectively implement its policies and controls contributed to the poor systems and processes that were in place.
The recent release of a TV advertisement online which was not approved for UK television by clearance body Clearcast, which said it would bring advertising into disrepute for its mocking and cynical nature, is the latest controversy for Smarkets.
Smarkets’ betting platform crashed on the opening day of the Cheltenham Festival, leaving customers unable to place bets throughout the day and leading to an apology from the operator.
The Gambling Commission recently handed out a fine to LeoVegas of over one million dollars for similar failures. Smarkets wants to be different, but this latest fine puts it in the same company as the operators it has recently criticized.
The Gambling Commission fined the UK-based online betting platform Smarkets for a number of anti-money laundering and social responsibility violations. The operator, which prided itself on being different from its competitors, allowed customers to gamble without an adequate source of funds, checks being carried out, and failed to identify and interact with customers at risk of harm, according to the Commission.