Spreadex Fined £2M for Repeated Gambling Compliance Failures

Spreadex Limited, a UK gambling company, must pay a $2.7 million (£2 million) fine for not following rules to prevent money laundering and keep players safe. The UK Gambling Commission investigated the company and found major problems in how it operated from September 2022 to November 2023.

In mid-2023, a routine check showed Spreadex wasn‘t doing enough to ensure safety. The company, which runs online casino games and sports betting, trusted customer-provided financial details without verifying them. For example, one new user deposited $85,310 (£64,000) soon after signing up. This large sum raised red flags, but Spreadex didn’t properly check where the money came from. That same user lost $66,648 (£50,000) in just one month, showing a lack of oversight.

The Gambling Commission also pointed out problems with how Spreadex handled players at risk. One customer hit a daily deposit cap of $4,452 (£3,340) on 12 days over two weeks. Instead of stepping in to check on the players well-being, Spreadex sent automated messages with no personal follow-up, missing a chance to help someone who might be struggling.

To fix these issues, Spreadex will face an outside review to check its anti-money laundering and player safety practices. This audit will make sure the company follows rules moving forward and avoids similar mistakes. The Commission stressed that gambling businesses need strong systems to protect players and keep the industry trustworthy.

This isn‘t Spreadex’s first run-in with regulators. In 2022, the company paid a $1.8 million (£1.36 million) penalty for similar failures, marking its second big violation in three years. Regulators are frustrated that Spreadex hasnt learned from past mistakes and warned that more slip-ups will bring tougher punishments.

John Pierce, who oversees enforcement at the Gambling Commission, said he was troubled by Spreadexs failure to act on warning signs. He criticized the company for relying too much on unverified customer information and not doing enough to support at-risk players. Pierce also urged better teamwork between the Gambling Commission and the Financial Conduct Authority to monitor activities in both gambling and financial trading.

The Gambling Commission‘s stance is firm: companies must have solid plans to spot and handle risks quickly. This fine puts pressure on Spreadex to improve its practices and show it can follow the rules. Regulators have made it clear that they won’t tolerate ongoing failures, and businesses that dont fix their problems will face harsher consequences.