UK Gambling Commission Orders Greentube to Pay $1.2M Over Compliance Failures

Online gaming operator Greentube Alderney Limited, trading as Admiral Casino, has been ordered to pay a $1.2 million (£1 million) settlement by the UK Gambling Commission (UKGC) after failing to meet social responsibility and anti-money laundering (AML) standards. This announcement underscores the Commission’s commitment to ensuring gambling operators adhere to strict compliance frameworks.

Settlement in Lieu of Penalty

The UKGC revealed that the settlement agreement was reached as an alternative to a financial penalty, with Greentube cooperating throughout the investigation. The operator accepted responsibility for its shortcomings early on, which related to its AdmiralCasino.co.uk platform.

The Commission found several breaches, with key issues highlighting Greentube’s failure to fully enforce its internal policies designed to protect customers and monitor transactions effectively.

Social Responsibility Failures: Gaps in Protecting Players

Greentube’s approach to social responsibility came under scrutiny for failing to identify signs of financial harm and customer vulnerability. Specific cases revealed lapses in monitoring customer activity and ensuring income sustainability.

1. Ignored Customer Red Flags
   One customer submitted a bank statement with a negative balance and evidence of frequent gambling transactions. Despite this, no action was taken until the customer deposited £4,000 over four months. The Commission criticised the delay, emphasising the importance of timely escalation.
2. Inadequate Verification of Income
   Greentube’s policies require customer limits to align with sustainable income. However, the operator allowed deposits based on irregular or one-off income without adequate checks.
3. Missed Indicators of Harm
   A lack of controls meant the company failed to identify and address behaviours indicative of gambling harm. The UKGC reiterated the operator’s responsibility to protect players, especially those showing signs of potential harm.

Anti-Money Laundering Failures: High-Risk Transactions Overlooked

The UKGC’s findings also highlighted weaknesses in Greentube’s anti-money laundering processes. These lapses included failing to scrutinise high-risk transactions and investigate potential links to criminal activity.

1. Delayed Scrutiny of Suspicious Transactions
   One customer presented a bank statement with over £100,000 in unusual transfers and a negative closing balance. Despite these red flags, the account was not reviewed for four months.
2. Recycled Winnings Mismanagement
   Greentube failed to enforce its recycled winnings policy. A customer deposited over £70,000 after a large win, using multiple payment methods, without providing source-of-funds documentation.
3. Failure to Address “Risky Occupations”
   Policies requiring heightened scrutiny for customers in high-risk occupations, such as finance management, were not consistently applied. One case revealed no measures were taken to mitigate risks associated with a finance manager’s activity.
4. Overlooked Linked Accounts
   Greentube did not flag connections between a player and another account held by a blocked customer with a criminal history. The shared address and surname should have triggered additional investigations.

Repeat Offences and Industry Implications

This is not the first time Greentube has faced regulatory action. In 2021, the operator paid £685,000 following an investigation into similar failings. The repeat nature of these breaches raises concerns about Greentube’s compliance culture and its ability to implement effective risk management systems.

Broader Impact on the Gambling Sector

The UKGC’s actions highlight the increasing pressure on operators to prioritise compliance. Failures such as those identified in this case have far-reaching implications, not just for affected customers but for the industry as a whole. Regulators worldwide are closely watching these developments, signalling that leniency for non-compliance is no longer an option.

What’s Next for Greentube?

In addition to the financial settlement, Greentube has committed to improving its systems and processes. The UKGC will continue to monitor the operator’s activities to ensure adherence to regulatory requirements. This case serves as a stark reminder to the industry that robust compliance is non-negotiable.