The UK Gambling Commission (UKGC) has issued a $5 million (£3.8 million) fine to Genesis Global after it uncovered breaches in both social responsibility and money laundering. The commission also warned the gambling industry that it will use all necessary tools to make sure that customer safety is kept at the highest level. This comes days after an all-parliamentary group issued a critical report of the commission, calling the regulator “too harsh” in regulating the industry.
Genesis’ License Was Also Suspended in 2020
Before the UKGC fined Genesis Global, it issued a warning to the brand and ordered it further extensive auditing. Genesis Global owns a total of 14 websites, including casinoplanet.com, genesiscasino.com, casinojoy.com, vegashero.com, and casinocruise.com.
The $5 million fine comes after the UKGC finished its 2-year investigation into the casino giant. Helen Venn, the executive director of the commission, stated that all gambling brands should take notes of the situation as the regulator will make sure that customers are safe.
Back in 2020, Genesis’ license was also suspended for money laundering and social failures, but the commission decided to lift the suspension three months later after it noted that the brand had significant compliance improvement. Although the UKGC has been criticized lately for being too harsh on the gambling industry, the case with Genesis is a bit different as it involved several compliance failures.
Money Laundering Cases and Social Failures Explained
In 2020, Genesis had three money laundering failures. One of those cases was a man who was allowed to deposit more than $1.7 million and eventually lose around $800,000. According to the documentation that the player provided Genesis with his bank deposits were valued at around $30,000 and cash withdrawals were valued at $36,000, which the UKGC stated is not enough to support the level of gambling that the customer had at the time.
A different case involved a customer, who was making around $150,000 annually in a firm in London. This player was asked for documentation to prove his fundings only after he lost around $280,000.
The third case involving money laundering was a customer who lost around $143,000 over six months and did not provide Genesis with proof of source funds. The brand was relying on the fact that the money came from the player’s parents who owned a few factories, but nevertheless, failed to verify these claims.
As for social responsibility failures, the first one included an NHS nurse who was making around $40,000 annually but managed to lose over $320,000 in just three months. Genesis failed to take the necessarily responsible gambling interactions.
Two additional cases of the same character were also cited as social responsibility failures. The first one involved a customer who lost over $260,000 over six months and after she closed her account to spend time with her family, she was allowed to open a different account and deposit around $260 to her account.
The second one was a failure to take the necessarily responsible gambling interactions with a customer who lost more than $310,000 in just six weeks. Genesis was also fined by the Spelinspektionen in Sweden for failing to comply with self-exclusion requirements, but its fines were recently reduced.