Star Racing, a renowned betting operator, is on the hook for a whopping $774,834 fine for its shortcomings in maintaining robust anti-money laundering (AML) practices and social responsibility standards. Furthermore, the operator, which also trades under the name Star Sports, will receive a stern warning alongside added restrictions to its license.
The operator's oversights in mitigating money laundering involved neglect in confirming the origins of hefty customer deposits and failing to adequately scrutinize this information when it was eventually gathered. These shortcomings were uncovered during the operator's compliance assessment.
On the front of social responsibility, Star Racing failed to demonstrate an understanding of the significance and effectiveness of customer interactions in reducing risk to customers. These issues spanned from March 2020 to May 2021.
Enforced actions include the issuance of a formal warning to Star Racing as per Section 117(1)(a) of the Act, and Licence Condition 12.1.2. This condition stipulates that operators based in foreign lands must comply with the 2017 Money Laundering, Terrorist Financing, and Transfer of Funds (Information of the Payer) Regulations.
Moreover, as per Social Responsibility Code Provision (SRCP) 3.4.1, paragraphs 1 and 2, licensees are obligated to engage with consumers in a way that minimizes the chance of gambling-related harm and heed the Commission's guidance on customer interactions.
In a related story, Videoslots faced a £2m ($2.5m) fine by the UK regulator in June for similar AML and social responsibility transgressions, agreeing to pay compensation to the Gambling Commission.