The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a CA$70,000 ($52,000) fine on MGE Niagara Entertainment Inc., the operator of Fallsview Casino Resort in Niagara Falls. This punishment aligns with AGCO’s increased scrutiny in recent months as the regulator strengthens its enforcement policy. Fallsview Casino announced it would appeal the fine, likely heralding a more in-depth review of the case.

A Patron Engaged in Highly Suspicious Activity

AGCO’s latest news release stated that the incident occurred in April 2023 when a patron visited the Salon Privé, a high-limit gaming area within Fallsview Casino Resort known for offering sophistication and discretion. The patron reportedly handed CA$80,000 ($60,000) in strapped CA$100 bills, carried in a reusable grocery bag, to a casino attendant.

Surveillance footage revealed that after the money was counted and confirmed, the patron left the table with casino chips without engaging in any gambling activity at that time. Notably, the AGCO stated that the identified patron was previously flagged as “high risk” by the casino. However, employees took no measures to inform officials or on-site police as per standard protocols.

The AGCO further highlighted that Fallsview Casino failed to take meaningful steps to verify the source of the patron’s funds, a requirement under the Registrar’s Standards for Gaming’s anti-money laundering rules. The lack of action constitutes a substantial violation of AML guidelines and safe gambling requirements, justifying the steep CA$70,000 fine.

The Casino Is Determined to Appeal These Accusations

In response to the fine, a spokesperson for Fallsview Casino expressed disagreement, asserting the venue’s commitment to compliance and ethical conduct. Registered operators can contest such decisions and bring their case before the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

“Fallsview Casino Resort is a company devoted to compliance and good citizenship. We will be appealing the decision and look forward to presenting our case.”

Fallsview Casino statement

This newest fine reflects AGCO’s continued vigilance and determination to ensure a safe and sustainable gambling sector. The authority has been very proactive recently, pursuing even high-profile operators such as PointsBet for responsible gaming breaches. AGCO noted it maintained close communication with operators, ensuring they adhered to its rigorous standards.

The CA$70,000 fine, CA$10,000 less than the alleged laundered amount, signals the regulatory authority’s uncompromising stance on adherence to anti-money laundering regulations within the province’s gambling establishments. Fallsview Casino’s decision to appeal should hopefully shed more light on the case, revealing whether the establishment failed its AML responsibilities.

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The social media giant Meta, owner of Facebook and Instagram, was fined by the Italian Communications Regulatory Authority (AGCOM). The company has to pay a fine of €5.85 million for violating the country’s laws about gambling advertising.

Fine for betting and gaming ads

The country decided to issue a fine to the industry giant, which is clearly a huge escalation when it comes to conducting the laws and regulatory actions issued by the state recently.

The AGCOM found various betting and gaming promotional content advertised on 13 Facebook profiles and five Instagram ones, 18 in total. Since both Facebook and Instagram are owned by the same company, Meta, the company got fined.

But that’s not all – further investigation revealed 32 visual posts, both video and images, that advertised betting and gaming activities. Since Meta provides various advertising services and it isn’t just the platform to display your own content, it is responsible for the violation.

AGCOM stated that the company is aware of the fact that betting and gambling ads are illegal, but despite that it approved the problematic ads.

In total, 18 accounts are flagged, but according to AGCOM, Meta is responsible for only five of them. After the AGCOM flagged the problematic ads, the company took measures to stop advertising and correct the issue. Also, after the regulator flagged the account, Meta blocked 11 of them.

But all those steps weren’t enough – the company had to pay a fine anyway. Apart from the penalty, Meta received an official notice and a take-down order for all ads in question.

Strict rules

Italy has strict rules when it comes to the regulation of problem gambling and gambling addiction. Back in July 2018, the state issued a Dignity Decree, a decree that helped prevent and resolve the issues related to the matter, and Meta violated that decree.

According to the document, all forms of betting and gambling ads are prohibited on both social media and other mediums, such as sports team jerseys, stadiums, and other media platforms.

Meta isn’t the only company that recently got fined because of betting and gaming ads. Both YouTube and Twitch got fined this month. AGCOM issued a fine of €2.5 million to YouTube, and Twitch had to pay €900.000 for similar violations.

The European Gaming and Betting Association (EGBA) disagrees with Italy’s strict rules since it can drive the companies into the rapidly growing offshore market.

Source: Hogg, Lea, “Meta fined by Italian Regulatory Authority for gambling ad violation”. SiGMA. January 2, 2024.

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Malta’s Financial Intelligence Analysis Unit (FIAU) has slapped a hefty fine of €222,736 ($244,085) on Trannel International Limited, a subsidiary of the Kindred Group, for significant lapses in compliance with regulatory standards. 

FIAU Exposes Trannel’s Risk Analysis Shortcomings with Critical Compliance Deficiencies

The FIAU’s investigation revealed that Trannel had failed to conduct proper risk analyses for a substantial number of clients whose deposits exceeded €2,000, as mandated by law. Critical deficiencies in Trannel’s CRA methodology were identified, with a lack of a system to connect multiple customer accounts, reported Television Malta’s TVM News. Each account was assessed independently, disregarding the broader context of a customer’s overall activity.

In a proactive response to the compliance examination, Trannel rectified the deficiency by implementing an automated risk assessment model tied to account registration. Despite these corrective actions, the FIAU emphasized the gravity of the lapses in Trannel’s compliance measures.

The regulatory body highlighted instances where Trannel’s risk assessment heavily favored transaction risk over other crucial pillars such as customer and geographical risk. Inappropriately rated profiles accounted for 40% of the reviewed player profiles, neglecting factors like deposit amounts, transaction speed, and payment methods.

High-Value Player Profiles Unveil Trannel’s Inadequate Scrutiny of Financial Red Flags

Two specific player profiles drew attention due to Trannel’s failure to scrutinize transactions adequately. In one case, a player deposited €3.5 million ($3.8 million) within 18 months, engaging in non-closed loop transactions with discrepancies in declared income. 

The second case involved deposits exceeding €350,000 ($383,548) in three months, questionable income sources, and third-party e-wallet transactions. Trannel neglected to gather essential information to substantiate these players’ financial activities.

Furthermore, Trannel fell short in fulfilling record-keeping obligations, with 70% of player profiles lacking necessary documentation from open-source intelligence obtained from the internet. 

Malta is not the only jurisdiction where Trannel has been experiencing challenges. In June, Norwegian gambling authorities received legal affirmation as the Borgarting Court of Appeal rejected Trannel International Limited’s appeal against a compulsory fine of NOK 1.2 million ($108,600) per day. 

The legal dispute began in 2019 when Norway’s gambling regulator, Lotteritilsynet, urged Trannel to cease operations in the country, leading to rejected appeals, a suspension, and subsequent fines, with the recent court decision signaling the end of Trannel’s legal battles in Norway. 

Culture and Equality Minister Anette Trettebergstuen noted that the court’s ruling aligns with the Norwegian exclusive rights model, while Atle Hamar, director of Lotteritilsynet, anticipates Trannel’s complete withdrawal from the Norwegian market.

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Singapore’s Gambling Regulatory Authority (GRA) announced that it has penalized Resorts World Sentosa (RWS) over due diligence failures. According to the authority, the casino failed to perform the checks outlined in the Casino Control Act 2006 (CCA) and the Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009 (PMLTF Regulations).

Back in 2020, the GRA asked RWS to review the activities of some of its customers. As a result, the operator recorded instances of non-compliance, prompting further investigation by the GRA. The regulator eventually discovered that between December 2016 and December 2019, RWS committed multiple due diligence failures.

The GRA learned that RWS’s employees did not perform checks for certain transactions of over 5,000 Singaporean dollars and did not establish the identity of the third-party depositors, thus violating the PMLTF Regulations.

As a result of its serious violations, the casino resort was handed an S$2.25 million fine (roughly $1.67 million in USD). The GRA has also canceled the special employee license of one of the employees involved in the breaches. The authority is still conducting investigations to determine the culpability of the other special employees involved in the violations.

RWS Will Try to Do Better

The GRA reported that RWS had a PMLTF framework and controls in place. Despite that, systematic failures in certain controls prevented the company from detecting some of the instances of non-compliance.

The authority pointed out that RWS took immediate action to address the non-compliances once they were detected. The regulator also noted that RWS engaged an independent party to review its standard operating procedures. In the meantime, the casino resort has undertaken a review of its corporate culture, aiming to reinforce its internal controls and corporate governance.

The GRA concluded that RWS’s violations are very serious. It reminded operators that it will not hesitate to take disciplinary action against errant casino companies and will continue to exercise “tight supervision” over their compliance matters.

This is in line with Singapore’s recent plans for reinforcing its regulations. In November, the country, which already has strict regulations on gambling, considered stringent cryptocurrency regulations.

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The Netherlands’ gambling regulator, Kansspelautoriteit (KSA), has slammed another operator with a hefty fine. The recipient of the fine is Betent, which operates in the country under the Betcity brand.

According to the announcement, Betent will have to pay EUR 3 million (roughly $3.27 million) for its violations of the Dutch regulations on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF).

Betent Failed to Comply

Known as WWFT, the Netherlands’ AML and CTF law requires gambling licensees to monitor their customer’s activity and report suspicious transactions to the Dutch Financial Intelligence Unit (FIU). To that end, operators must employ robust know-your-customer (KYC) measures, check their clients’ risk profiles and make sure that their operations do not facilitate money laundering or the financing of terrorism.

As it turns out, Betent’s AML and CTF measures were lacking. While the KSA warned the operator to properly conduct these investigations back in September 2022, Betent failed to properly fulfill its obligations.

The KSA later investigated Betent’s business again, only to find out that the violations persisted. In many cases, the regulator reported, Betent either did not conduct investigations or started them too late. In addition, the company was lax in requesting sources of income from its customers. The KSA also pointed out that, in many cases, Betent did not report unusual transactions to the FIU.

Because of the seriousness of these violations, the KSA opted to hand Betent a significant fine of EUR 3 million.

Jansen: Licensees Were Warned

René Jansen, the chairman of the Kansspelautoriteit, commented on the matter, pointing out that in May 2022, the authority issued a broad warning to licensed gambling companies. Back then, the regulator asked all licensees to get their WWFT affairs in order and warned that incompliant companies risk fines.

We then indicated that if research shows that providers are underperforming in the field of the WWFT, sanctions will be imposed. We are now following up on this. We are now really out of the start-up phase of the market, and that also means that there are no more excuses for some things.

René Jansen, chairman, KSA

Speaking of Jansen, the KSA chair is set to depart from the authority next year. The regulator is already on the lookout for a suitable replacement.

In the meantime, the KSA just unveiled subsidies for six gambling harm prevention research programs.

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Currently, there are strict rules when it comes to regulating gambling in Ontario, Canada. The province’s gambling regulator, the Alcohol and Gaming Commission of Ontario (AGCO), constantly monitors the sector to ensure that licensed operators adhere to the established rules. Ultimately, established regulations in the province seek to safeguard the consumers from excessive gambling, prevent and support users that might be affected by the activity.

On Thursday, the AGCO revealed that its Registrar issued a notice of monetary penalty against the online gambling operator PointsBet. The CA$150,000 ($108,600) penalty comes after the Commission alleged that the operator breached several responsible gambling provisions by letting one customer spend more than CA$500,000 ($361,900) over a period of three months.

In light of the notice of monetary penalty, PointsBet can appeal the decision with the License Appeal Tribunal, which is an adjudicative tribunal separate from the gambling watchdog.

“In Ontario, iGaming operators have an obligation to proactively monitor their patrons’ play for signs of high-risk gambling, and to take appropriate actions to intervene and reduce the potential for gambling related harms.“

Dr. Karin Schnarr, CEO and Registrar at AGCO

Dr. Karin Schnarr, AGCO’s CEO and Registrar, revealed that licensed gambling operators in the province are required to monitor the activities of their customers and prevent excessive gambling. She added that licensees are obligated to take action and reduce gambling harm or at-risk behaviors. “The AGCO will continue to focus on player protection by holding all registered operators to these high standards,” said Schnarr in conclusion.

Recently, the AGCO announced a CA$80,000 ($59,000) monetary penalty against Toronto’s Woodbine Casino. Back in September, the regulator cited an investigation that uncovered insufficient controls at the venue against cheating and collusion between employees and visitors.

The Gambling Regulator Explains the Alleged Breaches

Describing the alleged breaches, the AGCO claimed that PointsBet failed to provide assistance and properly intervene with a player who potentially was experiencing gambling harm. The Commission said that the user was able to lose more than CA$500,000 ($361,900) over three months which is why they were flagged as “high-risk,” by the gambling operator. Additionally, the same customer that kept incurring significant losses also made multiple withdrawal cancellations.

In addition to those warning signs, the AGCO alleged that PointsBet failed to enforce a mandatory 24-hour cooling-off period once the player canceled their deposit limit. Moreover, the regulator alleged the operator engaged in direct advertising without the player’s consent, offering credits, bonuses and inducements.

In light of the alleged deficiencies, the AGCO also claimed that PointsBet failed to ensure proper training for its employees on how to deal with customers who may be experiencing problem gambling. The regulator claimed that the operator failed to properly inform its employees of the importance of responsible gambling.

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Videoslots, the famous international online casino brand, has received a fine worth 9 million Swedish Crowns over breaches of anti-money laundering (AML) laws and regulations regarding the financing of terrorism.

The sum of 9 million Swedish Crowns would roughly convert into around 800,000 U.S. dollars or 760,000 euros. Spelinspektionen, the Swedish gaming authority, conducted an investigation into the operations of Videoslots and found that the operator has not met customer knowledge requirements.

Along with the fine Videoslots also received a warning from Spelinspektionen but for now the online casino operator was allowed to keep its license and continue to operate on the Swedish market. The operator also holds licenses in Malta, Great Britain, Denmark, Italy, and Spain.

The investigation conducted by Spelinspektionen found that Videoslots had faulty anti-money laundering protocols in place when dealing with ten of its largest customers between 2019 and 2021. The ten customers were selected at random from those who made the largest number of deposits and also deposited the biggest total amounts.

Obvious Discrepancies Between Income and Deposits

Spelinspektionen went on to study the operator’s actions concerning the ten large customers and eventually found a failure to account for obvious discrepancies between their income and their gambling transactions.

For example, one of the respective customers deposited more than 5 million Swedish Crowns between 2019 and 2021 despite having registered an income of just 57,000 Swedish Crowns in 2018. The discrepancies did not prevent the respective player from depositing and withdrawing large sums of money at Videoslots even though the initial risk was observed.

The online casino operator defended itself by saying that the audited customers do not necessarily represent the level of compliance of the entire operation and also that the final purpose of the anti-money laundering protocols is to report suspicious activity to the authorities. To that defense Spelinspektionen responded that the operator has a duty to detect and deter suspicious activity itself before reporting it to the authorities.

Moreover, the Swedish gaming authority also noted that while Videoslots was formally cooperative it was not willing to actively facilitate the investigation. The decision published by Spelinspektionen concluded: “The Authority’s assessment is that Videoslots’ customer knowledge regarding all of the audited customers has been insufficient. Videoslots would therefore not have maintained the business relationship or performed individual transactions regarding these customers.”

Source: “Videoslots punished in Sweden over “serious” AML failures“. iGaming Business. November 2, 2023.

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Sweden’s gambling regulator, the Spelinspektionen, has issued a penalty fee to Videoslots. According to the authority, the gambling operator failed to properly measure risk and committed anti-money laundering (AML) and counter-terrorist financing (CTF) violations.

For reference, Videoslots is a licensed operator that offers gambling in Sweden through its videoslots.com website.

As noted by the Spelinspektionen, the authority began supervising the operator’s AML protocols back in 2021 as it wanted to confirm whether the company secured sufficient knowledge of its customers. However, the review uncovered failings, confirming the regulators’ suspicions that Videoslots doesn’t properly assess its customers’ risk profiles.

The violations committed by Videoslots are considered to be very serious, the Spelinspektionen noted. According to the regulator, Videoslots has now received a warning and a penalty fee of SEK 9 million (approximately $809,300) for its breaches, which may have facilitated money laundering and terrorism financing.

This is one of the bigger fines handed by the Spelinspektionen, which noted that the maximum possible fine, as outlined in the Money Laundering Act, is EUR 1 million (approximately $1.06 million).

Sweden Is Stepping Up Its Efforts to Combat Illegal Gambling

In other news, the Spelinspektionen just published a partial report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling. The two regulatory bodies are currently evaluating how their efforts can benefit Sweden’s online gambling market.

As a result, the Spelinspektionen and the Finansinspektionen are exploring synergies and opportunities for payment blocking. The two regulators are also exploring opportunities for data sharing that will enhance their efforts.

An earlier proposal suggested allocating more money to the two authorities, helping them in their respective tasks. The proposal sought to allocate SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and SEK 4.5 million ($400,000) to the Finansinspektionen in 2024.

Over a month ago, Sweden proposed changes to its Money Laundering Act. Back then, the Spelinspektionen expressed its approval for most of the proposed changes but highlighted a few things that could be better.  The Swedish Trade Association for Online Gambling (BOS) also addressed the changes and similarly agreed with most of them but outlined a number of things to keep in mind.

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The Netherlands’ gaming authority, Kansspelautoriteit (KSA), continues its vigilant watch over the Dutch market. In one of its latest announcements, the regulator revealed that it has imposed a fine of EUR 2,074,000 (around $2,180,000) on the gambling operator LCS Limited.

According to the KSA, LCS offered gambling illegally, targeting local customers through its www.sonsofslots.com brand. Citing this as a violation of the Netherlands’ Gambling Act, the regulator noted that this is not the first time LCS has received a penalty.

In August 2022, the KSA handed a EUR 165,000 fine to the gambling company, asking it to immediately cease its unauthorized operations and leave the Dutch market.

The current fine is in line with the KSA’s current fine policy, which takes over a number of factors, including gambling operators’ local turnover.

Jansen Says Operators Aren’t Safe Just Because They Have Gone Dark

The Kansspelautoriteit’s chairman, René Jansen, commented on the new fine, highlighting the usual efficiency of such measures. However, he noted that some unlicensed operators are not safe when they “go dark,” warning that companies’ past violations can also be punished.

Jensen added that the KSA would regularly check whether unlicensed operators have truly ceased their unregulated activities. The regulator’s job is to diligently make sure that such services aren’t re-introduced.

The Kansspelautoriteit’s announcement reminded gambling companies that only companies with a license from the regulator are allowed to offer gambling in the Netherlands. The authority also reminded companies that they must follow the safer gambling protocols outlined by the KSA and make sure that their players are protected from gambling harm.

KSA Report Outlined the State of Gambling in the Country

In other news, the KSA just published its latest industry report, outlining the state of the gambling industry in the Netherlands. The regulator reported that growth is slowing down as the local market levels off.

At the time, the regulator announced that there are around 676,000 active players in the country, two-thirds of which gamble at least once a month. The total number of players and active accounts has more or less remained stable during the last few months.

In addition, the KSA’s efforts to crack down on unlicensed gambling and channel players toward licensed operators have been paying off as attested by the latest figures. According to the report, the KSA has successfully channeled a stellar 93% of players toward licensed operators, in line with its goal of having 8 in 10 players gamble legally.

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Greek gambling operator OPAP was recently accused of violating Greece and the European Union’s competition laws and handed a €24.5 million fine. However, the company plans to challenge the decision, believing it to be unfair.

The fine was imposed on the operator by Greece’s gambling regulator, the Hellenic Gaming Commission (HGC) following an alleged competition laws violation. The accusations stem from complaints by smaller Greek Gambling companies which claim that OPAP is guilty of unfair pricing, sanctioning transactions unfairly and limiting distribution of equipment.

As a result, the HGC issued the aforementioned fine, seeking to reprimand OPAP for its alleged wrongdoings.

However, OPAP was unamused. While the operator expressed its respect for the regulatory bodies, it pointed out inaccuracies in the allegations.

OPAP Disagrees with the Decision

According to the Greek gambling company, the HGC’s decision does not relate to the company’s main business but rather to bill payment services and mobile top-up services offered by its agencies. In addition, OPAP noted that the current decision contradicts an earlier decision issued by the regulator’s committee and multiple civil court rulings.

OPAP added that HGC did not take Bank of Greece data into account before making its decision. In addition, the operator said that the regulator has calculated the fine in an unacceptable way. According to the gambling company, the HGC calculated the fine over the total turnover of OPAP and not over the minor turnover in the markets where the company has allegedly violated the Greek and EU rules.

Finally, the majority of HCC proceeded with an unfounded increase of the size of TORA Wallet and TORA Direct in the bill payment services and mobile top-up markets respectively, while the fine imposed was calculated – in an unacceptable way – over the total turnover of OPAP and not over the minor turnover in the markets in which the alleged violation took place, i.e. the turnover of TORA Wallet and TORA Direct.

OPAP statement

OPAP reiterated its commitment to adhering to the law, following fair competition protocols and protecting the group’s consumers from gambling harm. However, the firm disagrees with the recent decision and plans to challenge it in court.

Earlier this year, OPAP signed a long-term partnership agreement with OpenBet. Under the deal, the latter company agreed to support the Greek operator’s sports betting business with technology, trading solutions and the cutting-edge SportCast solution. This move helped OpenBet consolidate its presence in the important Greek market while supporting OPAP’s robust business.

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