UKGC Fines Stride Gaming Subsidiary $9.2 million Over AML
The United Kingdom Gambling Commission (UKGC) has toughened its stance against wrongdoers. From 32Red to Stride Gaming, everyone is on the receiving end of what the regulatory watchdog considers justice. More often than not, the UKGC is usually right. So why is Stride Gaming contesting the latest fine?
Stride’s Subsidiary Slapped with Hefty Fine
Stride Gaming has responded to the most recent fine against one of the company’s subsidiaries, Daub Alderney. The entity was fined to the tune of $9.2 million, which is one of the most substantial fines to this date the UKGC has issued.
Previously, the watchdog contented itself with hitting 32Red with $2.2 million over a problem gambler dispute. However, the case of Daub Alderney merited a penalty on an almost unprecedented level. The operator has immediately responded to the sanction, asking for a reduction, as the fine was clearly “excessive and disproportionate [to the offense].”
The polemic, if one is about to begin, is rooted in the recent analysis of the UKGC which has found that the subsidiary is not compliant with the anti-money laundering (AML) and player protection controls. The operator has requested that the penalty is cut in half, down to £4 million.
The UKGC was obliged to penalize the company after it had found out about the issue. The real-world implications of failing to comply with the above-stated aspects of the gambling experience mean that Daub is in practice unable to identify when customers are developing or suffer from problem gambling.
The Panel concluded that it was appropriate for the Licensee to pay a financial penalty of £7,100,000 and that this was a proportionate outcome. – UKGC
The investigation also established other disconcerting facts, such as the lack of coverage on over 700 accounts who had invested £50,000. Stride first addressed the issue in September, when the company said that it’s prepared to bear the financial consequences of having an affiliate which was performing under the specified legal minimum.
However, the UKGC has decided to ramp up the amount, nearly doubling it. As a result, Stride Gaming is trying to initiate a conversation with the regulator and attempt to bring the price down to the originally proposed £4 million.
As reasons for the reduced penalty, Stride said that they had addressed the outlined issues completely and that they have the necessary framework to avoid such things from happening in the future. Apart from that, Stride had requested the services of Deloitte LLP, which carried an independent investigation and will be hired on a biannual basis to help Stride Gaming be on top of any breaches.
With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.
