The online gambling firm run by Britain’s best-paid woman has agreed to pay a £582,120 settlement after failing to prevent potential money laundering and protect vulnerable customers.
Bet365, controlled by billionaire Denise Coates, did not carry out meaningful checks on high-risk punters, according to the Gambling Commission.
The watchdog added Bet365 had not carried out financial sanctions checks on new customers, failed to make independent verification checks, and relied too heavily on customers’ annual self-verification of their identities.
The settlement, which follows an investigation by the commission in March 2022, comes as Bet365 faces a financial crime investigation in Australia.
In enforcement cases settled by the Gambling Commission, regulatory settlement funds are directed towards socially responsible causes. In cases where a fine is imposed, the money is collected by the Treasury.
The Australian Transaction Reports and Analysis Centre (Austrac) watchdog is examining into allegations it broke anti-money laundering and counter-terrorism financing laws.
Founded in 2000, Stoke-headquartered Bet365 has grown into one of the world’s largest betting firms and has generated a vast fortune for Ms Coates, who started the business working out of a portakabin.
Its success has made Ms Coates Britain’s best-paid woman. She took home a salary of more than £220m last year, as well as dividends of about £50m.
This came after a rise in sales to £3.4bn at Bet365 over the year ending March 2023, although the company made a loss of £72.6m, which was blamed on investment in the US market.
British companies have been investing millions into the US since a Supreme Court decision in 2018 allowed states to set their own laws on betting and gambling, which sparked an explosion of demand.
However, some have struggled with profitability and difficult levels of competition. The parent company of William Hill, 888 Holdings, said last month that it was considering a sale or exit of its US consumer business because of high costs and red tape.
As well as owning Bet365, Ms Coates’ family are backers of the Stoke City football club. Her father Peter is the chairman, and the family owns the team’s stadium in Stoke.
A prominent patron of the arts, Ms Coates has a wing of the Courtauld Gallery in London named after her.
There is no suggestion of any wrongdoing by Ms Coates.
Kay Roberts, executive director of operations at the Gambling Commission, said: “The policy and procedural failings may not have been as severe as those at other gambling businesses in recent years but they were failings none the less.
“We expect high standards from operators in terms of keeping gambling safe, fair and crime-free, and will always take action to correct any failings. This operator is very aware that a repeat of these failings will result in escalating regulatory action.”
Bet365 was approached for comment.