Videoslots Fined £650,000 After UK Regulator Finds AML And Safer Gambling Failures

Videoslots Limited has been ordered to pay a £650,000 penalty after the UK Gambling Commission concluded that the operator failed to maintain adequate anti-money laundering controls and safer gambling protections. The enforcement action also includes an official warning and a requirement for an independent third-party audit.

Good to Know

• Videoslots must complete a full audit of its AML and safer gambling framework
• Failures included weak monitoring, poor escalation, and ineffective digital voucher oversight
• UKGC flagged multiple customers who exceeded deposit limits without timely intervention

The investigation covered Videoslots’ activity across its brands, including videoslots.co.uk, mrvegas.com, and megariches.com. Regulators found that the company relied on systems that did not effectively track customer behaviour, leading to repeated missed opportunities to identify signs of harm.

Customers Exceeded Limits Without Intervention

Videoslots applied automated monthly deposit limits, but the limits did not consider customers first deposits in the cycle. The calculation method allowed several customers to spend well beyond the thresholds set for them. One customer lost £5,000 in a single month despite a £3,000 limit, another lost £5,000 in only 24 hours under the same cap, and a third lost £7,500 over 18 days with a £2,000 limit. Investigators also found a case where a customer lost £6,550 across three active gambling days with no meaningful check or intervention.

AML Failures And Over-Reliance On Automated Risk Tools

The UKGC identified wide gaps in Videoslots AML systems, including incomplete policies, weak record-keeping, and over-dependence on an automated risk-scoring algorithm that repeatedly failed to flag high-risk activity. The regulator highlighted customers who deposited large sums through digital pre-payment vouchers, withdrew funds to multiple bank accounts, and accessed the platform from outside Great Britain.

One customer deposited more than £75,000 in digital vouchers within 16 days and withdrew money to four different accounts. Despite clear red flags, the system did not trigger timely source-of-funds checks. Another customer moved substantial sums in and out over a month, yet Videoslots assumed the activity was covered by recycled winnings and did not escalate the risk.

John Pierce, director of enforcement at the UKGC, said the findings showed clear deficiencies. He said:

“The investigation identified a serious example where pre-paid digital vouchers had been used for gambling without effective oversight and early intervention. The over-reliance on an algorithm to monitor risk meant that the customer was able to carry out a high volume of deposits and transfer the proceeds of gambling to multiple different destination accounts with insufficient and timely checks or robust source of funds verification taking place.”

Pierce said Videoslots failed to act quickly enough and did not conduct enhanced checks until customers had already reached substantial spend levels.

Regulator Urges Industry Wide Action

The UKGC advised operators using digital voucher or open-loop payment systems to report the issue as a key event if they have not yet done so. Businesses were also encouraged to review updated guidance covering new money laundering and terrorist financing risks.

Alongside the fine and warning, Videoslots must now complete a full independent audit, and the regulator plans to monitor the outcome closely.

The post Videoslots Fined £650,000 After UK Regulator Finds AML And Safer Gambling Failures appeared first on iGaming.org.