The UK Gambling Commission (UKGC) has imposed a financial penalty of £29,237 ($36,660) on FSB Technology for breaching various license conditions, including failures related to money laundering prevention, fair and transparent practices, and customer interaction. This action highlights the authority’s ongoing vigilance despite the UK’s regulatory uncertainty amidst the ongoing white paper consultations.
The Penalty Is Relatively Mild
FSB is a global gaming and betting solutions supplier, providing technology services to UK-licensed brands like Fitzdares, QuinnBet, and BetGoodwin. The island nation remains a jurisdiction of substantial strategic importance for the company, highlighting the significance of the UKGC’s warning and fine. Luckily, the regulator did not impose any further penalties, so FSB’s operations in the country should remain mostly unaffected.
The penalty follows an investigation conducted by the UKGC during a period when FSB held a “combined remote operating license.” The commission found that FSB failed to follow adequate money laundering and terrorist financing prevention procedures. Additionally, the company did not follow fair and transparent practices and failed to comply with the Social Responsibility Code Provision (SRCP) concerning customer interaction.
According to the UKGC, failure to comply with the SRCP constitutes a breach of license conditions under the Gambling Act 2005. In line with its enforcement policy, the commission decided to impose a financial penalty of £29,237 but otherwise took no further action for the time being. This fine is relatively modest by the regulator’s standards, as punishments sometimes reach hundreds of thousands of pounds.
Restructuring Efforts Have Resolved These Shortcomings
FSB Technology cooperated with the investigation, and the UKGC acknowledged that the company ceased offering business-to-consumer (B2C) services in 2022. As the regulator’s scrutiny focused on the B2C side of the business, FSB should be free to focus on its business-to-business (B2B) offerings, empowering UK brands with its industry-leading offerings.
In response to the penalty, FSB Technology issued a statement accepting the UKGC’s verdict and acknowledging the settlement related to the period when it held a B2C remote operating license. FSB reiterated its commitment to maintaining excellent compliance standards and highlighted a successful assessment by the regulator in December 2023. The company expressed readiness to continue collaborating with the Gambling Commission.
This financial penalty against FSB Technology comes amidst increased regulatory scrutiny in the UK gambling industry amidst the country’s ongoing white paper consultations. Despite the UKGC’s pivotal role in overseeing the UK’s updated gambling legislation, the authority retains its primary focus on fostering a safe and sustainable market that prioritizes the well-being of consumers.
