Since uncovering a number of corporate responsibility and anti-money laundering failings, the UK Gambling Commission (UKGC) has taken enforcement action against Casumo, a Maltese igaming and sportsbook facilities provider, imposing fines exceeding £6 million.
The Commission learned that Casumo has neglected to enforce policies and practises on customer service initiatives between October 2019 and January 8, 2020, after an investigation of the operator’s operations.
Corporate justice violations
A Casumo client lost £1.1 million over three years due to corporate justice violations – including not being exposed to responsible gambling experiences.
Further anomalies resulted in a client losing £65,000 in a month and another losing £76,000 over a seven-month stretch, with neither player getting some sort of customer support intervention.
According to the Commission, Casumo’s failures resulted in a customer losing £89,000 in a five-hour cycle and another customer losing £59,000 in a 90-minute session.
Casumo has also been charged with several consumer AML failures, including failing to reference sufficient Source of Funds (SOF) checks.
Casumo showed ‘No assessment or limit’ as to how much a consumer should be able to pay based on established income, education, or any other risk factors, according to the UKGC.
Furthermore, the Commission found that the operator had failed to show that any required anti-money laundering practises, protocols, or controls were effectively enforced.
The Executive Director of the Commission, Richard Watson, stated: “This case was brought about through planned compliance activity and every operator out there should be aware that we will continue to take firm action against those who fail to raise standards.”
Cooperation during investigation
Casumo responded to the sanction by stating that it had completely cooperated with the UKGC during the in-depth investigation of its compliance-related gambling practises, which began during the previous management team.
The failures, according to the company, occurred as a result of the “hyper growth Casumo experienced during its start-up phase.”
New CEO Shelly Suter-Hadad, who was named for her expertise in developing compliance-driven gaming groups and has maintained operational control since January 2020, has taken action to resolve the operator’s historic problems.
“Since joining Casumo last year, my focus has been on putting in place a new senior leadership team and Personal Management License holders with extremely strong industry experience and the knowledge and expertise to ensure we are a compliance-led business,” Suter-Hadad commented.
“In addition, recognising that key processes fell short in the past, I took immediate action to implement fundamental operational changes so that Casumo is now a gaming group with compliance and responsible gambling at the heart of its business and culture. These efforts, together with our full collaboration, have been formally recognised multiple times by the Commission.”