Isle of Man gambling regulator issues £3.9m fine over AML failings
The regulator is considering tighter controls for Isle of Man gambling operators.
UK.- The Isle of Man Gambling Supervision Commission (GSC) has imposed a £3,937,500 civil penalty on Celton Manx, the operator of the SBOTOP sportsbook. It said the operator had committed multiple anti-money laundering (AML) compliance failures.
The regulator said shortcomings in Celton Manx’s AML framework included insufficient risk assessments, weak customer due diligence, inadequate identity verification, and a lack of effective monitoring systems. The company also failed to implement proper procedures for handling suspicious activity, conducting technology risk assessments, and training staff.
Celton Manx had already surrendered its Isle of Man licence back in May. A few days later, it was confirmed that TGP Europe, which ran SBOTOP in Britain under a white-label agreement, had surrendered its British licence after the Gambling Commission said it would have to pay a £3.3m fine, also for AML breaches.
The GSC says it has since conducted a review of Celton Manx’s customer files. It detected multiple breaches of Section 19 of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018, some of which the regulator deemed to be systemic. The initial fine was to be £5.625m, but it was reduced by 30 per cent following the company’s early cooperation and remediation efforts.
The GSC said the penalty “reflects the serious nature of the identified non-compliance” while acknowledging Celton Manx’s willingness to engage constructively to resolve the matter.
Meanwhile, concerns continue to be raised about SBOTOP’s sponsorship of Fulham FC given that it no longer has a British gambling licence. The Gambling Commission has written to the club as well as to Nottingham Forest and Crystal Palace over their deals with Kaiyun Sports.
Another operator fined
GSC has also issued a £70,000 fine, reduced from £100,000, against SK IOM, again for AML failings. The company, operated the BetInvite brand, but stopped accepting bets on July 2.
The regulator said that SK IOM’s compliance officers lacked the necessary authority and expertise, and that the firm failed to maintain adequate monitoring systems or conduct required AML/CFT testing. The GSC said the company had cooperated and implemented corrective measures.
The GSC has suggested that it will look at tightening rules for gambling operators amid concerns about the jurisdiction’s reputation following the case of TGP Europe. It was also considering a review of its responsible gambling policies.
There are currently around 80 active online gambling licensees. In June, the Isle of Man Constabulary reported 10 that international money laundering investigations were underway, mainly linked to igaming, with approximately £300m in assets frozen.
In January, Mark Rutherford was promoted to become the new CEO of the GSC. Previously deputy CEO, he has been with the gambling regulator since June 2013, initially serving as director of policy and legislation.
Taking up the position, he said he would be “working closely with partner agencies to understand the emerging threat that faces the Island’s gambling sector. It is imperative we continue to review and adapt our approach to stay aligned with evolving challenges.”
