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LOTTOLAND.CO.UK OPERATOR FINED £760K FOR SOCIAL RESPONSIBILITY & AML FAILINGS
Staying Legit
LOTTOLAND.CO.UK OPERATOR FINED £760K FOR SOCIAL RESPONSIBILITY & AML FAILINGS
Image credit: EU Lotto
EU Lotto, the operator of lottoland.co.uk, has been hit with a GB£760,000 fine and formal warning, after a Gambling Commission investigation uncovered social responsibility and anti-money laundering failures.
The failures are said to have occurred between October 2019 and November 2020, and include failing to spot markers of potential gambling harm, insufficient financial and affordability checks, and inadequate interaction with customers regarding potential harms.
Anti-money laundering issues included failure to effectively review or analyse bank statements provided by customers to prove addresses, failure to restrict accounts following source of funds requests, allowing customers to register debit cards belonging to third-parties, and relying too heavily on threshold triggers.
Helen Venn, Commission Executive Director, said: “This case, like other recent enforcement action, was the result of planned compliance activity. All operators should be very aware that we will not hesitate to take firm action against those who fail to meet the high standards we expect for consumers in Britain.”
Nigel Birrell, CEO of Lottoland, commented: “Lottoland is fully committed to ensuring the highest standards of compliance, including its anti-money laundering and social responsibility obligations in all of the jurisdictions in which it operates. The Gambling Commission fine was related to legacy issues around some of our compliance controls which have now been addressed. Lottoland has extensive compliance measures in place and we are confident that our current policies and processes meet all relevant standards.
“Remedial action taken included significantly increased investment in our compliance function, more than doubling headcount, alongside a host of other initiatives including bringing in third party support, enhancing training and a review of key policies. In addition, we recently committed to building our individual processes into an automated system to improve the system even further.”
Co-founder and Chief Editor of AYO.NEWS: Coming from an art and design background, Oliver has a passion for video games and esports, and has several years of experience working at the heart of the iGaming and sports betting industry in Malta.

Photo by redcharlie on Unsplash
The Dutch Gaming Authority, Kansspelautoriteit (KSA), has named ten companies that will be awarded online gambling licenses, and permitted to start operations in the Netherlands tomorrow, 1 October 2021.
Operators awarded licenses are:
- TOTO online (owned by Dutch government-backed Nederlandse Loterij)
- Holland Casino (owned by Dutch government)
- Dutch Janshen-Hahnraths Group (FPO Nederland brand)
- Betent
- Bingoal Nederland
- Hillside
- LiveScore Malta
- NSUS Malta
- Play North
- Tombola
Speaking on Dutch TV current affairs program Nieuwsuur on 27 September, KSA Chairman, René Jansen, confirmed that out of 30 applications, only ten had been approved, with the others likely to be rejected for failure to meet requirements. However, Jansen did suggest more licenses would be granted at a later date.
Meanwhile, LeoVegas has announced it will cease to provide gambling services to the Netherlands as of today, 30 September 2021. The operator has previously been fined and warned by the KSA for offering what it deemed to be illegal online gambling to customers in the country. However, LeoVegas has said it took measures to ensure full compliance with Dutch prioritisation criteria, and the KSA’s policies, and that it intends to apply for a Dutch license later this year.
In June, LeoVegas joined the Netherlands Online Gaming Association (NOGA), a trade body established to represent gambling providers operating in the country.
AYO.NEWS says:
The KSA had previously hinted that it wouldn’t be looking kindly on those operators who had dared challenge its authority over the past few years, so it’s perhaps not surprising to see so many applications rejected at this stage. The question is, will the KSA soften its stance as it becomes more comfortable with the operation of the market, or will it continue to turn the screws, Swedish-style?
The Swedish Trade Association for Online Gambling, Branschföreningen för Onlinespel (BOS), has called on the Ministry of Finance to scrap proposals for tighter gambling advertising rules.
If the proposed new rules, which are supported by the Swedish gaming regulator (Spelinspektionen), are adopted, gambling advertising will be reclassified as requiring ‘special moderation.’
In effect, this would mean that gambling advertising would be much more tightly regulated, in line with things like alcohol, requiring warnings on all marketing and advertising content, and subject to a 21:00 watershed for TV, radio, and digital platforms.
Calling for the proposals to be dropped, BOS Secretary General, Gustaf Hoffstedt, said: “This is another proposal from the Government that plays straight into the hands of unlicensed gaming companies in Sweden. The trump card of licensed gaming companies has been the opportunity to market themselves and thus channel gaming consumers into the safe Swedish licensed system.
“If the possibility of [broadcasting adverts] becomes even more difficult, the leakage out of the Swedish licensing system, and already 25% of the turnover for online casinos leaks out of the licensing system, will fall to even more critically low levels. In the name of consumer protection, this proposal must be withdrawn.”
BOS members include Betsson, bet365, LeoVegas, Microgaming, Betway, Pinnacle, PokerStars, Flutter, Entain, Cherry Casino, Evolution, SG Digital, Gamesys Group, Casumo, SuprNation, Video Slots, Kambi, Quickspin, and Hero Gaming.
AYO.NEWS says:
Given the way Swedish authorities, including Spelinspektionen, have treated licensed operators over the last couple of years, it’s surprising any companies are still investing in the country. Whichever way you look at it, logically, it’s extremely difficult to argue against Hoffstedt on this one. But, do we think rational arguments and facts will sway the clearly anti-gambling Swedish lawmakers? Not at all. Oh well, there are plenty of fresh new pastures across the Atlantic.
Staying with Swedish drama, earlier this month, both Vivaro and Fair Play Bets lost licenses due to inactivity, while in August Mr Green was hit with a SEK31.5M fine for regulatory breaches.
Lithuanian lawmakers have taken the first steps to allowing online-only gaming licenses in the country.
Currently, only land-based operators can apply for a remote gambling permit in the Baltic country. However, the Seimas, Lithuania’s legislative body, has now approved the first reading of amendments to the country’s gambling laws, which if passed, would enable operators to apply for an online-only license.
Under the proposed amendments, operators would need to hold at least €1.2M in capital for a casino gaming license, €289K for a sports betting license, and €144K for a horse racing betting license. Qualifying applicants would also have to pay a €1M fee on receipt of their license, and additional fees of €300K to offer slots, €100K for bingo, and €500K for remote gambling.
Additionally, the proposed amendments would also introduce new rules for land-based operators, with all new slot halls, bingo halls, and betting shops needing to be approved by local councils.
Though the first reading was approved with 74 votes in favour, 7 against, and 39 abstentions, a second reading of the proposed amendments will still need to be approved for the changes to become law.
AYO.NEWS says:
Though this will be welcome news for operators targeting Baltic expansion, the fees are pretty steep for such a small market (Lithuania has a population of under 2.8 million). Marketing gambling products in the country could be a bit of a challenge too, considering that all gambling advertisements and promotions, including special offers, discounts, and bonuses, were made illegal in Lithuania from 1 July 2021.
The Dutch Gambling Authority, Kansspelautoriteit (KSA), has hit Malta-based iGaming operator Tipico with a €531,250 fine for illegally offering online gaming to Dutch customers.
According to the KSA, an investigation that began in January found Tipico was illegally offering games of chance to customers in the Netherlands via its tipico.com website. Investigators say they were able to register and deposit money into an account from the Netherlands. It was subsequently found that, between 30 April to 31 July 2020, there had been almost 5,000 transactions involving Dutch bank accounts.
This violation attracted a base fine of €200,000. However, the KSA then piled on extra fines of €75,000 each for offering illegal bonuses, charging an inactivity fee, and offering live betting. The fine was also increased because the KSA deemed Tipico had not adequately verified the ages of customers.
Following the action, Tipico has blocked access to its website from Dutch IP addresses.
With the long-awaited and much delayed launch of the Dutch gambling market due on 1 October, those operators who have successfully secured a KSA license are gearing up to battle for market share in what promises to be a lucrative market.
AYO.NEWS says:
Though Tipico might not be having much luck in the Netherlands, it’s been making big strides in rapidly growing US markets over recent months. Just last week, the operator announced a deal with TVM DOOH, the largest display screen network in restaurants and bars across America, while earlier in the month it inked a 10-year multi-state market access agreement with Caesars Entertainment.
The Belgian gambling regulator has added 16 more unlicensed online gambling websites to its blacklist, including Evobet.com, Winorama.com, and Cloudbet.com
In June, the regulator added 4 domains, followed by 28 more in July. The latest additions bring the total to some 277 domains.
The 16 new sites added to the blacklist are:
- evobet.com
- eu.spinsamba.com
- domgame.com
- wildblaster88.com
- cobracasino.com
- eat-sleep-bet.com
- winspark.com
- winorama77.com
- fr.winorama.com
- cloudbet.com
- cherrygoldcasino.com
- casollo.com
- casinonic.com
- casinoextreme.eu
- casinochan.com
- casitu.com
In a statement, the Belgian Gaming Commission reminded players: “It is forbidden for anyone to operate a game of chance without a license previously granted by the Gaming Commission. It is also prohibited for anyone to participate in an illegal game of chance, facilitate its exploitation or advertise it.”
Under Belgian law, individual players are liable for fines of up to €25,000 if they gamble on unlicensed sites, while the operators can face fines of up to €100,000.
In the same vein, last month, Polish authorities warned residents that it was a serious criminal offence to use unlicensed gambling sites, and that if caught doing so they could face fines equivalent to the entire total of any winnings, plus money staked or lost.
With the UK Government’s white paper on the future of gambling legislation expected to be published within the next few months, reports suggest a ban on football shirt sponsorship is highly likely.
Apparently, a wider ban on TV commercials and pitch side advertising is also still under consideration, but less likely.
According to the Daily Mail, a source close to the review said: “We are pretty sure there is going to be an end to front-of-shirt advertising. Everybody is expecting that. Reformers want more but a lot of politicians are worried about the lower leagues. The Government thinks front-of-shirt will catch the headlines and it will feel like it has made a bold statement.”
After the white paper is published, there will be a three-month consultation period before any bill goes in front of Parliament, so any changes are unlikely to have a direct impact on teams until 2023. Nevertheless, the spectre of losing a critical source of revenue is worrying teams across Britain.
Illustrating the scale of the issue, 9 out of 20 English Premier League teams, and 6 Championship clubs, had front-of-shirt gambling sponsorship deals this season, estimated to be worth in the region of GBP£100M in total.
Furthermore, all but one Premier League club, and 15 Championship sides have some form of partnership with a betting brand. However, despite a ban on front of shirt sponsorships, it is widely expected other, less prominent partnerships will be allowed to continue in some form.
Responding to the prospect of a shirt sponsorship ban, EFL Chairman, Rick Parry, said: “The last thing we need at the moment is for restrictions on other valuable sources of income because they can’t be just switched overnight. If not betting, which market should we go to?”
Predictably, the potential shirt sponsorship ban has been welcomed by anti-gambling pressure groups and campaigners, but some are pushing for things to go further, calling for broadcast and online ads to be banned too.
Big Step founder, James Grimes, said: “A shirt sponsorship ban would be a welcome and significant acceptance of the harm caused by gambling advertising in football. But this single measure would be relatively redundant if adverts are still permitted pitchside, during match broadcasts and online.”
AYO.NEWS says:
Though it has long been known a ban on shirt sponsorship was a distinct possibility, it’s understandable that many in the industry assumed the financial havoc wreaked by the COVID crisis would convince the government to refrain from any drastic measures for now. However, that doesn’t look like it’s going to be the case, and we think it’s probably time for clubs and betting brands to start making alternative plans.
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