Last week’s fine against AG Communications sheds light on an increasingly strict regulatory landscape for gambling operators
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The UK Gambling Commission fined AG Communications a total of £1.4 million (US$1.8 million) for a string of regulatory offences, including anti-money laundering (AML) and social responsibility failures on 4 March 2025.
The actions by AG Communications prompted a warning from the commission to all operators that regulatory failures will “result in increasingly stringent enforcement action.”
The penalty marks the second time the gambling operator has faced regulatory action for similar offences. The commission levied a £267,600 (US$306,575) fine against AG Communications in November 2022 over AML failures concerning failed due diligence checks on third-party businesses.
Lexology PRO examines AG Communications’ fine and what operators can expect from more regulatory and enforcement actions aimed at addressing AML and gambling-related harms.
“Wholly unacceptable” deficiencies
The commission identified two areas of regulatory failings by AG Communications:
Inadequate AML controls
The commission alleged that the operator’s AML policies relied too heavily on financial thresholds and lacked adequate due diligence systems for at-risk customers which enabled AML violations. At-risk customers exhibit characteristics which increase their vulnerability and likelihood to engage in gambling harms or risky behaviour, such as those with a history of gambling addiction.
Financial thresholds are the predetermined monetary limits set by regulators to monitor transactions, with any activity exceeding these boundaries subject to investigation. However, there is a risk that customers will open multiple accounts and intentionally hover just below the threshold to obscure suspicious behaviours.
According to the commission, AG Communications was slow to respond to activity which reached financial thresholds. In one instance where thresholds were hit, the necessary due diligence checks were delayed by a week.
AG Communications’ actions directly contravene key pieces of gambling legislation, including the Proceeds of Crime Act 2002 (POCA) which requires operators to implement AML controls and perform customer due diligence checks, and the Gambling Act 2005 which governs all aspects of licencing and gambling regulation.
Failure to prevent gambling harms
AG Communications neglected to implement effective systems to “prevent customers spending significant amounts of money in a short period of time before an assessment was made as to whether the customer was potentially at risk of gambling related harm,” breaching the commission’s Licence Conditions and Codes of Practice (LCCP) which states that businesses must engage with customers throughout gambling sessions to minimise their risk of gambling-related harm.
The LCCP requires a telephone interaction to take place once a customer has been identified as at-risk as part of its Responsible Matrix Interactions Protocol. AG Communications neglected to do so.
As a result of the operator’s misconduct, a customer lost £6,000 (US$7,746) in 48 hours and another customer deposited and lost £7,000 (US$9,036) in just over four hours due to a system error. One customer was also able to open several gambling accounts despite having previously self-excluded, meaning they voluntarily chose to ban themselves from engaging in gambling after recognising their vulnerability to gambling harms.
Operators in the hot seat for AML breaches
The fine against AG Communications is one in several recent enforcement actions levied against gambling operators.
Last month, the commission ordered gambling operator Merkur Slots to pay £95,450 (US$123,332) for social responsibility failings. Additionally, online gambler Greentube Alderney received a £1 million (US$1.2 million) fine in January after the commission uncovered AML and social responsibility violations.
The wave of enforcement actions suggests a stricter regulatory climate for operators to navigate.
On 14 February 2025, the commission delivered fresh insights on AML enforcement trends and emerging threats, including financial threshold risks similar to those observed in the violations by AG Communications. According to the commission, relying solely on financial thresholds does not consider the non-financial indicators or money laundering and other risk profile factors to be aware of.
Under POCA, operators must conduct a risk assessment for AML and terrorist financing which adequately identifies and analyses money laundering risks.
Adequate risk assessments should extend to product risk. This is critical for operators, such as AG Communications, who offer remote bingo and casino services, where the risk of money laundering is amplified because the customers are not physically present.
Operators must perform thorough due diligence, including customer verification checks and transaction monitoring to mitigate money laundering risks and detect suspicious activities.
Calls for increased due diligence procedures can also be heard outside the UK. On 4 February 2025, the Swedish Gambling Authority issued new guidance (Swedish language only) on due diligence to combat money laundering and terrorist financing in the gambling sector, including background checks and requirements for valid identification documents.
Stronger protections against gambling harm
The case against AG Communications is part of a wider industry crackdown against gambling-related harm. In the UK, a series of new regulations aimed at bolstering consumer protection and tackling gambling harms are set to take effect in 2025.
Starting on 6 April 2025, UK gambling operators must pay a statutory levy to raise £100 million (US$124 million) for research on gambling harm prevention and treatment. Currently, contributions vary, with some operators paying as little as £1 (US$1.2) annually. First payments are due by 1 October 2025.
As of 28 February 2025, operators must conduct financial vulnerability checks on customers with net deposits of £150 (US$189) over 30 days, down from the previous £500 (US$630) threshold. Additionally, new consent requirements for direct marketing take effect on 1 May 2025.
Stronger measures to prevent gambling harms can also be seen in other countries. France announced plans to open a six-month consultation on online casino regulation in 2026.
Elsewhere, the Netherlands is expected to introduce a new gambling bill aimed at raising the legal age requirement for online slots from 18 to 21. The bill is expected to take effect by the end of 2025. The proposed legislation arrives amid concerns about the growing number of high-risk gamblers among minors and young adults in the Netherlands.
To mitigate against underage gambling and related harms, several countries are integrating biometric verification into their gambling regulations. Brazil, Argentina, and Uzbekistan have all enforced biometric identification checks for gambling operators.