Gambling Commission hands AML fine to Corbett Bookmakers

Setting out the case today (20 March), the Gambling Commission said breaches took place between February 2022 and May 2024. Corbett Bookmakers operates 36 premises across the UK.

The retail operator, which has a number of betting pitches across UK racecourses, is also required to carry out a third-party audit to ensure it is effectively implementing AML and safer gambling policies, procedures and controls. This must take place within 12 months of the ruling (6 March).

Corbett allowed players to lose ‘significant’ sums

In terms of social responsibility failures, the commission provided examples of several issues it identified during a two-day compliance assessment. These include failing to flag a consumer who staked £23,674 in a 13-day period as someone who may be at risk of harm.

Corbett also failed to “adequately” interact with a consumer who lost £3,523 while placing 56 bets in four hours. Another player staked £47,416 and lost £6,741 in 10 weeks, again without adequate interaction from the operator.

As for AML, failures include players being able to stake and lose “significant” sums without KYC evidence or verifying source of funds. This, the commission said, was due to the high financial thresholds in place at Corbett.

In one case, a customer staked £47,000 and lost £14,000 during an eight-month period. This all took place without Corbett verifying the legitimacy of the monies accepted from the user.

Also on AML, the commission said Corbett’s money laundering and terrorist financing risk assessment failed to consider the full scope of customer, product, geographic and payment risks. As such, it was deemed to have failed to take a “sufficiently risk-based” approach to AML.

As for which rules Corbett breached, the commission highlighted several regulations in its ruling. These include paragraphs 1 and 2 of Licence Condition 12.1.1 covering the prevention of money laundering and terrorist financing.

The regulator also flagged paragraphs 1a, 1b, 1c and paragraph 2 of social responsibility code provision 3.4.1, all of which relate to customer interaction. In addition, Corbett was deemed to have not fully considered Ordinary Code Provision 2.1.2 paragraph 1 on AML.

Commission: Case should serve as warning to others

Commenting on the ruling, John Pierce, director of enforcement at the commission, said other operators should consider the action taken against Corbett and ensure their own operations are up to scratch.

“Corbett has failed to adhere to vital regulations designed to make gambling safer and free from criminal activity,” Pierce said. “As a result, it will not only pay a significant fine but also undergo a rigorous audit to ensure full compliance with anti-money laundering and safer gambling measures.”

The commission noted that Corbett cooperated throughout the investigation and has taken corrective steps to address the identified failings. However, Pierce warned it must ensure it also adheres to recommendations from its upcoming audit.

“In addition to remedial actions already taken, we expect the operator to swiftly and fully implement the audit recommendations, demonstrating clear and measurable improvements in both policy and practice,” Pierce said. “Failure to do so will prompt our compliance team to reassess the situation and take further action as necessary.”

“All operators should carefully consider this case and the price this operator is now paying.”

Corbett is the second operator this month to face a financial penalty from the commission. Earlier in March, AG Communications, operating under AspireGlobal, was ordered to pay £1.4 million over social responsibility and AML failures.