The United Kingdom Gambling Commission (UKGC) released a statement earlier this week, reminding gambling license holders about compliance. In the statement, the gambling regulator told the gambling operators that they need to remain responsible and comply with the corporate change and source of funds practices. These gambling license holders need to be able to provide complete information about the origin of funds as well as any changes that concern acquisitions.
The UKGC further noted in the statement that it had learned a few lessons concerning regulations and the gambling industry. One of the lessons came when the regulator revoked the gambling license of MaxEnt Ltd in June 2019. The gambling company lost its license when the gambling regulator discovered that they had a corporate change and did not inform the UKGC. MaxEnt has subsequently appealed the license revocation, which limited the UKGC from taking more action. The result of the appeal is still pending. However, the Gambling operator announced earlier this month that it would shut down operations. Brexit and strategic business issues were given as reasons for the shutdown.
UKGC Found that MaxEnt Ltd Filed with Another Gambling Regulator
The Gambling watchdog found that the gambling company had filed a licensing application with another gambling regulator. However, the other regulator failed to do thorough research concerning management and source of funds. It was when MaxEnt Ltd applied for a continuation of its gambling license that the UKGC found that the company did not comply with regulations. The company had a corporate change and did inform the gambling watchdog of the change. The gambling regulator was happy with the source of money that the gambling operator used to finance the company. The UKGC stated that the source of the money posed some potential risks to the gambling licensing objectives. The UK Gambling Commission further noted that MaxEnt would be used as a venue for crime and the like due to the money and the source.
The UKGC also failed to find out more information about the management structure of the company. The management structure was one of the details that were not provided in the Licensing application.
In the statement released by the UKGC reminded gambling operators to need to learn from the mistakes of MaxEnt Ltd. The statement went on to say that staying responsible and compliant with the regulations set by the Watchdog is crucial.