The U.K. Gambling Commission has fined Spreadex Limited £2,022,000 following an investigation into anti-money laundering (AML) and social responsibility violations. The online gambling operator, which runs Spreadex.com, must also undergo a third-party audit to ensure compliance with regulatory policies.
Regulatory Failures Identified
A July 2023 compliance assessment revealed multiple failures tied to Spreadex’s Gambling Commission license for casino and fixed odds betting.
Anti-Money Laundering Breaches
- Risk assessment deficiencies: The operator failed to consider key customer, product, geographic, and payment risks, violating Commission guidelines.
- Weak AML policies & reliance on self-reported finances: Customers deposited large sums without sufficient Source of Funds (SOF) verification.
- Example: A customer deposited £64,000 and lost £50,000 within a month, yet Spreadex did not request proper SOF documentation.
- Lack of enhanced monitoring: Spreadex did not increase scrutiny when customers began making larger deposits or exhibiting high-risk gambling activity.
Social Responsibility Failures
- Inadequate intervention for high-spending customers: A customer reached a £3,340 daily deposit limit 12 times in 14 days, but the operator only issued four pop-up warnings instead of conducting direct human interactions.
Previous Regulatory Action & Industry Warnings
This marks the second enforcement action against Spreadex, following a £1.36 million regulatory settlement in 2022 for similar AML and social responsibility breaches.
John Pierce, Head of Enforcement at the Gambling Commission, emphasized the severity of Spreadex’s failures:
“This case reinforces the expectation that operators must maintain robust AML and social responsibility measures. Placing excessive trust in customer-provided information rather than independent verification is unacceptable. Repeated non-compliance will result in escalating enforcement actions.”
Pierce also highlighted concerns regarding cross-channel gambling oversight, stressing the need for collaboration between regulators, including the Financial Conduct Authority, to ensure effective risk management.
Implications for the Gambling Industry
The fine serves as a strong warning to operators about maintaining compliance, responsible gaming safeguards, and swift intervention when potential gambling harm arises.
Operators must ensure:
✅ Stronger customer monitoring for AML and social responsibility compliance
✅ Human intervention in high-risk cases, beyond automated pop-up messages
✅ Holistic risk assessment when customers engage in gambling across multiple regulated sectors
As gambling regulation continues to tighten, businesses should anticipate stricter enforcement, enhanced oversight, and harsher penalties for non-compliance.
