UKGC Hits Spreadex With Major Fine – A Warning Shot for Emerging Casino Brands

The failings were discovered during a compliance review carried out in July 2023, with the infractions dating back to the period between September 2022 and November 2023. This is also close to the period of time when Spreadex acquired its sporting index from competitor FDJ, which was later called into question by the Commission. According to the Commission, Spreadex’s controls and risk assessments failed to meet the standards expected of a licensed operator in Britain, particularly when it came to identifying potential money laundering and protecting at-risk players.

This marks the second time Spreadex has faced regulatory action. The first occurred in 2022, when the operator paid a £1.4 million settlement for similar issues involving similar AML shortcomings and weak social responsibility safeguards.

Among the more concerning examples cited in the latest case was an instance where a player deposited roughly £64,000 over a short time and lost £50,000 within a single month, without the company obtaining adequate source of funds documentation. Spreadex reportedly relied too heavily on what customers reported to them about their finances, rather than verifying that information independently.

The UKGC also highlighted social responsibility failings. One player exceeded a daily deposit limit of £3,340 on 12 out of 14 days. Despite this clear pattern of potentially harmful behaviour, Spreadex only issued a handful of automated pop-up messages and failed to conduct any direct human interaction.

John Pierce, Head of Enforcement at the Gambling Commission, called the operator’s behaviour “unacceptable,” citing delays in customer interventions and inadequate safeguarding policies. He emphasised the importance of prompt, proportionate action when red flags arise and warned that the Commission will escalate enforcement for repeat offenders.

In addition to the financial penalty, Spreadex will now undergo an independent third-party audit to evaluate the effectiveness of its AML and player protection frameworks.

The ruling sends a strong signal to newer and growing gambling operators. As the regulatory landscape tightens, robust AML procedures and social responsibility measures are essential. The UKGC has shown that those who ignore warning signs and rely on outdated compliance practices may face more than just financial penalties.