UKGC hits Videoslots with £650,000 fine

The fine is only one part of the mandated punishment. Videoslots Limited, which runs popular sites including Videoslots.co.uk, MrVegas.com, and Megariches.com, has also been issued a formal warning and, crucially, must undergo a Mandatory Independent Third-Party Audit.

The action, which comes at a time when player safety is paramount (especially during Safer Gambling Week), serves as a sharp condemnation of the operator’s over-reliance on automated systems that were demonstrably ineffective at protecting players and preventing financial crime.

When limits didn’t limit

The core of the social responsibility failure centred on a breach of Social Responsibility Code Provision (SRCP) 3.4.1, which mandates operators to identify and interact with customers to minimise gambling harm. The investigation found that Videoslots’ monitoring systems were flawed, resulting in players being allowed to gamble well beyond their self-imposed restrictions.

The resulting lack of protection led to these severe outcomes, as detailed by the UKGC:

• Safer gambling failure: The deposit limit system excluded a player’s initial deposit, allowing one customer to lose £5,000 in under 24 hours despite a self-imposed £3,000 monthly cap.

• AML failure: An over-reliance on a defective algorithm meant a customer deposited over £75,000 via high-risk digital vouchers in 16 days, transferring funds to multiple bank accounts without a timely Source of Funds (SOF) check.

These examples clearly demonstrate how an over-reliance on ineffective automated tools failed to identify potential harm, leaving vulnerable players unprotected.

AML failures: The £75,000 oversight

The investigation also uncovered serious breaches of Licence Condition 12.1.1 relating to the effective implementation of Anti-Money Laundering (AML) controls. These failures included poor record management, gaps in policy, and, once again, an over-reliance on an automated algorithm to manage high-risk financial activity.

ALM failure	Details of breach
High-risk deposits	A customer deposited over £75,000 in 16 days using digital pre-payment vouchers—a high-risk payment type.
Source of funds (SOF)	The customer’s automated risk score did not trigger a timely request for Source of Funds information, leading to unacceptable delays in due diligence.
Fund tracing	Proceeds were transferred to four different bank accounts, while the user was occasionally accessing the account from outside Great Britain, all without effective oversight.
Operator assumption	Videoslots often relied on the presumption that high activity was funded by “recycled winnings” without sufficient scrutiny or validation.

John Pierce, UKGC Director of Enforcement, criticised the unacceptable delays and the operator’s processes. He specifically highlighted the dangers of using "open-loop payment systems," such as digital vouchers, stating

"The over-reliance on an algorithm to monitor risk meant that the customer was able to carry out a high volume of deposits and transfer the proceeds of gambling to multiple different destination accounts with insufficient and timely checks."

What this means for Videoslots and the players

For Videoslots, this penalty, alongside a previous large financial fine levied by Sweden's Spelinspektionen earlier this year for excessive gambling failures, makes it clear that a complete revamp of its compliance technology and culture is non-negotiable. The required independent audit will be the operator's test, and the UKGC will be monitoring the outcomes closely.

The players

For account holders, this decisive action offers reassurance that the regulator is actively policing systemic safety failures. While customer funds were never at risk, current players can expect to see enhanced and more robust monitoring, with a greater emphasis on proactive and timely interaction, ensuring their limits and financial risk profiles are genuinely safeguarded.

A timely reminder during Safer Gambling Week

The timing of this announcement provides an ironic backdrop to Safer Gambling Week. The UKGC’s robust enforcement action reinforces the core message: that whilst safe gambling is a personal responsibility, licensed operators have a non-negotiable duty of care.