Sports Media Industry Giant, Hit With Record £594,000 Fine Over Social Responsibility Breaches

Leading operator Star Sports has been hit with a substantial £594,000 fine by regulators after significant breaches in anti-money laundering (AML) and social responsibility standards were uncovered. The breaches came out after an investigation conducted by the Gambling Commission.

The significant fine is the consequence of a regulatory authority inquiry. Their conclusions throw doubt on the company’s commitment to respecting regulatory requirements and protecting customers by exposing apparent shortcomings in the company’s AML measures and social responsibility practices.

Star Sports subsidiary under scrutiny

The operating brand of Star Racing, trading under the name Star Sports is the company being fined. The Gambling Commission has sent an official warning and added another clause to their license agreement after discovering the breaches for the period between March 2020 and May 2021. Additionally, it was discovered that they failed to examine source of funds information when it was provided and allowed consumers to deposit sizable sums before collecting source of funds information.

The £594,000($772,840) penalty not only serves as a financial blow to Star Sports but also raises concerns about the effectiveness of their existing compliance mechanisms. It underscores the need to establish stringent controls, robust risk assessment procedures, and comprehensive customer due diligence protocols to prevent money laundering.

ALSO READ: “Don’t F**king Clap for Them”: Renowned Tik-Toker Makes a Mockery Out of NASCAR’s $50-Million Chicago Race, Dividing Racing Fanbase

Breaches made by the company

Specific breaches noted in the case included Paragraphs 2 and 3 of license condition 12.1.1: Anti-money laundering. This relates to preventing the financing of terrorism and money laundering.

The Commission also flagged License Condition 12.1.2. Due to this, operators based in foreign countries must adhere to the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Additionally, it was determined that Star Racing had violated Social Responsibility code provision (SRCP) 3.4.1. The law’s need for licensees to engage with patrons in order to reduce the risk of harm brought on by gambling.

The regulator decided on the punishment and warning in accordance with the Commission’s licensing, compliance, and enforcement policy statement. It has been on a spree of fine payments and investigations over the last 12 months, levying hefty fines over several operators.

In a speech last month, Sarah Gardner, the deputy chief executive of the Gambling Commission, made reference to recent enforcement actions. She added: “Whilst these examples and recent cases show the scale of some failings in the recent past, we are seeing some hopeful signs that things are improving.“

The imposition of the fine highlights the severity of the lapses committed by Star Sports and sends a strong message to other operators in the industry. Regulators are taking a proactive stance in ensuring that gambling companies prioritize their responsibilities in combating money laundering and promoting responsible gambling practices.

Watch this story – Intensifying Playoff Pressure Triggers Hendrick Motorsports’ War Declaration on Joe Gibbs Racing