UKGC Hits FSB With £600k Fine Triggering Greater Scrutiny for White Label Behaviour

UKGC Hits FSB With £600k Fine Triggering Greater Scrutiny for White Label Behaviour May 11, 2020 May 11, 2020 Carolyn Dutton
 Industry May 11, 2020 by Carolyn Dutton
UKGC Hits FSB With £600k Fine Triggering Greater Scrutiny for White Label Behaviour

The UK Gambling Commission (UKGC) fined FSB Technology a total of £600,000 for what the UKGC considered failures of the sportsbook and white label supplier in managing the behaviour of its licensed third-party partners.

The UKGC investigation showed that a number of FSB’s white label partners ran afoul of various industry standards on anti-money laundering, appropriate advertising, customer interaction, self-exclusion protocols and responsible gambling guidelines.

The gambling commission was compelled to investigate FSB after their sudden takeover of the now defunct white label supplier Blacktype. FSB’s fine will be allocated toward its responsible gambling initiatives, outlines in their new National Strategy. 

According to the UKGC, as the license holder, it is the responsibility of FGC to provide oversight for their partners’ operations and practices. In their judgment, the Gambling Commission stated that the ‘white label’ partnership between FGC and its partners renders FGC responsible for ensuring that their partners conform to the GC’s regulations on fair gambling practices. The UKGC also warned other white label suppliers that it is their job to enforce the standards set out by the Commission on gambling operators.

The UKGC has been joined by the Department for Digital, Culture, Media and Sport (DCMS) in stating that a review of technology suppliers will be a key component in the upcoming government review of the 2005 Gambling Act, widely considered as obsolete by anti-gambling advocates. The UKGC’s licensing department has stated it is essential for their role to understand the role of technology suppliers in the operation of online gambling firms.

White Labels to be Held Responsible for Partners’ Behaviors

Richard Watson, Executive Director for the UKGC said that the Commission’s actions against FSB should serve as a warning to other technology providers, as it is a precedent for how the Commission will view the behavior of other white labels with respect to their third-party partners’ activities.

Watson stated that white label licensees will be held responsible by the UKGC for any breaches or shortcomings to gambling regulations committed by their partners—putting the onus to police such activities squarely on the white labels.

An official response issued by FSB acknowledged the issue outlined by the GC. The company stated that such oversights will not occur again as they will take the required action to fix such mishaps. FSB’s statement also noted that they made various improvements to their partners’ operations, which now meets the standards of the UKGC.

Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world