A stark warning has been issued regarding the oversight of financial practices within a major betting firm. Regulators sharply criticized Betfred for significant weaknesses in its ability to detect and prevent money laundering linked to its gaming machines.
The core of the issue lay in Betfred’s failure to adequately monitor customer behavior on B3 gaming machines – a critical blind spot in identifying potential gambling-related harm. Regulators found the company unable to effectively flag concerning spending patterns and financial indicators that would suggest a customer was struggling.
While the failings were described as primarily “technical breaches” rather than stemming from specific instances of customer exploitation, the regulatory body deemed them unacceptable. Thresholds for identifying risk were set too high, and existing processes lacked sufficient safeguards to protect vulnerable individuals.
Officials acknowledged that Betfred had begun to address these concerns following an initial assessment. However, an independent audit will be crucial to verify that these improvements are lasting and truly bring the company into full compliance with anti-money laundering and social responsibility standards.
The future of Betfred’s high street presence was recently cast into doubt amidst discussions of potential tax increases. Prior to a recent budget announcement, the company’s founder warned that a significant tax hike could force the closure of all its physical betting shops.
Ultimately, the budget revealed a planned increase in taxes on online wagers – rising from 15% to 25% starting in 2027. Crucially, however, the tax rate for bets placed in traditional betting shops remained unchanged, offering a reprieve for Betfred’s physical locations.
This decision signals a clear focus on regulating online gambling, suggesting that Betfred’s network of high street shops is likely to remain operational for the foreseeable future. The company appears to have avoided an immediate crisis, but the scrutiny on its financial controls remains intense.
