Corbett Bookmakers fined over £686,000 for compliance failures
Corbett Bookmakers Limited, which operates 36 land-based betting shops across the UK, has been hit with a £686,070 (USD 864,360 / €802,620) penalty after a Gambling Commission investigation found serious breaches in anti-money laundering and social responsibility requirements.
The Commission’s findings followed a two-day compliance assessment and a wider licence review process. The investigation uncovered repeated failures to protect customers and to prevent the risk of criminal funds entering the regulated gambling sector.
Alongside the financial penalty, Corbett Bookmakers will face additional licence conditions. One of the conditions is a third-party audit within 12 months to check if the firm is actually following its AML and safer gambling rules.
Customer care failures
Social responsibility breaches revealed that the operator did not adequately identify or interact with customers who displayed clear signs of risky behaviour.
One customer staked £23,674 ($29,830 / €27,696) in just 13 days without being flagged for support or monitoring. In another instance, a customer lost £3,523 ($4,437 / €4,120) over a four-hour session, placing 56 bets with no meaningful interaction from staff.
A third customer staked £47,416 ($59,772 / €55,479) and lost £6,741 ($8,495 / €7,886) over a 10-week period without receiving the necessary attention or safeguarding.
The Commission confirmed that these failings breached Social Responsibility Code Provision (SRCP) 3.4.1, which requires operators to identify and interact with customers at risk of harm. It also found a breach of SRCP 1.1.2, which holds licensees accountable for the conduct of third parties acting on their behalf.
The British Horseracing Authority (BHA) recently raised concerns about a clear rise in people using unlicensed horseracing betting sites in the UK. A recent study by the International Federation of Horseracing Authorities (IFHA) found that illegal betting platforms have grown at an alarming rate, far outpacing the legal market.
Money laundering controls not fit for purpose
Anti-money laundering controls were found to be seriously lacking.
One customer staked approximately £47,000 and lost £14,000 over an eight-month period. Despite these high amounts, the operator failed to verify the legitimacy of the funds or obtain sufficient Know Your Customer (KYC) documentation.
The Commission found that Corbett Bookmakers had set financial thresholds so high that they prevented meaningful intervention. As a result, customers were able to gamble large sums without scrutiny.
Furthermore, the company’s risk assessments fell short of the expected regulatory standard. The assessment failed to consider product, geographic, customer or payment risks fully. This lack of a risk-based approach breached Licence Condition 12.1.1 in preventing money laundering and terrorist financing.
Two regulatory decisions and rising penalties
This is not the Commission’s first action against Corbett Bookmakers. In September 2022, the operator received a warning, a £215,600 financial penalty, and a requirement to undergo a third-party audit following similar findings.
The latest penalty brings the total paid by the company in the past three years to over £900,000.
In both investigations, the company cooperated fully with the Commission and took steps to rectify its compliance processes. However, repeated breaches prompted the regulator to impose stricter conditions and a larger penalty.
Last month, Corbett Bookmakers Limited reported stable revenues of £92.9 million ($117.05 million / €108.69 million), a slight drop from the £93.3 million ($117.56 million / €109.16 million) in 2023. Their pre-tax profit sharply declined to £7,348 ($9,258 / €8,593), down from £584,616 ($736,617 / €682,000) in 2023, reflecting the economic strain affecting the UK horseracing industry.
Regulator delivers stern warning
John Pierce, the Commission’s Director of Enforcement, reiterated that the outcome should be a warning to all operators.
“This operator has failed to adhere to vital regulations designed to make gambling safer and free from criminal activity,” he said.
“As a result, it will not only pay a significant fine but also undergo a rigorous audit to ensure full compliance with anti-money laundering and safer gambling measures.
“In addition to the remedial actions already taken, we expect the operator to swiftly and fully implement the audit recommendations, demonstrating clear and measurable improvements in both policy and practice. Failure to do so will prompt our compliance team to reassess the situation and take further action as necessary. All operators should carefully consider this case and the price this operator is now paying.”
Repeat failings could risk licence
While the operator has avoided a suspension or revocation of its licence, the repeated breaches and the scale of the penalties suggest a narrowing tolerance from the regulator.
Operators who do not learn from initial sanctions or fail to improve systems and culture may face tougher measures in future, including licence removal or criminal investigation referrals.
The audit must now examine whether Corbett Bookmakers is effectively following its policies and procedures for both AML and customer protection. The findings could trigger further action if concerns remain.
For now, the company retains its licence but with the weight of close regulatory scrutiny on its operations.
