The UK Gambling Commission reports that it has successfully intervened in an illegal gambling scheme. In its press release, the regulator explained that a man involved in an unlawful WhatsApp ring failed to pay a customer’s £269,000 account balance.
The perpetrator, Haydon Simcock, 40, of Valley Road, Weston Coyney, Stoke on Trent, has been slapped with a 30-week suspended prison sentence and a 200-hour community service order.
The gaming watchdog also ordered the culprit to undergo 20 hours of rehabilitation activity, along with paying £230,0001 in compensation to the victim and £60,000 in Gambling Commission costs.
Simcock Offered Gaming Services without a License
Previously, Simcock admitted to offering gambling services to individuals. However, he did so without having a proper license. The incident occurred between October 18, 2023 and September 11, 2024. He also confessed to running illegal advertising of gambling products without a permit between May 26, 2023, and March 1, 2024.
The UK Gambling Commission and Staffordshire Police launched an inquiry into the case after getting a signal from an investigative reporter at the Racing Post. The two sides investigated together and took the matter to the Birmingham Magistrates’ Court to determine a suitable sentence for the culprit.
It was uncovered that Simcock, who claimed to be the VIP Commercial Manager at The Post Bookmakers, performed the following actions:
- invited individuals to gamble via WhatsApp.
- created accounts, acted as a customer service agent, and personally collected cash from customers to place the bets on their behalf.
- offered direct administrative back-up to the gambling activities, as he agreed odds, offers, including matched deposits and rewards for referrals and taking payments from consumers.
Accepting Dirty Money as Wagers
According to the UKGC, data found on Simcock’s electronic devices revealed that he accepted wagers from people he suspected of dealing drugs. It was also found that he suggested ‘he could make a dissatisfied customer disappear.’ He was also found to have failed to pay one customer his £269,000 account balance.
He did not pay the balance to the said customer. However, on several occasions, Simcock assured the individual that his money was ‘safe’.
Birmingham Magistrates’ Court shared that the perpetrator had narrowly avoided custody and instead was given a two-year suspended sentence.
UKGC’s Comments on the Matter
John Pierce, Director of Enforcement for the gambling regulator, said the following on the illegal betting scheme:
“This case illustrates all the risks that consumers face from illegal gambling – links to crime, having no regard for social responsibility, repeatedly exploiting consumers and operating without any of the necessary operational safeguards in place.”
In his words, the investigation is a statement of the regulator’s determination to take legal measures against illegal operations and protect local consumers.
“Using mobile apps like WhatsApp does not make illegal gambling invisible or beyond our reach – we can evidence such activity is taking place, and we will use every power available to us to play our part in removing this unlawful activity from the British marketplace and to ensure those responsible are held to account,” added Pierce.
Betfred Owner Gets a Fine
Besides the intervention with the illegal gambling ring, UKGC also reported that it has imposed a fine on Done Brothers. The company, which trades as Betfred, will have to pay a £825,000 penalty after the commission discovered failures in social responsibility and anti-money laundering.
Betfred, which operates numerous betting shops across the UK, has also received a warning and will have to go through a third-party audit. This examination will seek to find whether it has effectively implemented its anti-money laundering and safer gambling policies, procedures and controls.
Findings from the Investigation
According to the gambling regulator, some of Betfred’s anti-money laundering breaches included:
- The operator failed to identify money laundering risks related to customers playing on B3 gaming machines.
- The operator lacked proficient protocols in place to identify and deal with customers who may be subject to financial sanctions.
- The range at which the gaming company raised questions about customers’ source of funds was not adequately risk-based, with limits at £15,000 losses and at £125,000 stakes in a calendar year.
In the meantime, Betfred also violated the following social responsibility protocols:
- The operator failed to properly recognise spending and any related financial indicators of gambling harm for bettors playing on B3 gaming machines.
- Customer interactions were often missed after noticing risk indicators, or when they did, discussions were not done in a manner to minimise the risk of gambling-related harm.
- The quality of interactions failed to meet the required standards.
Not the First Violation
This is not the first time that Done Brothers Limited has been penalised by the UK regulator. In 2023, the operator was ordered to pay £3.25 million regulatory settlement for social responsibility and anti-money laundering failures.
Speaking on the fine, the Commission’s Pierce shared the following:
“Failings identified during the 2024 Compliance Assessment were predominantly technical breaches rather than arising from specific customer examples; they were nevertheless unacceptable, particularly with thresholds appearing too high and insufficiently risk-based when assessed in practice, and deficiencies in some processes and procedures”
The commission acknowledged that the improvements the operator has also made, and the independent audit will be enough for the operator to be fully compliant with social responsibility and anti-money laundering standards, concluded Pierce.
