All Bets Are Off: UKGC Suspends Leeds' Victoria Gate Casino License
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Since its opening in January 2017, the Victoria Gate Casino has become a nightlife hotspot for Leeds residents and visitors to the city. However, all bets are off at the North of England's first "super casino" after the UK Gambling Commission (UKGC) suspended its operating licence.
The UKGC ordered the cessation of all gaming activities at the Victoria Gate Casino in Leeds on October 31. Would-be patrons who headed to the £30 million venue were greeted by a notice taped to the entrance, informing them that its license had been temporarily suspended. However, the management team hoped to reopen and welcome them back very soon.
Viewing the Victoria Gate Casino's licence on the UKGC website confirms its suspension. A statement from the UKGC reveals the commission is investigating inadequacies in the casino's anti-money laundering and counter-terrorist policies.
"Serious concerns were identified regarding the adequacy of decision-making processes and the licensee's response to identified anti-money laundering and counter-terrorism financing risks, raising questions about the overall effectiveness of its governance and risk management arrangements. These failings are considered significant and represent a serious threat to the licensing objectives, in particular, keeping crime out of gambling."
Victoria Gate Casino Previously Hit With £450,000 Penalty
The Victoria Gate Casino opened to the public to much fanfare in January 2017. Built at a cost of £30 million, the casino boasts 50,000 square feet of gaming floor housing 22 gaming tables and 175 slots.
Four years later, in October 2021, the UKGC fined the casino's operators £450,000 ($615,000) due to deficiencies in their safer gambling policy. A UKGC statement at the time read, "Our investigation identified weaknesses in VGC's safer gambling controls and found it had failed to effectively implement its policies for customer interaction."
"Furthermore, VGC failed to make use of all relevant sources of information to ensure effective decision making and to guide effective customer interactions."
That statement highlighted two prominent failings. First, Customer A lost £275,000 over 22 months before the casino requested the source of funds evidence. The operator accepted a tax account that could not support the customer's losses.
Customer B incurred £93,294 in losses in 16 months. The casino requested proof of the customer's source of funds, setting a seven-day deadline. However, the customer did not supply copies of their bank statements for seven weeks, and was permitted to gamble during that time. Although the customer's bank statements showed a substantial balance, the origin of the funds was not verified.
Victoria Gate Casino paid £241,000 for the financial gain accrued as a result of the accepted failings, plus an additional £209,000 in lieu of a financial penalty. It also paid £21,578.17 in costs to the UK Gambling Commission.
Incoming Fine Could Top £1.6 Million
One would imagine that the UKGC will levy a substantial fine on Victoria Gate Casino should its investigation confirm the alleged failings. The UKGC has a five-tier system for determining financial penalties, based on Gross Gambling Yield. This ranges from 0% to 0.99% for Level 1 offenses, but up to 15% for Level 5 offenses.
Victoria Gate Casino's last reported financial figures reveal a gross profit of £10,854,007, indicating that the casino's operators may be liable for a fine of up to £1.6 million if the UKGC's investigation finds them guilty of the charges.
