Spreadex — a spread betting company — was ordered to pay £1.4 million by the Great Britain Gambling Commission for social responsibility failures.
In addition to being regulated by the Gambling Commission and the Financial Conduct Authority, Spreadex provides online casino, sports betting, spread betting on sports and financial spreads. Sports and financial spread betting are available at the site.
Concerns about Spreadex’s compliance with regulations were expressed by the Gambling Commission in May 2021. An assessment of their licensing conditions found that they had violated AML and social responsibility requirements between January 2020 and May 2021. These violations were caused by a regulatory review that began in June 2021. Ineffective financial alerts allowed customers to lose money at a rapid pace; additionally, these alerts were over-relied on to identify customers at risk of abuse.
During one month, a customer lost $500,000 out of a deposit of $1.7 million. The Gambling Commission judged that the operator did not properly examine the effectiveness of account restrictions during interactions with the customer.
