The UK Gambling Commission (UKGC) has said that operators should learn from the example of the MaxEnt case and ensure full transparency over their funding.
Last summer, the betting operator, which owns the Slotty Vegas brand, had its licence terminated, following the acquisition of NRR Entertainment, although MaxEnt management have continued to dispute the UKGC’s version of how the case unfolded.
The UKGC said that they revoked the licence after MaxEnt made an application for an extension of the existing licence held by NRR Entertainment, at which point they became aware of a previous ownership change at the company that had not been disclosed.
According to the UKGC, the key factor behind their decision to revoke was the lack of transparency over where the funds that were used to finance the company came from. This concern focused on both the previous change of governances and the acquisition of NRR. Speaking about the decision, the UKGC said that they were not satisfied that the funding source was definitively above board:
“Commission officials were concerned that the funds used posed a risk to the licensing objectives, notably, preventing gambling from being a source of crime or disorder, being associated with crime or disorder, or being used to support crime.”
The UKGC said that they believed that MaxEnt had sufficient funding to continue operating but added that they were not transparent about the source of the funding. They also said that one key employee at MaxEnt failed to disclose that they had previously owned another casino.
MaxEnt had planned to appeal against the decision, but they dropped their appeal following the victory of the Conservative Party in the General Election in December, as they felt that the UK’s departure from the European Union would now be inevitable and that it was no longer viable to operate in the country.