10 Times Online Casinos Got it Badly Wrong

We all like to think of online casinos as being reputable and honest, upholding the highest standards of integrity and being 100% customer-focused. But we never seem to consider the online casino fails. It may interest you to know that, amazingly, online casinos don’t always get it right; occasionally, they go wrong – badly wrong! 

Fortunately for you and me, the global glambling industry is regulated by some extremely diligent gambling commissioners. They don’t care how big and successful online casinos are; if they slip up, the commission will be waiting!

Top 10 Times Online Casinos Got it Badly Wrong

Since online casinos first launched in 1996, the industry has grown rapidly and is projected to reach $195.12 billion by 2031. Digital jackpots, celebrity partnerships, and slick mobile apps draw millions of players each year – you would think it would be all sunshine and rainbows. Yet, behind these incredible statistics and the incessant buzz, the iGaming space faces constant scrutiny from regulators and watchdogs worldwide.

With so much at stake, online casino fails sting even harder. Brands you least expect are racking up massive fines, losing licenses, and making headlines for all the wrong reasons. From money laundering scandals to compliance failures and reckless marketing, we pull back the curtain on those times the house lost big.

1. Betway’s £11.6M Fine for VIP Failures (UK, 2020)

One of the biggest AML violations in casinos occurred when Betway faced a record fine of £11.6 million. This was after the UK Gambling Commission exposed grave AML breaches and social responsibility failures linked to its VIP gambling program. The regulator found Betway allowed seven high-rollers to deposit and lose millions without proper source of funds checks or responsible gaming controls.

One customer moved over £8 million through Betway, losing £4 million across four years, while another lost £187,000 in two days. Management failed to intervene, ignoring clear signs of risk. 

The Commission stated that £5.8 million in transactions could have been the proceeds of criminal activity. Those funds will now be recovered and returned to the victims.

Richard Watson of the UKGC said Betway showed “little regard for the welfare of its VIP customers.” The case sparked new rules for responsible gaming and tighter controls on VIP incentives.

2. 888 Holdings Suspended in the Middle East (2023)

In early 2023, an 888 Holdings scandal rocked the industry when they suspended all VIP gambling activities in several Middle East markets. The suspension followed an internal review that found casino compliance failures in AML and KYC tied to high-value VIP customers. Lapses in due diligence exposed 888 to serious regulatory and reputational risk, prompting an immediate halt to VIP accounts in the region.

Shares in 888 Holdings tumbled 14 percent as news broke. The company also replaced CEO Itai Pazner, with Chairman Jonathan Mendelsohn stepping in as interim executive chair. 

Even though the board stressed that these compliance online casino mistakes were ‘isolated’ to the Middle East, they acknowledged a lasting impact, accounting for up to three percent of the group’s revenue.

888 Holdings is also set to remove casino advertising from the TfL underground system due to concerns about problem gambling in the city. So it’s not all bad news then!

3. Entain’s Record £17M Penalty (UK, 2022)

The Entain fine of £17 million stands as one of the most significant online gambling fines ever handed to an operator by the UKGC. The ruling came after the UK Gambling Commission exposed systemic AML failures and significant lapses in responsible gambling regulation across the former Ladbrokes Coral group.

Entain’s brands, including Ladbrokes and Coral, allowed customers to deposit massive sums without proper source of funds checks. Blocked players could open new accounts with other brands and lose tens of thousands in a day. Even in their physical betting shops, staff often failed to spot or escalate red flags.

The £17 million penalty included £14 million for online sites and £3 million for retail locations. This may not be the King Kong of UK online casino scandals, but it prompted the UKGC to impose tighter license conditions and warned that future breaches could result in Entain losing its gambling license altogether.

Entertain was hit with further compliance allegations in Australia in 2024 when they were accused of failing to maintain a compliant anti-money laundering program in the country.

4. VicBet’s $130K Fine for Ignoring Self-Exclusion (Australia, 2022)

In what we’d call gambling bribery at its finest, the VicBet fine of AU$130,000 made headlines. This was after the VGCCC uncovered a serious self-exclusion breach and failures in responsible gambling controls. Australian gambling laws bar operators from offering incentives to keep accounts open or sending marketing to self-excluded customers.

VicBet broke both rules, offering a $1,800 bonus bet to a customer who requested account closure, and repeatedly sending promotions to another who had chosen permanent self-exclusion. The VGCCC labeled these acts an “egregious betrayal of trust” and warned all operators that self-exclusion must be respected to protect vulnerable players.

5. William Hill’s £19.2M Fine for AML & SR Failures (UK, 2023)

If you thought online casino payout errors are a problem, imagine how much trouble significant losses can cause. William Hill received a record £19.2 million fine from the UK Gambling Commission for widespread AML oversight and social responsibility failures. 

The regulator found that three William Hill businesses, now owned by the 888 Group, allowed customers to deposit and lose large sums without proper due diligence. In one striking case, a player deposited and lost over £70,000 in a single month.

Weaknesses in AML and customer care controls put new and existing customers at risk. The UKGC described the failings as “widespread and alarming,” and even considered suspending William Hill’s license. The penalty marks the most significant single enforcement action in UK gambling regulation to date.

6. Genesis Global’s License Suspension (UK, 2020)

Genesis Global’s suspension in 2020 marked a turning point for online casino compliance regulation in the UK. The UKGC license was suspended for three months after the operator committed repeated compliance breaches involving social responsibility and anti-money laundering failures.

The operator allowed players to deposit and lose huge sums with no source-of-funds checks or responsible gambling action. One case saw an NHS nurse, earning £30,000 a year, lose £245,000 in three months without any meaningful contact or restriction. Other customers lost six-figure sums before the company took action, relying on unverifiable claims instead of genuine documentation.

The suspension was lifted only after Genesis made significant compliance improvements; however, a £3.8 million fine remained.

7. Sky Vegas Sends Promo to Recovering Addicts (UK, 2021)

The Sky Vegas scandal in 2021 became a textbook PR disaster for the UK gambling industry. During Safer Gambling Week, Sky Vegas made a major marketing fail by sending a Bet £5 get 100 free spins offer to 41,395 self-excluded customers and nearly 250,000 others who had opted out of emails.

Of course, this self-exclusion breach broke strict rules meant to protect vulnerable players. In response, the UK Gambling Commission fined the operator £1.17 million and reminded all gambling operators that marketing must never reach those seeking help. The fallout put Sky Vegas under scrutiny and prompted a comprehensive review of its systems.

8. 32Red and Platinum Gaming  £7.1 million AML Violation Fine (UK, 2023)

While not exactly online casino fraud cases, 32Red and Platinum Gaming, both owned by Kindred Group, were fined £7.1 million by the UKGC in March 2023 for significant anti-money laundering and social responsibility violations. 

Investigators discovered that 32Red allowed some players to lose enormous amounts of money in a matter of days. In one instance, a player deposited £43,000 and lost £36,000 in a week without the operator taking any meaningful action. Platinum Gaming, which runs Unibet in the UK, also failed to properly spot duplicate accounts, sometimes missing players who had self-excluded or been blocked elsewhere.

9. CasinoDays Fined for Misleading Bonus Offer (2025)

In another case of an online casino gone wrong, CasinoDays ran into trouble with the Ontario regulator (AGCO) for how they promoted their welcome bonus. A player complained after losing over C$8,500 due to hidden requirements and harsh conditions buried within the site.

The terms stated to unlock the up to C$2000 bonus were that players needed to deposit and wager a considerable amount (about C$70,000) in seven days, using only small bets. 

The AGCO found these terms to be unfair and were not clearly disclosed. As a result, the operator was fined C$54,000 and warned that all bonus offers must be honest, transparent, and fair. Following this judgment, the site was taken down for scheduled maintenance.

10. Unlicensed Casino Targeting Minors in Lithuania (2024)

In March 2025, Lithuania’s Gaming Supervisory Authority imposed a €11,115 fine on UAB Novogaming Vilnius after the company allowed a minor to remain in a slot machine parlor for nearly an hour. 

The incident exposed critical gaps: the venue’s surveillance system couldn’t capture clear facial images, and staff failed to enforce mandatory age checks, both serious regulatory breaches under national law.

Conclusion / Summary 

Every case in this list exposes the same recurring flaws, AML failures, poor oversight, ethical lapses, and the sting of regulatory backlash. These blunders cost more than just money. The real penalty often hits a casino’s reputation, trust, and ability to operate. Frequently, they lead to online casino fraud investigations and even jail time.

Significant fines, casino license suspension, and public scandals follow when compliance is treated as an afterthought. The harshest lessons came from ignored red flags and shortcuts taken with player protection. From high-profile UKGC fines to underage access in Lithuania, regulators have made it clear: the stakes continue to rise.

As the industry continues to grow and change, transparency, player protection, and increased awareness of responsible gambling practices become all the more critical. Operators who fail to prioritize these will fall behind or vanish. For players and companies alike, responsibility is now the winning move.

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