What fines casinos face for license violation

In short: for what and how they punish

Regulators fine casinos (online and offline) for three groups of misdemeanors:

1. Protection of the player and honesty of games - the rules of Responsible Gaming have been violated, mathematics/versions of games are not certified, RTP/RNG do not comply, payment delays.

2. Finance and AML/KYC/KYT - weak identification, opaque payments, lack of segregation of client funds, reports filed with distortions.

3. Marketing, data and operational contour - misleading advertising, targeting minors, data leaks, cybersecurity holes, lack of logs.

Sanctions usually go "ladder": prescription → fine → restriction of activities → suspension → revocation of license. In parallel, personal fines and disqualifications of managers are possible, as well as a criminal line for severe AML/fraud.

Types of sanctions (what can fly)

Financial

Fixed/range penalties (for each episode or day of delay).

Percentage of turnover/GGR (for large violations - sensitive and growing rapidly).

Confiscation of economic benefits (disgorgement) and compensation to players.

Daily penalties for failure to comply with regulations.

Non-financial

Restriction of verticals (prohibition of live/slots/bonuses before correction).

Freeze new registrations or marketing.

Suspension of the license for the duration of the investigation/remediation.

License revocation and no resubmission for N years.

Blacklists for key persons (disqualification of directors/MLRO/Compliance Officer).

Mandatory audits/monitoring at the expense of the operator, publication of the "public statement."

Risk matrix: violation → consequences

Violation	Typical sanctions	Aggravating factors	Mitigating factors
RG: no limits, ignores self-exclusions, underage play	Large fines, marketing restriction, temporary suspension	Repetition, harm to the player, concealment of facts	Self-disclosure, rapid compensation, introduction of RG tools
RNG/RTP/certification: undeclared edits, RTP drift	Penalties, stop releases/games, force recertification	Chance manipulation, mass impact	Quick version rollback, transparent report and compensation
Customer payouts/funds: delays, lack of segregation	Very large fines, freezing of activities, recall	Using player funds for operational needs	Reserve fund, voluntary payments in excess of
AML/KYC/KYT: poor onboarding, SAR/STR unreported	Large fines, personal liability MLRO/board	High-risk countries/schemes, systemic negligence	Independent audit, strengthening procedures, retrospective reports
Ads/Affiliates: mislead, target <18/21, "guaranteed winnings"	Fines, channel bans, blacklisting affiliates	Mass reach, vulnerable groups	Removal of creatives, compensation, hard admin affsets
Data/IS: PII leaks, no MFA/logs	Privacy fines, information security regulations, external monitoring	Prolonged concealment, repeated leaks	Prompt notification, IR plan, forensics and corrections
Reporting: false/late reports	Penalties, fines, increased supervision	Distortion of finances, attempt to deceive	Self-correction, correct backfills

According to the fine: the logic of the regulator

1. Severity and duration of impairment (episode/periodic practice).

2. Scale of impact: number of players affected, amounts, ad reach.

3. Repetition and intent: whether there was a prescribed period for correction, whether traces were hidden.

4. Economic benefit: the profit gained must be taken into account.

5. Operator behavior: self-disclosure, cooperation, speed of remediation and compensation.

Cases (generalized, not tied to one jurisdiction)

Ignoring self-exclusion: the operator accepted deposits from self-excluded; bottom line - six-digit penalty, independent RG audit, mandatory public statement.

Undeclared slot edits: hot edit of RTP → symbol weights left the corridor; the result is a stop list of the game, a fine, force recertification, compensation to players.

AML failure on VIP: withdrawal of a large amount without EDD/source of funds → multimillion-dollar fine, personal sanctions, increased monitoring for a year.

"No risk" advertising: a campaign with the promise of a guaranteed win → a fine and a temporary ban on outdoor advertising/influencers.

Payment delay: cash gap → regulator introduces restrictions on new registrations, fine, reserve fund requirement.

What happens after a violation is detected: procedure

1. Notice of suspicion/letter of non-conformity: request for documents, logs, explanations.

2. Interview and sampling: the regulator checks samples of support rounds/payments/tickets.

3. Prescription: remediation time, time limits (for example, stopping bonuses).

4. Final decision: amount of fine/impact measure, audit and public disclosure requirements.

5. Appeal: Filing on time with evidence of good faith/disproportionate penalty.

6. Monitoring: post-factual reports, independent audit, control points.

How to prepare a position for appeal (practice)

Facts and logs: full package of unchangeable logs (WORM), comparison with reports.

Matrix of causes and consequences: who suffered, what amounts are compensated, what measures have already been implemented.

Voluntary steps: compensation for players, terminated contracts with violating affiliates, new policies.

Comparison with "similar cases": the argument about the proportionality of sanctions.

Remediation plan: deadlines, responsible persons, independent audit, KPIs (for example, the share of those verified before the deposit is 100%).

Prevention: 12 practices that dramatically reduce the risk of fines

1. RG "sewn into UX": limits/timeouts/self-exclusion in a prominent place, not hidden.

2. KYC to Game/Output + EDD for VIP/High Risk; regular POP/sanction screenings.

3. WORM logs of rounds/payments/admin actions + deviation dashboards.

4. Banning hot math edits: release gates, build hashes, recertification.

5. RTP monitoring: corridors, weekly reconciliations, automatic alerts and investigations.

6. Segregation of funds + reserve fund of payments; daily bank reconciliations.

7. Marketing review: checklist 18 +/anti-mislead, pre-approval of creatives, control of affiliates.

8. KYT and anti-fraud: rules on deposits/conclusions, investigations of "cash/mules" patterns.

9. Pentests/information security: MFA/SSO, key/seat management, IR/BCP exercises, DPIA.

10. Reporting by design: API/CSV layouts agreed, XBRL/portals tested, deadlines in the calendar.

11. Personnel training: annual certification of RG/AML/IS for support, marketing, engineers.

12. Legal market screening: local differences in advertising/taxes/online monitoring are taken into account even before launch.

Check sheets

Before Release/Campaign

RNG/game certificates valid; 'game _ version _ hash' fixed
RTP in the showcase matches the certificate; wager calculator running
Creatives passed legal & compliance review; 18 + and disclaimers visible
Whitelisted affiliates, UTM tags, and contracts are up to date

Daily/Weekly

DQ-board of logs "green" (completeness/uniqueness/timeliness)
RTP/payouts/jackpots in corridors; investigations into open alerts are underway
Bank reconciliations: customer funds = platform balances
AML/KYT reports (SAR/STR/CTR) generated and submitted on time

In case of incident

IR playbook started (classification, RACI, timeline)
Players notified and compensated if necessary
Regulator notified at the required time with facts and logs
Post-mortem + corrective action plan published

Frequent mistakes and their price

"Paper RG/AML": tools in words → heavy fines, increased monitoring, marketing ban.

No segregation of funds: delays in payments → freezing of activities/revocation.

Hot math edits: RTP departure → stop list of games, penalty, recertification.

Risk-free advertising: misleading tone → fines and public statements.

Weak information security: PII leak → privacy fines, mandatory audits, reputational losses.

Overdue reporting: penalties, repeated inspections, deterioration of relations with banks/providers.

A fine is not a "surprise," but a natural result of a weak process design. Operators who stitch compliance into the product - RG/AML/KYT, certified version-controlled content, immutable logs, segregation of funds, honest marketing and audit readiness - live crisis-free and grow faster. This saves money on sanctions, accelerates expansion into new markets and, most importantly, creates confidence among players and payment partners.