ENFORCEMENT
Use of criminal proceedings and sanctions in the UK The United Kingdom has achieved significant success in the past three years in tackling illegal gambling as a result of government agencies working together through the Government Agency Intelligence Network (GAIN). Regional Organised Crime Police Units have worked closely with the Gambling Commission, Licensing Authorities and HM Revenue and Customs to disrupt and close down illegal gambling activity within Great Britain. This combined with the increased use of the Proceeds of Crime Act 2002 to prosecute offenders for money laundering offences has meant that the authorities are able to strip the perpetrators of their assets and illegal profits and secure longer prison sentences rather than prosecute for offences under the Gambling Act. The maximum penalty for the unlawful use of premises or unlawful provision of facilities for gambling is 51 weeks. For money laundering offences the maximum prison sentence on indictment is 14 years. As recently as 28th February, 2024 the Welsh Regional Organised Crime Unit, in conjunction with officers from the Gambling Commission, HM Revenue and Customs and Cardiff City Council Licensing executed six search warrants and raided an illegal poker den in an industrial unit in Cardiff. Two individuals were arrested for Money Laundering Offences and offences under the Gambling Act. 1 The first use of the Proceeds of Crime Act by a Licensing Authority to prosecute illegal gambling was back in 2014 when Enfield Council in North London carried out a similar raid of an illegal poker den known as Big Bluff. This was a case where the “proprietor” had been granted a Club Gaming Permit which authorises the playing of poker at restricted stakes by members of a bona fide club. The proprietor had previously been warned to comply with the terms of the Permit by the Authority and Police following a compliance visit. It was estimated that the proprietor had taken over £400,000 out of what transpired to be an illegal commercial business. He was subsequently convicted of money laundering offences and received a prison sentence of 15 months, and following his release, faced forfeiture proceedings in relation to assets the Council had managed to
track down and seize. The Licensing Authority is able to use amounts forfeited to put towards the costs of an investigation and prosecution. If a Licensing Authority prosecutes for offences under the Gambling Act, they incur considerable costs. Even if there is a costs order in their favour, they will not recover the true costs of the investigation and the proceedings. Similar combined enforcement action has been successfully used to identify operators of illegal lotteries on social media and, in particular, on Facebook. In February 2022 the Gambling Commission issued a press statement confirming that, in conjunction with two Regional Organised Crime Units, they had identified and targeted key individuals profiting from illegal schemes. The Commission highlighted that in these cases the promoters were targeting the vulnerable: “There were hundreds of people taking part in these lotteries, but it was important to identify those who were organising and moderating them illegally. Working alongside our colleagues at Facebook and the police, we are pleased that key individuals have been identified and this type of activity, which only increases the risk of gambling harm, has been disrupted.” 2 The police added: “It’s important to acknowledge the harm illegal gambling can cause, especially when unregulated lotteries like these benefit from targeting some of the most vulnerable people in our communities, especially those caught up in a cycle of addiction”. 3 As a result of one of the investigations an individual was the subject of a Proceeds of Crime Act forfeiture application at Middlesbrough Magistrates Court in March 2022. The police seized £140,000 from the individual’s bank accounts, which was confiscated as being the personal profit derived from the illegal activity. The court ordered the forfeiture of the whole amount. The case officer commented: “No one should profit from criminal activity and the Proceeds of Crime Act enables police and partner agencies to confiscate cash, including money held in bank accounts and other physical assets gained through illegal means. This result serves as a stark warning that
1 https://www.south-wales.police.uk/news/south-wales/news/2024/march/illegal-gambling-den-raided-as-part-of-national-police-intensifica- tion-against-fraud/#:~:text=The%20den%2C%20which%20occupied%20the,chips%2C%20and%20multiple%20flatscreen%20televisions. 2 UK Gambling Commission statement 3 North East Regional Special Operations Unit statement
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IMGL MAGAZINE | APRIL 2024
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