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The Isle of Man’s gambling watchdog has hit a former online betting company with a £200,000 ($273,000) fine after an inspection revealed deep flaws in anti-money-laundering (AML) controls..
the action was announced on Friday (February 6), when the Gambling Supervision Commission published the results of an investigation into the implementation of Shelgeyr Limited.
Shelgeyr operates under an Isle of Man license from November 2018 to July 2024, when it voluntarily surrenders approval to offer online gambling services.
Details of enforcement action
Regulators said the review uncovered repeated violations of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019.
According to the commission, the company failed all safeguards, including enhanced due diligence, customer due diligence, record keeping, risk assessment and continuous monitoring of player activity.
Inspectors found that accounts were left open without the additional scrutiny required for higher-risk customers, even when red flags were identified.
The regulator said that Shelgeyr could not demonstrate that it properly established the source of the wealth of customers, applied improved checks on people exposed to politics or regularly monitored the accounts over time.
Required documentation is missing or poorly maintained, leaving gaps in the audit trails intended to demonstrate compliance with the law.
In setting the penalty, the commission said the fine reflected the “serious nature” of the non-compliance.
At the same time, it acknowledged that the company and its senior staff fully cooperated during the investigation, which led to a reduction under the discretionary penalty policy of the regulator.
The commission said the result was intended to strengthen its statutory duties, including protecting customers, limiting financial crime and protecting confidence in the island’s gambling industry.
It also reminds boards and compliance teams that strong governance, documented controls and demonstrable compliance with AML and counter-terrorist financing rules are expected at all times.
Under Isle of Man law, gambling businesses are subject to strict anti-money-laundering requirements designed to stop the misuse of betting platforms.
The commission has the power to impose civil penalties where inspections point to prima facie violations, and it publishes enforcement results to promote transparency and higher standards.
By making the findings public, the watchdog seeks to send a clear signal that failures found during routine inspections can bring financial and reputational consequences.
Although Shelgeyr no longer holds a license, the commission said former operators remain accountable for their conduct during their licensed period, especially when customer protection and crime prevention are concerned.
The Shelgeyr case adds to a growing list of enforcement actions in recent years, including striking online casino SK IOM and Celton Manx with a fine in July 2025.
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The post Isle of Man regulator fines gambling operator $273K for AML failures first appeared in ReadWrite.
