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WorldPay fined $130k for operating without license in Colorado

WorldPay online betting news

Last Thursday, the Colorado Limited Gaming Control Commission (LGCC) gave approval to the state regulator’s decision to fine payment processing provider WorldPay a sum of US$130,000.

The fine was a result WorldPay operating without a license for a total of 13 days in the month of April. For each day the company processed payments after its license had expired, it was penalized $10,000. During that time, WorldPay handled payments for 21 different sports betting sites before ultimately calling it quits.

The fine was accepted by the corporation. It feared a disciplinary board hearing, which could have resulted in greater penalties such as license suspension or revocation, as well as a charge of $25,000 per day.

WorldPay is obligated to give $65,000 within 10 days of the commission’s approval of the arrangement. The remaining money will be put on hold for two years. If WorldPay broke any state laws or regulatory policies at that time, it would be liable for the fine.

WorldPay processed over $9.8 million in betting transactions for Colorado-based online sportsbooks from April 3-15, resulting in fees of approximately $14,737.21 in total, as stipulated in the agreement.

The Division of Gaming notified WorldPay in October, January, and February to warn the firm that its license would expire on April 2 and that it would have to renew, according to the agreement, but the authorities got no reply. The Division of Gaming and WorldPay communicated by April 12, but the firm did not take any steps to terminate activities that needed a license from the agency.

On the same day, WorldPay informed its gaming clients that it would be “pausing” its gambling-related operations in the state. The corporation stated in that letter that “an administrative license error” was to blame for the current predicament. In addition to this, the letter claimed that no complaint of misconduct had been filed against WorldPay.

During the meeting on Thursday, the Chair of the Commission, Richard Nathan, informed Joseph Watkins, the President of WorldPay Gaming Solutions, that the letter may be interpreted as the organization seeking to avoid blame for the mishap.

“I just wanted to make clear to you that this is not a mere administrative matter. It’s a matter we take seriously,” Nathan said. 

“Otherwise, you wouldn’t have been in the discussions you were in with the (Colorado) attorney general’s office and the staff of the division that gave rise to this stipulation and the requirements that you will abide by going forward for the 731 days that you’ve agreed to do so.”

Watkins told panel members Thursday that the agency emailed employees who no longer worked for the firm. However, he said WorldPay accepted responsibility for the breach.

“It is our responsibility to keep contact details up to date at all times, and it is our responsibility to know when our licenses expire and are due for renewal,” Watkins stated. 

“And that is not the Commission’s fault in any way.”

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