The online gambling operator Gameys are to pay £1.2m as the failed to prevent gambling harm and breached money laundering regulations.
The Gambling Commission investigations revealed that Gamesys failed to comply with money laundering regulations.
Gamesys as part of the settlement will return £460,472 of stolen money to victims and £690,000 as a payment in lieu of a financial penalty.
The Commission investigated the gambling firm after police found three people had spent stolen money with the online gambling firm.
Gambling Commission executive director Richard Watson said, “It is vital that operators understand their customers – track their online gambling and step in quickly when they suspect someone is suffering from gambling harm.
“These key steps and processes ensure they meet both their anti-money laundering and social responsibility obligations for all customers.
“Gamesys’ approach resulted in a variety of failings and saw stolen money flowing through the business, with customers being put at risk of gambling-related harm.”