VGC Leeds Limited, trading as Global Gaming Ventures, will pay the money as part of a regulatory settlement agreed with the Commission.
A public statement details failings in the way VGC identified and managed customers who were at higher risk of money laundering and gambling-related harm.
Helen Venn, Commission Executive Director, said: “These failings were identified as part of our ongoing drive to raise standards across the whole gambling industry.
“All operators should be very aware that we will not hesitate to take action against those who fail to follow rules that are in place to make gambling safer and prevent it being a source of crime.
‘Consumer protection should be an operator’s main priority and we would advise every gambling business to read today’s public statement so they do not make the same mistakes as VGC.”