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I thought this player WAS located and working in the UK when opening his account, but was originally from the states. This had nothing to do with geographic location. I am beginning to suspect that it had something to do with identity documents being issued by the USA, making it look like a player exploiting the pound edge.
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The player never said he was in the UK, only that he had some GBPs. As far as we know he was in the USA or, if he was elsewhere, then he might have given a USA address during sign-up.
There are a number of things that were not mentioned (like why did he sign up and play at another casino without a sign-up bonus?).