UK Gambling Commission Investigates Evolution Over Links to Unlicensed Operators
The UK Gambling Commission has initiated a review of Evolution’s operating licence in the UK after discovering its games were being offered on unlicensed platforms within the country. The investigation raises concerns about compliance and potential penalties for the live gaming supplier.
Details of the Investigation
Evolution, a leading live casino game provider, confirmed it is cooperating fully with the regulator and has implemented immediate measures to address the issue. The company stated that its games have been removed from the illegal platforms and pledged to work closely with the Commission to resolve the matter.
Despite these actions, the company faces the risk of enforcement measures, including financial penalties or the suspension or revocation of its UK licence. The outcome of the review is yet to be determined. Evolution reported that approximately 3% of its revenue comes from the UK market.
CEO’s Statement
Martin Carlesund, CEO of Evolution, reaffirmed the company’s commitment to the regulated UK market, stating:
“We are now taking forceful action using all technical tools available to us to ensure that our games are only available in the UK through Commission-licensed operators. We believe that a close collaboration to address our joint concerns will lead to swifter and better results. As always, we remain committed to an open and transparent relationship with our regulators.”
Gambling Commission’s Focus on Compliance
The Gambling Commission has been urging operators to monitor their supplier partnerships more rigorously. In November, Andrew Rhodes, CEO of the Commission, emphasized the importance of disrupting illegal gambling networks by targeting key service providers such as software suppliers and payment platforms.
However, industry stakeholders have expressed challenges in policing B2B partner actions, arguing that ensuring compliance should primarily be the regulator’s responsibility.
Broader Implications for Evolution
The investigation follows reports alleging Evolution’s involvement with unlicensed operators in Asia, which account for a significant portion of its revenue. In Q3 2023, Evolution reported that Asia contributed 40% to its business, with regulated revenues comprising 39% of its overall income.
Critics, including Regulus Partners, have warned of increased scrutiny in unregulated markets, stating, “Evolution’s period of easy Asian growth with few questions asked now seems to be over.”
The outcome of the UK Gambling Commission’s review will likely set a precedent for industry practices and could impact Evolution’s future operations in regulated markets. The case highlights the growing challenges in maintaining compliance in a globalized gambling industry.
