The UK Gambling Commission (UKGC) has launched a review of Evolution Malta Holding Limited’s operating licence. This review follows concerns that Evolution’s games were accessible in the UK through operators not holding the required UKGC licence.
The review is being conducted under Section 116 of the Gambling Act 2005, which empowers the Commission to investigate compliance breaches. Potential outcomes range from no action being taken to financial penalties, suspension or even Evolution’s licence to operate in the UK being revoked.
Evolution assured of its cooperation with the Commission. They said that they had taken swift action to address the issue and had already ensured that games on the identified unlicensed websites were no longer accessible in the UK market.
“Evolution embraces the objectives of the review by the commissions,” said Martin Carlesund. CEO of Evolution. “We are committed to supporting the licenced UK market as well as preventing unlicenced traffic.
“We are now taking forceful action using all technical tools available to us to ensure that our games only are available in the UK through Commission licenced operators and believe that 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.”
The UK market accounts for approximately 3 percent of Evolution’s revenue, making the UK significant, but not critical, to the company’s overall financial health.
UKCG crackdown on illegal activity
This review aligns with the UKGC’s wider strategy to combat illegal gambling activity and its supply chain. At the UKGC CEO Briefing last month, CEO Andrew Rhodes urged licenced operators to exercise greater due diligence to their partnerships with suppliers. In his speech, Rhodes highlighted progress in industry compliance, noting improvements in how operators implement policies and intervene with at-risk customers. He pointed to the reduction in high-speed spending without proper checks, but raised concerns about uneven compliance levels across the industry.
In the UKGC CEO Briefing, Rhodes said, “I strongly suggest you all undertake due diligence to ensure none of your suppliers are directly or indirectly engaged in supporting unlicensed activity in this market. The Commission’s strategy on combatting illegal gambling is to cause as much up-stream disruption as we can, which is why we have focussed on ISPs, payment providers, search engines, software suppliers and more.”
A shock recent Sky News investigation revealed that illegal online casinos are using one of the most popular video games in the world, Roblox, to lure children as young as 12 into the unlicenced gambling sphere. This news and other negative headlines further intensify the UKGC’s commitment to enforce compliance at all levels of the industry. Through targeting suppliers and their networks, the Commission seeks to ensure that unlicenced gambling operators are effectively cut off from access to UK customers.
Maintaining regulatory integrity
For Evolution, this review presents an excellent opportunity to strengthen its commitment to compliance and player protection. Their proactive response, including cooperation with the UKGC and immediate actions to block unlicenced access, suggests a focus on maintaining its standing in the regulated market. With an 11 percent fall in share price, Evolution needs to maintain its reputation and integrity, especially as regulation, problem gambling and higher tax burdens on the gambling industry are all under much scrutiny throughout Europe.
The UK Gambling Commission’s 2024 Young People and Gambling report revealed a troubling rise in gambling participation and the associated risks among young people. There isn’t just an urgent need to safeguard and protect young people from the risks of addiction. Full compliance is required across all sectors of the gambling industry.
The entire industry will closely monitor the outcome of this review, as it may set a precedent for how regulators address supplier accountability in ensuring compliance with regulators. With the doubling down on its enforcement strategies, the message to suppliers and operators is clear – strict adherence to regulatory frameworks is non-negotiable.
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