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Supplier giant Evolution’s UK licensing status has been put under formal review after the Gambling Commission identified Evolution games being offered in the UK through unlicensed operators.
Stockholm-listed Evolution acknowledged the review of its UK operating licence in a statement late on Friday evening, in which the company said it has already taken the “requested immediate actions to remedy the situation” by ensuring its games are no longer available on the unlicensed websites identified by the UK regulator.
Under Sections 116 and 117 of the , the Gambling Commission can commence a licence review when it suspects a licensing condition has been breached, or the licence-holder may no longer be suitable.
A review triggers a formal investigation process and can lead to a licence being suspended, revoked or subject to specific conditions, a financial penalty being imposed, or alternatively no action being taken.
In its brief statement, Evolution said 3 percent of its revenue currently comes from the UK and that the company was cooperating fully with the licence investigation.
“We are committed to supporting the licensed UK market as well as preventing unlicensed traffic,” stated Martin Carlesund, Evolution’s Group CEO. “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 licensed operators.”
A Gambling Commission spokesperson told žž GamblingCompliance that the regulator had no additional comment beyond Evolution's own statement.
However, the news comes after Gambling Commission CEO Andrew Rhodes last month told a gathering of industry executives that the regulator’s strategy in tackling illegal gambling was now increasingly focused on “upstream disruption”, including through software suppliers that may support unlicensed operators.
“I said to you last year that I wanted to encourage you to use your commercial influence with any partner or supplier you have to ensure they were taking all the relevant steps to verify they were not supporting illegal activity facing into [Great Britain].
“I’m going to go one step further than that today and 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,” Rhodes said in his November 14 .
The UK regulator’s probe into Evolution also appears to confirm a broader trend of B2B suppliers becoming subject to heightened scrutiny over whether their content is available through unlicensed operators in addition to regulated platforms.
The Swedish Gambling Authority earlier this year fined several licensed B2B suppliers after their game content was found available on unlicensed websites that were active in the Swedish market.
The Michigan Gaming Control Board also has obliged suppliers to provide additional disclosures regarding unregulated markets as part of the state’s licensing process.
Evolution announced in February that New Jersey's Division of Gaming Enforcement had decided to take no further action following a lengthy investigation into allegations made via a law firm that Evolution's games were being offered in various international jurisdictions where online gambling is illegal.
The company is currently undergoing suitability reviews by regulators in several other U.S. states, including Nevada, as a result of its pending acquisition of table-games supplier Galaxy Gaming.
