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UK Gambling Commission Reviews Evolution Over Black Market Concerns

Posted on December 24, 2024 | 8:44 am
Evolution-faces-Gambling-Commission-review-over-black-market-activity-

The UK Gambling Commission has initiated a review of Evolution’s operating license following allegations that its games were provided to unlicensed operators within the country. The inquiry comes as the Commission intensifies its efforts to combat illegal gambling activities and enforce compliance among licensed operators and suppliers.

In response to the review, Evolution confirmed it is cooperating fully with the Gambling Commission. The live dealer specialist stated it has taken “requested immediate actions to remedy the situation,” including the removal of its games from the implicated illegal website. While the company has committed to working with the regulator to address the issue, it now faces potential enforcement action.

Depending on the findings of the investigation, the outcomes could range from no penalty to financial sanctions or even the suspension or revocation of Evolution’s UK license. Although the UK represents only about 3% of Evolution’s overall revenue, the case underscores the company’s commitment to compliance within regulated markets.

CEO Martin Carlesund emphasized Evolution’s dedication to regulatory adherence, 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.”

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Broader Industry Implications

The Gambling Commission’s review aligns with its broader strategy to disrupt illegal gambling activities. In a recent statement, Commission CEO Andrew Rhodes urged operators to conduct due diligence on their suppliers, highlighting the responsibility of stakeholders to prevent unlicensed traffic.

“The Commission’s strategy on combating illegal gambling is to cause as much up-stream disruption as we can,” Rhodes remarked, referencing measures targeting internet service providers, payment systems, and software suppliers.

Despite this directive, industry stakeholders have voiced concerns about the feasibility of monitoring suppliers’ activities. Representatives from trade bodies in Germany and Sweden have argued that ensuring compliance should primarily fall under the regulator’s purview.

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Evolution’s Asia Operations Under Scrutiny

The UK review follows allegations published in Josimar, claiming that Evolution had supplied services to Asia-based operators engaging in unlicensed gambling activities across Europe. Some of these operators are reportedly tied to sponsorship deals with UK Premier League football teams.

Evolution’s Q3 earnings report revealed that Asia accounts for approximately 40% of its business, a figure significantly larger than its revenue from regulated markets, which stood at 39% during the same period. A report from Regulus Partners noted that the company’s rapid growth in Asia has come under increased scrutiny, with regulatory challenges and cyber-attacks affecting its operations.

“Being on the wrong side of ‘unregulated’ markets in Asia can be a painful experience,” the Regulus report cautioned, highlighting the risks associated with operating in markets with minimal oversight.

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Evolution’s Continued Growth and Industry Leadership

Since its establishment in 2006, Evolution has revolutionized the live casino industry through its cutting-edge technology and dedication to creating immersive gaming experiences. A key milestone was the opening of its studio in Riga in 2013, which became Europe’s largest live casino operation. In 2017, the company introduced the industry’s first live game show, Dream Catcher, setting a new standard for innovation.

Today, Evolution partners with more than 800 operators globally and employs over 20,800 staff across studios in Europe, North America, and South America. Headquartered in Sweden and listed on Nasdaq Stockholm, the company remains focused on expanding its global presence while adhering to stringent regulatory requirements in key jurisdictions such as the UK, Malta, Canada, and South Africa.

Source:

“Evolution faces Gambling Commission review over black market activity“, igamingbusiness.com, December 20, 2024.

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