The UK Gambling Commission has initiated a review of Evolution's operating license in the UK, as the regulatory body discovered that the company's games were being offered to unlicensed operators in the country.
The supplier specializing in live dealers, Evolution, stated in a released statement that the company is "fully cooperating" with the Commission's efforts. The supplier added that it has "immediately taken action as required to rectify this situation".
Evolution's games have been removed from illegal websites. The company also stated that it will actively cooperate with the Commission to resolve this matter.
However, now during the holiday season, the company faces the threat of enforcement action. Depending on the review outcomes, the company might not face any penalties. Similarly, Evolution could face financial sanctions or suspension or revocation of its license in the UK.
The supplier mentioned that the UK market accounts for about 3% of Evolution's reported revenue.
Evolution "committed to supporting the UK licensed market"
Evolution CEO Martin Carlesund stated that the company agrees with the Gambling Commission's review objectives. He added that the company "is committed to supporting the UK licensed market and preventing unlicensed traffic".
"We are now taking strong measures, using all available technological means, to ensure our games are only offered in the UK through operators authorized by the Commission.
"We believe that addressing our common concerns through close cooperation will lead to faster and better outcomes. We remain committed to establishing an open and transparent relationship with regulators," he concluded.
The Commission urges operators to monitor suppliers' conduct
In November, UK Gambling Commission CEO Andrew Rhodes warned UK gambling operators to conduct due diligence on their supplier partners. He said this was to ensure they do not support black market activities.
Rhodes stated at the GC annual gambling industry CEO conference, "The Commission's strategy to combat illegal gambling is to disrupt upstream as much as possible, which is why we focus on ISPs (Internet Service Providers), payment providers, search engines, software suppliers, etc."
However, stakeholders opposed this warning, telling iGB that monitoring their B2B partners' conduct would be extremely difficult. Representatives from trade bodies in Germany and Sweden unanimously believe that it is the regulator's responsibility to ensure stakeholders are fully compliant in their licensed markets.
Evolution's activities in Asia
The latest review by the GC was published following a harsh report by Josimar, which claimed that Evolution was serving some Asian operators who offer unlicensed services across Europe. Some of these operators have sponsorship deals with a few English Premier League teams.
Evolution reported in the third quarter that its Asian business accounts for about 40% of its operations. The company also stated in the third-quarter financial report that during this period, regulated revenue accounted for 39% of the entire group. This figure is slightly lower than the 40% in the third and fourth quarters of 2023.
At that time, Regulus Partners warned in a report, "The period of easy growth for Evolution in Asia, almost unquestioned and unresponsive locally, seems to be over.
The consultant stated, "Being on the wrong side in Asia's 'unregulated' markets could be a painful experience." This comment was made in response to the targeted cyber attacks Evolution faced in Asia during this period.
