The British regulator said it will increase its surveillance after finding online casino games supplied by licensed operators on unlicensed websites.
United Kingdom.- The British Gambling Commission warned that it might conduct "test purchases" as part of its plan to step up oversight of the industry after detecting online casino games supplied by licensed operators appearing on unlicensed websites illegally available to British consumers. The announcement was made by the commission through an official warning notice on its website.
The commission discovered that, in some cases, third-party resellers distributed games supplied by operators in the illegal market, often in breach of contractual obligations. It warned that licensees might have been negligent in allowing them to do so and could jeopardize their own license. The regulator asked operators offering business-to-business (B2B) gaming solutions, including live games, live casinos, and slots, to help address the illegal market by reviewing their own practices.
"These markets are unregulated and do not offer the same safeguards required of operators," states the warning notice and continues: "They often target vulnerable customers, such as those who have self-excluded through the GAMSTOP scheme. Websites may have inadequate social responsibility and anti-money laundering (AML) controls and leave customers exposed to risks of fraud, data privacy issues, and unfair practices. Therefore, it is imperative that the commission, in collaboration with the gambling industry and key partners, take all possible measures to mitigate the risk to British consumers."
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The regulator added in its statement: "The commission advises operators to actively monitor their business relationships to ensure that no partner engages in offering illegal gambling facilities to the British market and, when identified, terminate relationships in case of non-compliance."
And concluded: "It is crucial that license holders also actively engage with the commission when such activity is identified, establishing the preventive measures taken to ensure that such activity ceases immediately. Actively notifying the commission and establishing a clear plan to mitigate the issue at a rapid pace is a minimum requirement."
