The UK Gambling Commission has indicated that it considered suspending Evolution’s license due to concerns over the company's live casino games being offered on unlicensed websites accessible to UK consumers. This revelation comes in the wake of a £4.75 million settlement between Evolution and the commission reached last week, after an investigation revealed that the supplier failed to implement adequate anti-money laundering (AML) measures and customer due diligence controls in the UK.
John Pierce, the commission’s director of enforcement, remarked on the investigation, stating, "This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain." He pointed out that “their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and their real-world effectiveness.”
The investigation was initiated in December 2024, triggered by the discovery that Evolution’s games were supplied to unlicensed operators in the UK. It was found that Evolution’s titles operated across six unlicensed websites managed by two third-party operators from December 2023 to November 2024.
The commission noted it first observed Evolution games lacking proper authorization back in August 2024 and formally notified the company in December. In response, Evolution recognized that the games in question were legitimate and promptly restricted access for UK customers on the affected sites.
Despite this action, the inquiry revealed several breaches of license conditions, particularly regarding AML compliance as outlined in the 2017 Money Laundering Regulations. Specifically, shortcomings were identified under Licence Conditions 12.1.1(1-3) and 12.1.2. The evaluation of risks performed by Evolution between April 2024 and January 2025 was deemed inadequate, especially concerning third-party risk assessments, which led to failures in identifying that two operators were supplying their games unlawfully in the UK market.
Pierce stressed the severity of the failures: "the commission's investigation and testing uncovered failings that were serious enough for us to consider licence suspension." However, due to Evolution's prompt response, a suspension was not executed.
Following the investigation, Evolution undertook significant measures to fortify its operations across Europe in 2025, ensuring that its games would no longer be accessible via unlicensed operators. These enhancements were costly and negatively impacted the company's profitability throughout the year.
In the end, Evolution came to a settlement with the Gambling Commission, which included the financial penalty and a mandate for an independent audit of its UK licence within the next year. The company will also cover part of the commission's investigation expenses.
During Evolution's Q2 earnings call last week, CEO Martin Carlesund reassured stakeholders that the settlement would not disrupt the company's operations in the UK, stating, "We settled with them [UKGC]. There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
