The UK Gambling Commission has revealed that it considered suspending Evolution's operating licence after identifying that the company’s live casino games were accessible on unlicensed websites targeting UK consumers. This announcement comes as part of an update regarding Evolution’s recent £4.75 million settlement with the Commission.
An investigation revealed that Evolution failed to maintain sufficient anti-money laundering (AML) measures and customer due diligence practices within the UK. John Pierce, the Commission’s director of enforcement, commented 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 He pointed out that the AML assessment was outdated and did not adequately evaluate the risks posed by unlicensed operators distributing their games, highlighting a significant gap between documented controls and their practical effectiveness.
The inquiry into Evolution began in December 2023 after the regulator discovered the company’s games were being supplied to unlicensed operators in the UK. Last week, Evolution reported that the Commission found its games featured on six unlicensed websites operated by two third-party providers between December 2023 and November 2024. The Commission initially detected these unauthorised operations in August 2024 and formally notified Evolution in December of that year.
In response, Evolution acknowledged the legitimacy of the games and swiftly blocked access for UK customers on the affected sites. However, the investigation also highlighted several breaches of licensing conditions, particularly concerning AML compliance and adherence to the 2017 Money Laundering Regulations.
Some specific failures cited included compliance issues under Licence Conditions 12.1.1(1-3) and 12.1.2, with concerns that the company's risk assessments conducted between April 2024 and January 2025 were insufficient, especially regarding evaluations of third-party risks. These inadequacies prevented Evolution from recognizing that two operators were offering its games in the UK market without the appropriate Gambling Commission licences.
The Commission underscored the seriousness of the findings, indicating that they were significant enough to compel consideration of licence suspension. However, because of Evolution's prompt response, suspension was not implemented.
As a result of the investigation, Evolution undertook thorough ring-fencing across its European operations in 2025 to ensure that its games could no longer be accessed via unlicensed operators, a move that was costly and affected its profitability that year.
Ultimately, Evolution reached a settlement with the Gambling Commission, which includes the financial payment and a requirement for an independent audit of its UK licence within the coming year, along with a contribution to the costs of the investigation.
During Evolution's Q2 earnings call last week, CEO Martin Carlesund reiterated that the settlement would not disrupt the company’s operations in the UK. "I mean, we settled with them [UKGC]," Carlesund stated confidently. "There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
