The UK Gambling Commission has announced that it contemplated suspending Evolution's gaming license due to significant breaches concerning anti-money laundering (AML) measures. This revelation comes following a recent £4.75 million settlement related to these findings. An investigation revealed that Evolution's live casino games were available on unlicensed websites accessed by UK consumers.
According to John Pierce, the director of enforcement at the Gambling Commission, the inquiry uncovered critical flaws in Evolution’s AML risk assessment and the company's management of associated risks in its supply chain. He noted, "Their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and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 when the regulator detected that Evolution's games were being supplied to unlawful operators in the UK. The company subsequently reported that its titles had been used across six unlicensed sites run by two third-party operators from December 2023 to November 2024. The commission first identified the unauthorized operation of Evolution games in August 2024 and formally notified Evolution in December.
Evolution swiftly acknowledged that its games were being accessed illegally and took measures to block UK customers from these sites. Nonetheless, the investigation found numerous breaches of license conditions, particularly those related to AML and compliance with the 2017 Money Laundering Regulations. Notably, the supplier was found lacking under License Conditions 12.1.1(1-3) and 12.1.2, with its risk assessments deemed inappropriate from April 2024 to January 2025, especially regarding the assessment of third-party risks.
The commission characterized Evolution’s inadequacies in due diligence and ongoing monitoring as serious. Pierce emphasized that the investigation revealed issues severe enough that license suspension could have been considered. However, due to Evolution’s rapid action, a suspension was ultimately not enforced.
In reaction to the findings, Evolution undertook extensive measures to restrict its games from being offered through unlicensed operators throughout 2025, which proved to be a costly measure that impacted profitability.
Evolution eventually reached a settlement with the Gambling Commission, which included a financial penalty and an agreement for an independent audit of its UK operations within a year. The company will also cover the costs incurred during the commission's investigation.
During Evolution’s Q2 earnings call, CEO Martin Carlesund reiterated that despite the regulatory settlement, the agreement would not affect the company’s UK operations moving forward. He stated, "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.
