The UK Gambling Commission has revealed that it considered suspending Evolution's license after finding that the company's live casino games were made available on unlicensed websites catering to UK consumers. This revelation comes on the heels of a £4.75 million settlement reached by Evolution last week, during which the commission uncovered that the company had inadequately enforced anti-money laundering (AML) and customer due diligence measures within the UK.
John Pierce, the commission's director of enforcement, stated, "This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain." He pointed out that Evolution's AML assessment was outdated and failed to adequately address risks posed by unlicensed operators distributing its games, leading to a significant disconnect between documented controls and their practical effectiveness.
The investigation was initiated in December 2024 after the regulator discovered that Evolution's games were supplied to unlicensed operators within the UK. The commission found that between December 2023 and November 2024, Evolution's titles were being featured on six unlicensed sites operated by two third-party entities. Initially noticing the unauthorized games in August 2024, the commission formally notified Evolution in December.
Upon acknowledging the issue, Evolution quickly blocked UK customer access to the affected sites. Nevertheless, the regulator's investigation revealed multiple instances of license condition breaches, particularly concerning compliance with the 2017 Money Laundering Regulations, and highlighted shortcomings in the company’s risk assessments regarding third-party risk evaluation from April 2024 through January 2025.
The commission noted that these deficiencies prevented Evolution from recognizing that two operators were distributing its games in the UK without the appropriate Gambling Commission licenses. Pierce emphasized that the found failings were serious enough to warrant considering license suspension, but that Evolution's prompt response ultimately led to this measure not being enforced.
In reaction to the investigation, Evolution undertook extensive ring-fencing efforts across its European operations in 2025 to prevent its games from being offered via unlicensed operators. This undertaking incurred substantial costs, affecting the company's profitability that year.
Ultimately, Evolution sealed a settlement with the Gambling Commission, encompassing a financial payout as well as a commitment for an independent audit of its UK license within the forthcoming year. The company will also assist in covering the investigation's costs.
During Evolution's Q2 earnings call last week, CEO Martin Carlesund emphasized that despite the regulatory settlement, its UK operations would remain unchanged. "I mean, we settled with them [UKGC]," Carlesund stated. "There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
