The UK Gambling Commission has revealed that it contemplated suspending Evolution's license after uncovering that the company’s live casino games were being made available on unauthorized websites that UK consumers could access. This follows Evolution’s recent £4.75 million settlement with the commission.
An investigation initiated in December 2024 unveiled that Evolution had not adequately implemented anti-money laundering (AML) and customer due diligence measures in the UK. John Pierce, the commission’s director of enforcement, highlighted significant deficiencies in Evolution's AML risk assessment and management of its supply chain risks. "Their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and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," he stated.
The regulator's inquiry began after it identified in August 2024 that Evolution’s games were being offered by unlicensed operators. The commission simultaneously found that these games were available across six unauthorized sites managed by two third-party operators from December 2023 to November 2024.
Upon being alerted, Evolution recognized that these games were being distributed illegally and took prompt action to block access for UK customers on the compromised sites. However, several breaches of license conditions were identified during the investigation, focusing primarily on AML compliance and the 2017 Money Laundering Regulations.
Particularly, Evolution failed to meet the criteria outlined in Licence Conditions 12.1.1(1-3) and 12.1.2, with its risk evaluations between April 2024 and January 2025 found deficient, especially in assessing third-party risks. These oversights led to the failure in identifying the unauthorized operators supplying its games to the UK market.
The commission characterized the investigation’s findings as serious enough to warrant consideration for license suspension. However, due to Evolution’s rapid responsiveness to the issues raised, such action was ultimately not taken.
In response, Evolution undertook significant measures to protect its operations across Europe in 2025, ensuring its games could not be offered by unlicensed entities. These actions incurred substantial costs, affecting the company's profitability during that year.
In the end, Evolution reached an agreement with the Gambling Commission that entailed a financial payment and mandated an independent audit of its UK license within the upcoming year, along with a contribution to the commission’s investigation expenses.
During Evolution's Q2 earnings call, CEO Martin Carlesund reassured stakeholders that the settlement would not disrupt the company's UK operations. "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."
