The UK Gambling Commission has announced it considered suspending Evolution Gaming's license after it discovered the company's live casino games were being made available on unlicensed websites accessed by UK consumers. This follows a £4.75 million settlement reached last week concerning serious anti-money laundering (AML) and customer due diligence deficiencies within the company.
John Pierce, the commission's director of enforcement, commented on the findings, stating, "This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain. Their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and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 began in December 2024, when the regulator identified that Evolution's games were offered to unlicensed operators. The inquiry revealed that from December 2023 to November 2024, Evolution's titles were utilized across six unlicensed websites managed by two third-party operators. The Gambling Commission first noted the unlicensed activity in August 2024 and formally notified Evolution in December of that year.
Although Evolution acknowledged that its games were legitimate and quickly took steps to block access for UK customers on the affected sites, the investigation found multiple breaches of license conditions, particularly concerning AML and compliance with the 2017 Money Laundering Regulations. Specific shortcomings related to Licence Conditions 12.1.1(1-3) and 12.1.2, highlighting that the company’s risk assessments during the period from April 2024 to January 2025 were inadequate, especially in evaluating risks from third parties.
The commission pointed out that these failings led to Evolution not recognizing that two operators were supplying their games in the UK without proper licenses. Additionally, the commission flagged deficiencies in Evolution’s due diligence practices and ongoing monitoring efforts. Pierce noted, "the commission's investigation and testing uncovered failings that were serious enough for us to consider licence suspension," but no suspension was enforced due to Evolution's rapid response.
To rectify the situation, Evolution undertook substantial ring-fencing initiatives across its European operations in 2025 to prevent its games from reaching unlicensed operators. However, these measures were costly and negatively impacted the company's profitability throughout that year.
After reviewing the situation, Evolution reached a settlement with the Gambling Commission, which included a financial penalty and an agreement to have its UK license independently audited within the year. The company also agreed to assist with the commission's investigation costs.
In a recent earnings call for Q2, CEO Martin Carlesund emphasized that despite the settlement, the agreement would not alter the company’s operations in the UK moving forward. "We settled with them [UKGC]," Carlesund said. "There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
