The United Kingdom Gambling Commission has issued a strong warning to the gambling industry following the discovery of licensed casino games being made available on unregulated websites targeting British consumers. The regulator has emphasized the urgency of addressing this issue to safeguard consumers and uphold regulatory standards.

The Commission has highlighted the significant risks posed by unlicensed gambling websites, which do not adhere to the strict regulations required of licensed operators. These platforms lack critical safeguards, including social responsibility measures and anti-money laundering (AML) controls, leaving consumers vulnerable to fraud, data breaches, and unfair practices. Of particular concern is the fact that such platforms often target individuals who have self-excluded through services like GAMSTOP, undermining responsible gambling efforts.

The regulator stressed that the presence of licensed games on these illegal sites could erode trust in the legal market and increase financial and personal risks for players. As part of its ongoing efforts, the Commission has called on licensed operators to review their business practices and take immediate steps to prevent their games from being accessed on unauthorized platforms.

Responsibilities of B2B Providers

The Commission has identified third-party resellers as a key source of the problem, with some distributing licensed gaming content to the unregulated market without appropriate authorization. Business-to-business (B2B) gaming providers, including those offering slots and live casino games, have been urged to conduct thorough audits of their distribution channels and contractual agreements to ensure compliance.

Failure to address such breaches, the regulator warns, could result in severe consequences, including regulatory action against licensees who are found to be negligent. Operators are advised to actively monitor their partners and terminate relationships with any entities found to be engaging in unauthorized distribution.

Proactive Measures and Industry Cooperation

The Gambling Commission has made it clear that it expects full cooperation from the industry in tackling this issue. Operators are encouraged to report any identified breaches promptly and outline their action plans to prevent further occurrences. Engaging with the Commission transparently and taking swift corrective measures are considered essential steps in maintaining compliance.

To reinforce its stance, the regulator has announced its intention to conduct test purchases and other investigative measures to identify potential violations. This proactive approach is intended to deter illegal activity and ensure that the industry operates within the legal framework.

A recent example of regulatory scrutiny involved Evolution, which faced an investigation after its games were discovered on unauthorized sites. The company responded by removing the content and implementing IP-blocking measures to prevent further access by unlicensed operators. The investigation remains ongoing, and potential penalties may include additional licensing conditions or revocation.