The UKGC initiated a review under Section 116 of the Gambling Act 2005 to determine whether unlicensed operators in the UK can access Evolution’s games
Evolution AB, a leading B2B online casino solutions company, is under investigation by the UK Gambling Commission (UKGC) due to claims of black-market activity.
Evolution Pledges Support for UK’s Regulated Market During UKGC Review Process
The UKGC started the review under Section 116 of the Gambling Act 2005 to check if unlicensed operators in the UK could access Evolution’s games. Evolution has recognized the investigation and has committed to cooperating.
Evolution says it has taken down all games found on unlicensed platforms right away. The company stressed its dedication to backing the UK’s regulated market and stopping unauthorized access. Evolution CEO Martin Carlesund stated:
“We are now taking forceful action using all technical tools available to us to ensure that our games only are available in the UK through Commission licensed operators. We believe that a close collaboration to address our joint concerns will lead to swifter and better results. As always we remain committed to an open and transparent relationship with our regulators.”
The UKGC review could end in many ways, from no action to tougher steps like fines, operating rules, or even putting Evolution’s UK license on hold or taking it away.
Evolution’s Stock Plummets Over 10% Amid UK Regulatory Investigation
Even though the UK market makes up just 3% of Evolution’s total earnings, the probe has made investors worried. Evolution’s stock took a big hit falling more than 10% when news of the review came out. Experts say this could have wider effects, with worries that the regulatory checks might sway other countries.
This investigation comes at a tough time for Evolution. The company has already faced claims of helping unlicensed activities in other parts of the world such as Asia, which brings in a lot of its revenue. Additionally, the Pennsylvania Gaming Control Board (PGCB) recently fined Evolution $25,000 for a surveillance lapse at its live dealer studio and banned 17 individuals for various violations.
The UKGC has spoken out about its pledge to stop illegal gambling operations. It has asked licensed operators to check their suppliers, a job industry players say is tricky and needs a lot of resources. The regulator has stressed its aim to go after groups like internet providers and payment companies to try to stop illegal gambling.
For Evolution, a lot hangs in the balance. While the current issue is about its UK business, the probe has brought up bigger concerns about following rules and dealing with regulators.
