The regulator warned that content and software from licensed gambling providers appears on illegal platforms and targets customers
The UK gambling regulator, the Gambling Commission, recently issued a warning after uncovering licensed gambling software appearing on illegal platforms targeting customers in Great Britain.
Illegal Gambling in the Sights of the Gambling Commission
On Monday this week, the Commission warned that it has identified content by licensed gambling operators on unlicensed, illegal gambling platforms. The gambling watchdog urged licensees to closely monitor the offering of their content, especially when it comes to deals with third-party companies.
The gambling regulator explained that malpractice was observed which involved the distribution of games and content from licensed gambling providers, also known as business-to-business (B2B) operators, to providers operating without a license. This distribution was facilitated by third-party resellers, which by providing the content of a licensed B2B supplier to an illegal operator breach their contractual obligations, the gambling watchdog explained.
However, the Commission warned that such negligence may put the B2B providers’ licenses at risk. Not unexpectedly, the regulatory body encouraged B2B licensees to closely monitor their collaborations with operators and suppliers to ensure their content isn’t distributed to illegal gambling platforms targeting British customers. In case such content by a provider is delivered without its permission to third-party illegal platforms, companies are encouraged to terminate such business relationships.
“The Commission has found that, in some instances, third party resellers are distributing games supplied by operators to the illegal market, often in breach of their contractual obligations. Commission licensees may have been negligent in allowing them to do so and in the process, place their own license at risk,“
the Gambling Commission explained in a statement
Customers Using Illegal Gambling Operators Are at Risk
The latest announcement comes after recently, the gambling watchdog hinted at plans for stricter enforcement for gambling content and technology suppliers. Earlier this month, the Commission’s chief executive, Andrew Rhodes, said that combatting unlicensed gambling and crackdown on suppliers working with illegal operators will be one of the regulator’s objectives in 2025.
In that line of thought, upon issuing the latest warning, the Commission reiterated why the illegal sector poses danger to consumers. The gambling regulator explained that, unlike licensed operators, illegal providers do not offer the same customer safeguards. It added that often, illegal providers target people who have self-excluded from gambling by participating in GAMSTOP for example.
“It is therefore imperative that the Commission, in collaboration with the gambling industry and key partners take all possible steps to mitigate risk to GB consumers,“
the Gambling Commission added
Besides targeting vulnerable audiences, illegal gambling operators “may have inadequate social responsibility and Anti-Money Laundering (AML) controls in place and leave customers open to risks of fraud, data privacy issues and unfair practices,” the Commission wrote. Finally, the regulator vowed to continue its collaboration with the regulated gambling industry and fight against illegal offering that poses a threat to consumers across the country.
