The UK Gambling Commission (UKGC) has issued a stern warning to licensed operators after discovering that their casino games have been appearing on unlicensed websites available to British consumers. This development has prompted the Commission to take a stronger stance against unregulated gambling operations, emphasizing the risks they pose to consumers and the potential consequences for license holders.
Unlicensed gambling platforms do not adhere to the stringent regulatory standards imposed on licensed operators in Great Britain. These unauthorized sites often lack essential safeguards, including social responsibility measures and Anti-Money Laundering (AML) controls, leaving consumers vulnerable to fraud, data privacy breaches, and irresponsible gambling practices. The UKGC highlighted the fact that such sites frequently target individuals who have self-excluded via schemes such as GAMSTOP.
The responsibility of B2B operators
The UKGC has identified that some licensed operators’ gaming products, including live casino games and slots, are being supplied to illegal operators through third-party resellers. In many cases, these resellers have violated contractual obligations, and licensed operators may have been negligent in preventing their products from being misused. The Commission has made it clear that licensees must take greater responsibility in overseeing their business relationships and must ensure they are not indirectly supporting unlicensed gambling.
Operators providing Business-to-Business (B2B) gaming solutions have been urged to:
- Conduct thorough due diligence on suppliers and third-party partners.
- Actively monitor for unauthorized distribution of their products.
- Immediately terminate relationships with non-compliant partners.
Failure to address these issues could result in regulatory action, including fines, suspension, or revocation of their licenses.
Test purchasing and proactive measures
To tackle this growing issue, the Commission has announced plans to conduct covert test purchasing operations to identify potential regulatory breaches. These operations will help gather evidence against those found to be supplying games to unauthorized markets.
The UKGC has also called upon operators to actively collaborate by reporting any suspicious activity and outlining the steps taken to prevent unauthorized distribution. Engaging with the Commission and providing a clear action plan to rectify any issues will be considered a minimum compliance requirement.
Andrew Rhodes, CEO of the UKGC, emphasized the Commission’s unwavering commitment to combating illegal gambling markets. Speaking at the International Association of Gaming Advisors (IAGA) webinar, Rhodes stressed the importance of accountability within the licensed sector, stating, “I do not understand why anyone in the licensed industry would want to be in business with a company that is supporting illegal competition—it makes no sense to me at all.”
Industry challenges and responses
Despite the regulatory efforts, some industry stakeholders have voiced concerns about the challenges of monitoring third-party resellers effectively. Legal experts have pointed out that tracking the full distribution network of suppliers can be complex, particularly when suppliers operate across multiple jurisdictions. However, the UKGC remains firm in its stance, reiterating that operators must take proactive steps to ensure compliance.
The Betting and Gaming Council (BGC) has expressed its support for the Commission’s stance, confirming that its members remain committed to maintaining compliance and avoiding partnerships with entities linked to illegal operations.
Future regulatory focus
As part of its broader regulatory efforts in 2025, the UKGC plans to tighten its oversight of suppliers, with a focus on identifying and disrupting upstream sources of illegal gambling activities. The Commission’s enforcement strategy includes working with internet service providers (ISPs) and payment processors to limit access to unauthorized gambling platforms.
Operators and suppliers are urged to stay ahead of regulatory changes and implement stronger compliance measures to avoid potential legal and financial repercussions. The UKGC has reiterated that failure to meet these requirements could result in swift and severe enforcement action.
Source:
Industry warning notice: Licensed software appearing on illegal market, gamblingcommission.gov.uk, January 20, 2025.