UK Regulator Considered Suspending Evolution Licence Over AML Failings

UK Gambling Commission Considered Suspending Evolution Licence – AML Failings Led to £4.75m Settlement

Key Takeaways

• The UK Gambling Commission considered suspending Evolution’s licence after its games were found on unlicensed websites accessible to UK consumers.
• The regulator identified serious weaknesses in Evolution’s anti-money laundering controls and supply chain oversight.
• Evolution’s titles were available on six unlicensed sites run by two third-party operators between December 2023 and November 2024.
• The company agreed to a £4.75m settlement, an independent audit of its UK licence, and payment of investigation costs.
• Evolution carried out ring-fencing measures in 2025 to prevent its games from being supplied via unlicensed operators.

Investigation Triggered by Games on Unlicensed UK Sites

The UK Gambling Commission has disclosed that it considered suspending Evolution’s operating licence after discovering that the supplier’s live casino games were being offered on unlicensed websites accessible to UK customers.

The regulator opened its investigation in December 2024. This followed the identification of Evolution titles being provided by unlicensed operators in the UK market. According to the Commission, its initial detection of unauthorised activity occurred in August 2024. Evolution was formally informed in December of that year.

Evolution later reported that its games had been used across six unlicensed sites operated by two third-party companies. The activity took place between December 2023 and November 2024. After being notified, Evolution acknowledged that the games in question were genuine products and moved to block access for UK customers on the affected websites.

For users of regulated gambling platforms, this case highlights how licensed suppliers can face regulatory action if their products appear on sites that do not hold the required authorisations.

AML and Supply Chain Weaknesses Identified

Beyond the presence of games on unlicensed websites, the Commission’s investigation uncovered broader compliance failures. These related to Evolution’s anti-money laundering framework and customer due diligence obligations under the 2017 Money Laundering Regulations.

John Pierce, the Commission’s director of enforcement, stated that the investigation exposed serious weaknesses in Evolution’s AML risk assessment and oversight of risks within its supply chain. He said the company’s AML assessment was outdated and did not adequately consider the risks posed by unlicensed operators distributing its games.

The regulator found shortcomings under Licence Conditions 12.1.1(1-3) and 12.1.2. Risk assessments conducted between April 2024 and January 2025 were deemed inappropriate, particularly in relation to third-party risk evaluation. According to the Commission, these deficiencies contributed to Evolution not identifying that two operators were supplying its games into the UK without holding the necessary licences.

The Commission also described Evolution as deficient in due diligence measures and ongoing monitoring of its distribution network. For operators and suppliers active in regulated markets, these findings underline the expectation that compliance controls must extend beyond direct operations to include third-party relationships.

Licence Suspension Considered but Not Imposed

The seriousness of the identified failings led the Commission to consider suspending Evolution’s licence. Pierce stated that the investigation and regulatory testing uncovered failings that were serious enough for licence suspension to be an option.

However, the Commission ultimately decided not to suspend the licence. It cited Evolution’s swift response after being notified of the issues. The company took steps to block UK access to the affected sites and later implemented broader compliance measures.

In 2025, Evolution carried out extensive ring-fencing efforts across its European operations. The objective was to ensure that its games could no longer be provided through unlicensed operators. The company reported that these measures were particularly costly and had a negative impact on profitability throughout 2025.

For businesses supplying content across multiple jurisdictions, the case demonstrates how distribution controls and geo-blocking measures can become central to regulatory compliance assessments.

Settlement Terms and Ongoing Compliance Requirements

The matter concluded with Evolution agreeing to a settlement with the UK Gambling Commission. The agreement includes a financial payment of £4.75m and a requirement that the company’s UK licence be independently audited within the next year. Evolution will also contribute to the regulator’s investigation costs.

During the company’s Q2 earnings call last week, CEO Martin Carlesund addressed the outcome. He stated that the settlement would not lead to changes in the way Evolution operates in the UK and that no operational changes were forthcoming in that market.

The requirement for an independent audit places Evolution under continued regulatory scrutiny in the UK. For operators and platform users, the outcome means the company retains its licence but remains subject to additional oversight.

Regulatory Implications for the UK Market

The Commission’s public update emphasises the importance it places on AML compliance and supply chain monitoring. By highlighting weaknesses in third-party risk assessment, the regulator has clarified that licensed suppliers are expected to identify and mitigate the risk of their products being distributed by unlicensed entities.

For UK-facing gambling platforms, the case reinforces that holding a licence involves ongoing obligations that extend to business partners and distribution channels. The presence of licensed games on unlicensed sites can trigger enforcement action, even where the supplier does not directly operate those websites.

Users comparing regulated and unregulated platforms may also view such enforcement actions as an indicator of how closely the UK market is monitored.

Our Assessment

The UK Gambling Commission considered suspending Evolution’s licence after finding its games on unlicensed UK-facing websites and identifying serious AML and supply chain control weaknesses. The case resulted in a £4.75m settlement, an independent audit requirement, and additional compliance measures, while allowing Evolution to continue operating in the UK under regulatory oversight.