Evolution AB, a well-known provider of B2B online gaming solutions, is under investigation by the UK Gambling Commission (UKGC) for possible ties to black-market operators. The investigation, which was started in accordance with Section 116 of the Gambling Act of 2005, attempts to ascertain if Evolution’s games were accessible to unregistered UK operators.
Evolution has acknowledged the inquiry and promised complete cooperation. The company reaffirmed its commitment to assist the UK’s regulated sector by swiftly removing titles discovered on unlicensed sites. Martin Carlesund, CEO of Evolution, stressed:
“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 investigation could result in various outcomes, ranging from no action to penalties, license suspension, or even revocation.
Market Impact and Broader Implications
News of the review caused Evolution’s stock to plummet by over 10%, reflecting investor unease. While the UK accounts for just 3% of Evolution’s revenue, the investigation raises broader concerns about regulatory scrutiny in other markets.
This is not Evolution’s first regulatory challenge. The company has faced accusations of enabling unlicensed activities in regions such as Asia, which is a major revenue source. Furthermore, the Pennsylvania Gaming Control Board (PGCB) recently fined Evolution $25,000 for surveillance failures at its live dealer studio, banning 17 individuals for related violations.
The UKGC has reiterated its commitment to combating illegal gambling, urging licensed operators to vet their suppliers thoroughly. However, industry leaders argue that monitoring suppliers requires significant resources. The regulator also plans to target internet providers and payment platforms to curb unlawful gambling.
For Evolution, this investigation highlights the critical need to ensure compliance and maintain trust with regulators. While the focus is on its UK operations, the fallout could influence the company’s standing in other jurisdictions.
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