The UK Gambling Commission (UKGC) has issued a stern warning to licensed operators after discovering that their on line casino video games have been showing on unlicensed web sites accessible to British customers. This improvement has prompted the Commission to take a stronger stance in opposition to unregulated playing operations, emphasizing the dangers they pose to customers and the potential penalties for license holders.
Unlicensed playing platforms don’t adhere to the stringent regulatory requirements imposed on licensed operators in Great Britain. These unauthorized websites typically lack important safeguards, together with social duty measures and Anti-Money Laundering (AML) controls, leaving customers susceptible to fraud, knowledge privateness breaches, and irresponsible playing practices. The UKGC highlighted the truth that such websites steadily goal people who’ve self-excluded through schemes comparable to GAMSTOP.
The duty of B2B operators
The UKGC has recognized that some licensed operators’ gaming merchandise, together with stay on line casino video games and slots, are being provided to unlawful operators by means of third-party resellers. In many circumstances, these resellers have violated contractual obligations, and licensed operators might have been negligent in stopping their merchandise from being misused. The Commission has made it clear that licensees should take higher duty in overseeing their enterprise relationships and should guarantee they aren’t not directly supporting unlicensed playing.
Operators offering Business-to-Business (B2B) gaming options have been urged to:
- Conduct thorough due diligence on suppliers and third-party companions.
- Actively monitor for unauthorized distribution of their merchandise.
- Immediately terminate relationships with non-compliant companions.
Failure to handle these points might end in regulatory motion, together with fines, suspension, or revocation of their licenses.
Test buying and proactive measures
To sort out this rising situation, the Commission has introduced plans to conduct covert take a look at buying operations to determine potential regulatory breaches. These operations will assist collect proof in opposition to these discovered to be supplying video games to unauthorized markets.
The UKGC has additionally known as upon operators to actively collaborate by reporting any suspicious exercise and outlining the steps taken to stop unauthorized distribution. Engaging with the Commission and offering a transparent motion plan to rectify any points might be thought of a minimal compliance requirement.
Andrew Rhodes, CEO of the UKGC, emphasised the Commission’s unwavering dedication to combating unlawful playing markets. Speaking on the International Association of Gaming Advisors (IAGA) webinar, Rhodes harassed the significance of accountability throughout 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 trade stakeholders have voiced considerations concerning the challenges of monitoring third-party resellers successfully. Legal consultants have identified that monitoring the complete distribution community of suppliers could be complicated, notably when suppliers function throughout a number of jurisdictions. However, the UKGC stays agency in its stance, reiterating that operators should take proactive steps to make sure compliance.
The Betting and Gaming Council (BGC) has expressed its assist for the Commission’s stance, confirming that its members stay dedicated to sustaining compliance and avoiding partnerships with entities linked to unlawful operations.
Future regulatory focus
As a part of its broader regulatory efforts in 2025, the UKGC plans to tighten its oversight of suppliers, with a spotlight on figuring out and disrupting upstream sources of unlawful playing actions. The Commission’s enforcement technique contains working with web service suppliers (ISPs) and cost processors to restrict entry to unauthorized playing platforms.
Operators and suppliers are urged to remain forward of regulatory modifications and implement stronger compliance measures to keep away from potential authorized and monetary repercussions. The UKGC has reiterated that failure to satisfy these necessities might end in swift and extreme enforcement motion.
Source:
Industry warning notice: Licensed software appearing on illegal market, gamblingcommission.gov.uk, January 20, 2025.
