The UKGC Considers Suspending Evolution's License

The United Kingdom Gambling Commission (UKGC) considered suspending Evolution Gaming's license because its live casino games were offered on unlicensed websites to consumers in the UK. This was part of a recent £4.75 million settlement. The investigation revealed significant failures in Evolution's anti-money laundering (AML) and due diligence controls in the UK, according to John Pierce, the commission's director of compliance. "Evolution's AML assessment was outdated, creating a significant gap between documented controls and their actual effectiveness."

Details of the Investigation

The investigation began in December 2024 after it was discovered that Evolution's games were offered to unlicensed operators in the UK. The commission's evidence showed that its games were used on six unlicensed sites controlled by two third-party operators between December 2023 and November 2024. The commission first warned Evolution in August 2024 and formalized the notification in December 2024. Although Evolution quickly blocked British customers' access to the affected sites, its compliance with the license conditions, especially related to the 2017 anti-money laundering regulations, was evident.

Risk of License Suspension

The commission indicated that the due diligence failures and ongoing monitoring by Evolution were so severe that they considered suspending its license. Pierce emphasized that "the failures were serious enough to consider license suspension." However, this was avoided due to Evolution's "quick" response, which included significant efforts to isolate its operations in Europe during 2025, a costly endeavor that affected the company's profitability.

Regulatory Response and Settlement

Ultimately, Evolution reached a settlement with the UKGC that includes financial payment and an independent audit of its license in the coming year. It will also cover the commission's investigation costs. During the second-quarter earnings call, CEO Martin Carlesund asserted that the settlement would not affect the company’s operations in the UK. "I mean, we reached an agreement with them [UKGC]," Carlesund stated. "We will not change our way of operating in the UK for some time, and we have no upcoming changes."

This case highlights the importance of strict compliance with AML regulations, particularly given the context of increasingly stringent regulations in the UK gambling sector.