Evolution Malta Holding Limited has agreed to pay £4.75 million ($6.38 million) after a UK Gambling Commission investigation found its online casino games were being supplied to unlicensed gambling websites that could be accessed by consumers in Great Britain. The agreement concludes a licence review that began in December 2024 and closes a regulatory matter that lasted for more than a year while the company worked with the regulator.

The commission launched its investigation after discovering five genuine Evolution games on six websites operated by two businesses without Gambling Commission licences. Those websites attracted substantial traffic from British consumers between December 2023 and November 2024. 

Regulators identified what appeared to be Evolution titles in August 2024, informed the company in December, and Evolution confirmed the games were authentic. It then immediately blocked access for customers in Great Britain and expanded restrictions to other affected websites.

Evolution UK compliance investigation leads to multimillion-pound settlement

Investigators concluded Evolution’s anti-money laundering and counter-terrorist financing controls did not properly identify the risk that licensed customers were supplying its games to unlicensed operators targeting the British market. The commission said weaknesses in the company’s risk assessment and oversight of third parties meant the issue went undetected despite existing compliance obligations.

The regulator found breaches of licence conditions 12.1.1 and 12.1.2, covering anti-money laundering risk assessments, policies, controls and compliance with money laundering regulations. According to the commission, Evolution’s 2024 risk assessment failed to properly evaluate third-party risks, while its anti-money laundering policies lacked enough detail on due diligence and ongoing monitoring of sub-licensees in higher-risk relationships.

The body also concluded Evolution failed to adequately identify money laundering and terrorist financing risks, maintain effective controls preventing games reaching British consumers through unlicensed operators, and sufficiently meet customer due diligence requirements. It said the failings were serious enough for licence suspension to be considered but decided against that action because Evolution responded quickly once the problems were identified.

John Pierce, Commission Director of Enforcement, said: “This case exposed serious weaknesses in Evolution’s anti-money laundering risk assessment and its oversight of risks within its supply chain.

“The company’s AML risk assessment was outdated and failed to adequately consider the risk of its games being made available through unlicensed operators. As a result, there was a significant gap between the controls on paper and their effectiveness in practice.

“The Commission’s investigation and testing uncovered failings that were serious enough for us to consider licence suspension.

“Evolution responded swiftly and comprehensively once these issues were identified, taking immediate action to strengthen its controls and address our concerns. Our subsequent testing has not identified any further instances of concern.

“However, this case provides an important lesson for the industry. Operators must ensure their risk assessments are current, regularly tested and reflective of real-world risks. They need to understand who they are supplying their games to, how and where those games are being accessed in practice, and maintain effective ongoing controls that give them confidence their products are not supporting illegal gambling.”

Evolution said the two operators involved bypassed existing restrictions and breached its supply terms. The company ended both commercial relationships immediately, introduced stronger ring-fencing controls, and said regulators found no evidence during the 18-month review of unauthorized availability of its games in Britain. 

The settlement includes the £4.75 million payment in lieu of a financial penalty, an independent audit within 12 months, investigation costs and publication of agreed facts. The commission said earlier industry warnings, illegal market activity and financial benefit increased the seriousness of the case, while Evolution’s cooperation and prompt remedial action counted in its favour. At the time the review began, Evolution said the UK accounted for roughly 3% of its revenue.

Featured image: Evolution

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