The Gambling Commission has published further details on Evolution’s £4.75m ($6.35m) settlement with the regulator, following an investigation into how the supplier’s online casino games were made available through unlicensed gambling businesses.
The settlement follows a Commission investigation which found that Evolution games appeared on six unlicensed websites accessible to consumers in Great Britain.
The investigation found that Evolution’s risk assessment processes failed to identify that two operators it worked with were offering its games to UK customers without the required Gambling Commission licence. The regulator said the six websites received significant traffic from British consumers between December 2023 and November 2024.
In August 2024, the Commission identified what appeared to be Evolution games on the websites and notified the supplier in December 2024. Evolution confirmed the games were genuine and subsequently took action to permanently block access to the titles for UK consumers on the affected websites.
The investigation identified failings in Evolution’s anti-money laundering (AML) and risk assessment procedures, with the Commission concluding that the supplier’s controls were not effective enough to identify the risk of its games being supplied to the UK market by unlicensed operators.
The regulator said Evolution’s 2024 risk assessment did not adequately address third-party risks and also highlighted shortcomings in its due diligence, ongoing monitoring and controls designed to prevent its games from appearing on illegal gambling websites.
John Pierce, Commission Director of Enforcement, commented: "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"The company's AML risk assessment was outdated and failed to adequately consider the risk of its games being made available through unlicensed operators.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.’’
As part of the settlement, Evolution will pay £4.75m in lieu of a financial penalty, complete an independent audit of its relevant policies and procedures within 12 months and cover the Commission’s investigation costs.
The Gambling Commission said aggravating factors included illegal market activity, potential financial benefit from the breaches and risks to vulnerable consumers. However, it also recognised Evolution’s cooperation with the investigation, early acceptance of the failings and the steps it took to address the issues.
Evolution generates only a small proportion of its revenue from the UK, with the market accounting for around 3% of group revenue when the review was announced in 2024
