UKGC commences probe into Evolution's license

Evolution AB, one of the largest manufacturers of online casino games in the gambling industry, has revealed in a press statement that it has been targeted by an investigation by the UK Gambling Commission, the watchdog in the United Kingdom.

Evolution comes under scrutiny in the United Kingdom

In a press statement, the company said that the regulator had commenced a review of Evolution Malta Holding Limited’s operating license under Section 116 of the Gambling Act 2005.

These particular proceedings have to do with the fact that Evolution’s casino games have been accessible from the United Kingdom through operators that were not currently licensed to run their gambling platforms in the country. Evolution CEO Martin Carlesund had this to say when commenting on the case:

"Evolution embraces the objectives of the review by the Commission. We are committed to supporting the licensed UK market as well as preventing unlicensed traffic. We are now taking forceful action using all technical tools available to us to ensure that our games are only 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."

Other jurisdictions, such as Sweden, hold suppliers responsible for instances where their business clients target local players without the necessary permit to do so by Spelinspektionen, the country’s gambling regulator.

Evolution has said that the review could have a range of outcomes, such as conditions being imposed on the license, or a financial sanction, or in more extreme cases – a suspension or revocation of the license to operate in the country, which is a very unlikely scenario.

It would still mean a lot for the company, as it generates about 3% of its revenue from the United Kingdom. Evolution, however, remains optimistic and has offered full cooperation with the regulator and has taken immediate action to remedy the situation. The games provided by unlicensed operators have been made unavailable and the company is actively liaising with the watchdog to ensure further compliance is established.

Evolution is no stranger to unfounded allegations

Evolution has been dealing with such black-market operations for several years now. Previously in 2021, anonymous parties circulated reports to the media, insisting that Evolution had offered its games to more such unlicensed operators in multiple jurisdictions, a claim that Evolution has flatly denied.

The claim reduced the company’s market value by $3bn at the time. Evolution has successfully fought those allegations, having proved its innocence in a New Jersey Division of Gaming Enforcement investigation that failed to establish wrongdoing on the part of the company.

Regardless, since those allegations began to swirl, the company has been working to painstakingly streamline its partnerships and business model, ensuring that any party that purchases its products is fully responsible for local market compliance.

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