UKGC goes after software providers offering their products to unlicensed operators

The United Kingdom is following in the footsteps of its Swedish homologue, sounding an alarm over the practice of software providers also selling their online casino games to unlicensed operators that target British customers without the necessary license.

Licensed suppliers’ games are offered by unauthorized websites

This, the gambling regulator – the UK Gambling Commission (UKGC) –argued, ought to stop. As part of its laser-focus ambition to uproot illegal activity at scale, the UKGC has said that suppliers who hold a license locally but are also found to be offering their games to unlicensed websites will face consequences.

The UKGC has noted that the unlicensed websites failed to live up to the industry standard set for player protection and insisted that they targeted vulnerable consumers who were already suffering and were on GAMSTOP’s self-exclusion list. A statement by the UKGC further read:

"The websites may have inadequate social responsibility and Anti-Money Laundering (AML) controls in place and leave customers open to risks of fraud, data privacy issues and unfair practices. It is therefore imperative that the Commission, in collaboration with the gambling industry and key partners take all possible steps to mitigate risk to GB consumers."

The UKGC has urged studios that work on and develop live games, live casinos, and slots to help the watchdog enforce a tighter regulatory rule by reviewing their own practices and ensuring that they do not offer their products to unlicensed operators.

The regulator has highlighted the seriousness of the issue by arguing that in some cases, third-party resellers would sell to such unlicensed parties that would, in turn, target British customers back.

The UKGC has not hesitated to point out that allowing such reselling practices that eventually make way to unlicensed operators is something that endangers the provider's own license with the commission and its right to do business.

UKGC to conduct field tests to uncover wrongdoing

Spelinspektionen, the Swedish watchdog, has already issued fines over the use of casino games by unlicensed operators targeting the country’s players. The UKGC has urged providers of casino games to "actively engage" with the regulator where the use of games by unauthorized websites has been identified.

Most of all the commission has called for preventative measures that require studios to be more attentive to whom they sell their titles to. The UKGC has cautioned that it will seek to act proactively in the matter and could potentially start trying to conduct a "test purchasing activity" to identify a similar breach, similar to how Kansspelautoriteit, the Dutch regulator, tests for unauthorized access.

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