Gambling Commission warns licensed providers found on illegal casinos will be punished

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The UK Gambling Commission has sent a warning to the industry that the prevalence of licensed software in the underground market needs to be eradicated. 

The Commission is aware of certain casino games supplied by licensed partners appearing on illicit gambling websites, without due oversight or protection for users in the British market. 

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Cracking down on the black market of betting is a key pillar in the Commission’s objective to remove gambling as a source of income for criminal groups. This is clearly a substantial task for the regulatory body, but it is determined to disrupt the illegal activity at scale; and as much as possible. 

In addition to stemming the flow of proceeds to the criminal underworld, the Commission is particularly concerned about the absence of safeguards for users in this unregulated space. 

There is no responsibility or accountability for unlicensed operators, who are known to target vulnerable customers, including those who have previously self-excluded via tools such as GAMSTOP. 

There is simply little to no concept of responsible gambling and player protection in the unregulated market. Further risks are apparent including AML controls and the potential for users to be susceptible to fraud, data leaks and a lack of overall customer care. 

In the face of this substantial threat, the Commission is taking steps to do what is required, with the industry asked to step up and play its part.

It has asked operators to be cognisant of third-party entities acting as a source of gaming content to the illicit market, whether intentional or not. The body has found this route to be a source of licensed software making its way to the underground space and often contravening contractual obligations. 

B2B providers of gaming services such as slots, live dealer titles and other online casino games have been advised to pay particular attention to this issue, as negligence could lead to operators placing their licences in jeopardy.

The Commission has outlined steps to be taken, to monitor relationships to ensure partners are not involved in any illicit activity and if so, for immediate steps to be taken to terminate business agreements and raise the alarm with the Commission.

Gambling Commission CEO Andrew Rhodes emphasised the need for the sector to carry out ongoing due diligence to ensure licences are not compromised. He warned that operators will also be impacted if a partner’s licence is removed:

“If they’re supplying operators obviously those services stop immediately as well. I would say to anyone relying on a third party, they need to be comfortable they are not facing that risk and, if you think you are, I would say you should be doing something about it,” said Rhodes.

This year will see the Commission step up its efforts to combat the underground gambling market using different methods. This will include covert surveillance, test purchases and other means to identify rogue operators and those who are facilitating their services.