UKGC Calls on Operators to Help Combat Illegal Gambling
The UK Gambling Commission has issued an industry warning notice over licensed software appearing on unlicensed sites.
It warned that recent investigations found that online casino games supplied by licensed operators are being offered on unregulated websites that are accessible to British players. These black-market casinos operate outside the framework of UK regulations, and as such, may fail to provide the protections that licensed operators must offer players.
Many of these websites target vulnerable individuals, including those who have self-excluded through the GAMSTOP scheme. Without proper social responsibility measures or Anti-Money Laundering (AML) controls, there is a greater risk of fraud, privacy breaches, and exploitative practices. As such, the UKGC says that there is an urgent need for industry stakeholders to work together to combat these risks to players.
The Role of B2B Operators
The Commission spoke of the role of Business-to-Business (B2B) gaming providers, which offer products such as live casino games and slots. In some cases, third-party resellers have distributed these products to the black market, usually in breach of contractual agreements, which could jeopardize the operators’ own licenses.
As such, the Commission advises licensees to carefully monitor their partnerships and ensure their games are not used for illegal gambling purposes. Where violations are identified, operators are warned that they must end their relationships with non-compliant partners or risk sanctions.
Additionally, the UKGC said that operators are expected to proactively engage with the Commission by reporting any identified violations. They should outline the preventive steps being taken to stop such activities and demonstrate a clear, rapid response plan. In its warning, the Commission said that it views such communication as a minimum licensing requirement.
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Proactive Measures to Ensure Compliance
To ensure compliance, the Commission has said that it is adopting a proactive stance and that it may carry out test purchasing operations at any point to uncover breaches.
The UKGC concluded its industry warning by calling on the gambling industry to support its efforts by monitoring the market for illegal activities and reporting any suspicious behavior as soon as it arises.
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