UKGC Considered Suspending Evolution Licence Over AML Failings

Key Takeaways:

UKGC considered suspending Evolution's licence due to AML failings.
Evolution's live casino games were found on unlicensed UK websites.
Investigation revealed inadequate anti-money laundering and due diligence controls.
Evolution overlooked supply chain risks, leading to black market distribution.
The company's AML risk assessment was deemed outdated and insufficient.
Evolution agreed to a settlement, including a financial payment and independent audit.
Swift response from Evolution prevented the licence suspension.
Extensive ring-fencing efforts impacted Evolution's 2025 profitability.

The UK Gambling Commission considered suspending Evolution’s licence after discovering the company’s live casino games were being offered on unlicensed websites accessible to UK consumers. This consideration followed an investigation that uncovered inadequate anti-money laundering (AML) and customer due diligence controls within Evolution’s UK operations, leading to a £4.75m settlement.

Investigation Uncovers Significant Weaknesses

The investigation, which commenced in December 2024, was initiated after the regulator identified Evolution’s live casino games being provided to unlicensed operators in the UK. Evolution subsequently reported that its titles were used across six unlicensed sites, operated by two third-party entities, between December 2023 and November 2024. The Commission first noted unauthorised Evolution games in August 2024 and formally informed the company in December 2024. Evolution acknowledged the legitimacy of the games and promptly blocked UK customer access on the affected sites.

However, the regulator’s inquiry revealed multiple breaches of licence conditions, specifically failures related to AML and compliance with the 2017 Money Laundering Regulations. Evolution was found to have shortcomings under Licence Conditions 12.1.1(1-3) and 12.1.2. The company’s risk assessments, conducted between April 2024 and January 2025, were deemed inappropriate, particularly concerning third-party risk evaluation. These deficiencies meant Evolution failed to identify that two operators were supplying games into the UK market without holding the necessary Gambling Commission licences. John Pierce, the Commission’s director of enforcement, stated: “This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain. Their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and their real-world effectiveness.”

Regulatory Response and Industry Impact

The Commission described Evolution as deficient in due diligence measures and ongoing monitoring. Pierce emphasised that “the commission’s investigation and testing uncovered failings that were serious enough for us to consider licence suspension.” However, due to Evolution’s ‘swift’ response, the suspension was not enforced. In response to the investigation, Evolution carried out extensive ring-fencing efforts across its European online gambling markets in 2025 to ensure its games could no longer be provided via unlicensed operators. This measure proved costly for the supplier and impacted its profitability throughout 2025.

Ultimately, Evolution agreed to a settlement with the Gambling Commission. This included the financial payment and a requirement for its UK licence to be independently audited within the next year. The company will also contribute towards the commission’s investigation costs. Evolution CEO Martin Carlesund stated in a Q2 earnings call that the settlement would not affect the company’s UK operations going forward, declaring: “I mean, we settled with them [UKGC]. There are no changes in our way of doing things in the UK for a while, and we have no changes coming up.”