Jul 22, 2026 | 4:44 am
The UK Gambling Commission (UKGC) considered suspending Evolution’s operating licence after an investigation uncovered anti-money laundering (AML) weaknesses and failures linked to the distribution of the company’s games through unlicensed operators serving British customers.
The regulator disclosed the details as part of an update following Evolution’s recent £4.75 million regulatory settlement. According to the commission, the case centered on deficiencies in AML controls, customer due diligence procedures, and oversight of risks connected to third-party partners within the supplier’s distribution network.
The investigation ultimately resulted in a financial settlement and additional compliance obligations for Evolution. However, the regulator indicated that the issues identified were severe enough to prompt consideration of more serious enforcement action.
“This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain,” said John Pierce, the Gambling Commission’s director of enforcement.
“Their AML assessment was outdated and failed to adequately consider the risk posed by unlicensed operators distributing their games, creating a significant gap between documented controls and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.”
Investigation Traced Games on Unlicensed UK-Facing Sites
The regulator launched its formal investigation in December 2024 after discovering that Evolution’s live casino content was available through operators that lacked the required authorization to offer gambling services in the UK.
According to information released by Evolution the previous week, the commission identified the supplier’s games on six unlicensed websites connected to two third-party operators. The activity occurred between December 2023 and November 2024.
The UKGC stated that it first became aware of Evolution titles appearing on unauthorized platforms in August 2024. Several months later, in December 2024, the regulator formally notified the company of its concerns.
After being informed, Evolution confirmed that the games appearing on the affected sites were legitimate products and moved to block access for users located in the UK.
While the company took action to prevent further access, the regulator’s review expanded beyond the distribution issue and examined Evolution’s broader compliance framework. During that process, investigators identified a range of shortcomings involving AML controls and obligations under the Money Laundering Regulations 2017.
The commission found that Evolution had failed to meet requirements under Licence Conditions 12.1.1(1-3) and 12.1.2. Particular attention was given to the company’s risk assessments conducted between April 2024 and January 2025, which regulators determined were inadequate when evaluating risks associated with third parties.
According to the commission, those weaknesses contributed to Evolution’s inability to identify that two operators were supplying its products to UK customers without holding Gambling Commission licences.
AML and Due Diligence Processes Came Under Scrutiny
A key aspect of the investigation focused on the company’s approach to due diligence and ongoing monitoring of business partners.
The commission concluded that Evolution’s controls did not provide sufficient oversight of its supply chain and that existing processes failed to identify risks connected to unlicensed operators. Regulators also highlighted deficiencies in customer due diligence procedures and AML monitoring measures.
As a result, the UKGC assessed whether the identified failings warranted suspension of the supplier’s licence.
Pierce emphasized the seriousness of the findings, stating that “the commission’s investigation and testing uncovered failings that were serious enough for us to consider licence suspension”.
Despite reaching that stage in its assessment, the regulator ultimately chose not to suspend the licence. The decision reflected Evolution’s response once the issues were brought to its attention.
The commission pointed to the company’s prompt actions to address the concerns as a factor in avoiding more severe sanctions.
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Settlement Includes Audit and Compliance Commitments
The case concluded with Evolution agreeing to a settlement package that included a £4.75 million payment and further regulatory obligations.
As part of the agreement, the supplier must undergo an independent audit of its UK licence operations within the next 12 months. Evolution will also cover costs associated with the commission’s investigation.
The supplier had already begun implementing measures aimed at preventing similar issues from occurring again. During 2025, Evolution introduced extensive ring-fencing measures across its European operations to stop its games from being distributed through unlicensed operators.
Those actions carried a financial cost and affected the company’s profitability during the year, according to information released alongside the regulatory proceedings.
The settlement does not appear likely to alter Evolution’s current operations in the UK market. Speaking during the company’s second-quarter earnings call, chief executive Martin Carlesund said the agreement would not require changes to its business activities in the jurisdiction.
“I mean, we settled with them [UKGC],” Carlesund declared. “There are no changes in our way of doing things in the UK for a while, and we have no changes coming up.”
Source:
“Gambling Commission considered suspending Evolution licence following AML failings“, igamingbusiness.com, July 23, 2026.