Gambling Commission issues stern warning over licenced software on illegal market
The British regulator says it will increase its monitoring after finding online casino games supplied by licensed operators on unlicensed websites.
UK.- The British Gambling Commission has warned that it may carry out test purchasing as it steps up monitoring after detecting online casino games supplied by licensed operators appearing on unlicensed websites available to British consumers illegally. CEO Andrew Rhodes touched on the issue in a speech at the IAGA Webinar last week, and the regulator has now issued an official warning notice.
The commission found that, in some instances, third-party resellers were distributing games supplied by operators to the illegal market, often in breach of contractual obligations. It warned that licensees may have been negligent in allowing them to do so and could place their own licence at risk. The regulator called on operators providing Business-to-Business (B2B) gaming solutions including live games, live casinos and slots to help tackle the illegal market by reviewing their own practices.
“These markets are unregulated, and do not provide the same safeguards that are required of operators,” the warning notice states. “They often target vulnerable customers, such as those who have self-excluded via the GAMSTOP scheme. 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 regulator added: “The Commission advises operators to actively monitor their business relationships to ensure any partners are not participating in offering illegal gambling facilities to the GB market, and where identified, terminating relationships where non-compliance has occurred. It is critical that licensees also actively engage with the Commission where such activity is identified, setting out the preventative measures adopted to ensure such activity ceases immediately. Actively notifying the Commission and setting out a clear plan to mitigate the issue at pace is a minimum requirement.”
The Gambling Commission warned that it may carry out test purchasing at any time. It also called on operators and suppliers to report any suspicious activity to its intelligence team at [email protected] or through its Confidential Portal.
