UKGC Details AML, Third-Party Failures Behind Evolution Settlement
The regulator stated that the settlement resulted from inadequate AML risk assessments, weak third-party oversight, and ineffective controls.
The UK Gambling Commission (UKGC) has published the findings of its license review into Evolution’s £4.75 million regulatory settlement. The regulator concluded that failures in the supplier’s anti-money laundering (AML) controls and third-party oversight allowed its games to appear on six unlicensed gambling websites accessible to consumers in the U.K.
The Commission launched an investigation into the company after identifying five Evolution games across six websites operated by two unlicensed companies.
The UKGC said it had information suggesting there were “large volumes of visits” by U.K. consumers to the websites between December 2023 and November 2024. The Commission identified the Evolution games and notified the supplier in December 2024. The company confirmed the games were genuine and immediately geo-blocked them.
The UKGC’s review concluded that Evolution breached License Conditions 12.1.1. and 12.1.2. The regulator said these shortcomings resulted in Evolution failing to identify that two customers offering its games in the U.K. didn’t have the appropriate licenses.
Ultimately, Evolution agreed to a £4.75 million settlement, announced last week.
AML Policies and Controls Found Inadequate
The Commission found that Evolution breached Licence Condition 12.1.1. after concluding its AML risk assessment, policies and controls were inadequate between April 2024 and January 2025.
According to the findings, Evolution’s 2024 risk assessment failed to meet the Commission’s minimum requirements, particularly for assessing third-party risk. The UKGC also found that Evolution failed to apply appropriate policies, procedures and controls to prevent AML and terrorist financing.
As a result, the company lacked adequate controls to monitor and identify when its games were supplied to unlicensed websites accessible to British consumers and to ensure it supplied only licensed operators.
The Commission further concluded that the company breached Licence Condition 12.1.2. That’s because its policies and processes did not fully comply with the U.K.’s Money Laundering Regulations. UKGC cited failures to adequately assess money laundering and terrorist financing risks, maintain effective policies and controls, and meet customer due diligence requirements.
Settlement Requires Independent Audit
In addition to the financial payment, the settlement also requires the company to accept a new license condition mandating an independent audit of its relevant policies, procedures and controls within 12 months of the conclusion of the license review.
Evolution also agreed to publish the regulator’s statement of facts and to pay the Commission’s investigation costs.
In explaining the settlement, the UKGC identified several aggravating factors. Those include the fact that the license breaches resulted in financial gain for Evolution, the seriousness of the failings, the regulator’s prior warnings to the industry about illegal gambling, and the potential impact on the licensing objective of protecting vulnerable people.
The UKGC also listed mitigating factors. Those include Evolution’s prompt implementation of an action plan after being notified by the Commission, its full cooperation during the investigation and its early acceptance of the failings.
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