Evolution Gaming, a prominent live casino provider, is currently under investigation by the UK’s Gambling Commission for alleged black-market activity. This inquiry has led to a significant drop in the company’s share price. The investigation centers on the accessibility of Evolution’s gaming portfolio through unlicensed operators in the UK.
Gambling Commission Launches Investigation
The UK’s Gambling Commission has initiated a formal investigation into Evolution Gaming. The core of the inquiry revolves around suspicions of black-market activity, specifically the availability of Evolution’s games on platforms not licensed to operate in the UK. This could potentially jeopardize Evolution’s UK operating license.
Key Takeaways
- The UK Gambling Commission is investigating Evolution Gaming for suspected black-market activity.
- The investigation was prompted by the discovery of Evolution’s games on unlicensed UK platforms.
- Evolution has stated its full cooperation with the investigation and has already removed content from the identified unlicensed platforms.
- Potential outcomes range from no action to financial penalties, license conditions, or even suspension/revocation of the license.
- The UK market accounts for approximately 3% of Evolution’s total revenue.
Evolution’s Response and Actions Taken
Evolution Gaming has publicly stated its full cooperation with the Gambling Commission’s review. CEO Martin Carlesund emphasized the company’s commitment to supporting the licensed UK market and preventing unlicensed traffic. Evolution has taken “forceful action” by implementing technical tools, including IP-blocking, to ensure its games are only accessible through Commission-licensed operators in the UK. The company has also confirmed that all actions requested by the Commission have been implemented and are being actively monitored for effectiveness.
Potential Outcomes and Market Impact
The investigation carries several potential outcomes for Evolution Gaming, varying in severity. These include:
- No action taken by the Commission.
- Imposition of financial sanctions.
- Addition of conditions to Evolution’s UK license.
- Suspension or potential revocation of the license.
Following the announcement of the investigation, Evolution’s share price experienced a notable decline of 11.8%, reflecting investor concerns regarding the potential repercussions.