Following a rise of online casino titles from UK-licensed suppliers on black market casinos, the UK Gambling Commission has issued a statement urging operators to monitor if their partners are partaking in illegal activity.
These markets are unregulated, and do not provide the same safeguards that are required of operators.
The UKGC has explained that these illegal websites offering online casino games are unregulated and cannot provide the same safeguards that are required from licensed operators, including abiding by self-exclusion schemes such as GAMSTOP, placing vulnerable gamblers at-risk.
The Commission stated: “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.”
However, operators providing online casino platforms in the UK can help the regulator to tackle these illegal websites by reviewing their own operations.
The Commission has found that, in some instances, third party resellers are distributing games supplied by operators to the illegal market, often in breach of their contractual obligations.
The UGKC suggested that Commission licensees may have been negligent in allowing them to do so and in the process, place their own licence at risk.
The regulator has advised operators to ‘actively monitor’ their business relationships to ensure any partners are not participating in offering illegal gambling facilities to the UK 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,” the group continued.
“Actively notifying the Commission and setting out a clear plan to mitigate the issue at pace is a minimum requirement.”
Lastly, the Commission emphasised that it is adopting a proactive approach to this matter and may decide at any point to conduct test purchasing activity to evidence potential breaches.
