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Evolution Malta Holding Limited will pay £4.75 million following a UK Gambling Commission (UKGC) investigation that found weaknesses in the supplier’s anti-money laundering controls and oversight of business relationships that resulted in its games appearing on unlicensed gambling websites accessible from Great Britain.
The investigation identified Evolution content on six unlicensed websites operated by two companies. Between December 2023 and November 2024, consumers in the UK made large volumes of visits to those sites.
The regulator first identified Evolution games operating without the required authorisation in August 2024 and formally informed the company in December. Evolution acknowledged that the games were legitimate titles from its portfolio and moved to block UK access through the affected websites.
Investigators subsequently examined the controls that Evolution used to assess its customers and manage the risk of its games reaching unlicensed operators. The review found that the company’s systems had failed to identify that two businesses with which it had commercial relationships were supplying its games to consumers in Great Britain without holding the necessary licence.
Investigation Identifies AML and Due Diligence Failures
The regulatory findings covered several licence obligations relating to anti-money laundering procedures and the 2017 Money Laundering Regulations.
Evolution breached Licence Conditions 12.1.1(1-3), which concern risk assessment and the operation of controls intended to manage identified risks. The regulator also found a breach of Licence Condition 12.1.2 covering customer due diligence requirements.
Evolution’s risk assessments between April 2024 and January 2025 did not adequately address third-party exposure, according to the findings. The company also failed to take “appropriate steps” to identify and assess the possibility that its business relationships could expose it to money laundering or terrorist financing risks.
John Pierce, Director of Enforcement at the Gambling Commission, said in a press release: “This case exposed serious weaknesses in Evolution’s anti-money laundering risk assessment and its oversight of risks within its supply chain.
“The company’s AML risk assessment was outdated and failed to adequately consider the risk of its games being made available through unlicensed operators. As a result, there was a significant gap between the controls on paper and their effectiveness in practice.
The findings showed that Evolution’s documented compliance framework did not operate effectively enough to prevent its content from reaching unlicensed websites targeting the British market.
Pierce also described the findings as follows: “This investigation exposed serious weaknesses in Evolution’s AML risk assessment and its oversight of risks within its supply chain,”
“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.”
Another statement from Pierce addressed the same weaknesses in the company’s compliance arrangements:
“This case exposed serious weaknesses in Evolution’s anti-money laundering risk assessment and its oversight of risks within its supply chain,”
“The company’s AML risk assessment was outdated and failed to adequately consider the risk of its games being made available through unlicensed operators. As a result, there was a significant gap between the controls on paper and their effectiveness in practice.”
The regulator concluded that Evolution lacked adequate ongoing monitoring and customer due diligence measures for the risks associated with the relevant business relationships.
Licence Suspension Considered Before £4.75M Settlement
The seriousness of the breaches led the Gambling Commission to consider suspending Evolution’s UK licence.
“The Commission’s investigation and testing uncovered failings that were serious enough for us to consider licence suspension.
Pierce also emphasised that “the commission’s investigation and testing uncovered failings that were serious enough for us to consider licence suspension”.
The regulator ultimately agreed to a £4.75 million settlement after considering Evolution’s cooperation and the remedial measures implemented after the problems came to light.
The settlement money will go toward socially responsible causes. Evolution also agreed to commission an independent third-party audit covering its anti-money laundering controls and safer gambling arrangements, with the review to take place within the next year. The company must implement recommendations arising from that audit and contribute toward the regulator’s investigation costs.
“Evolution responded swiftly and comprehensively once these issues were identified, taking immediate action to strengthen its controls and address our concerns. Our subsequent testing has not identified any further instances of concern.
The regulator also referred to Evolution’s response as “swift and comprehensive” when explaining why suspension was not imposed.
During 2025, Evolution carried out extensive ring-fencing work across its European operations to prevent its games from reaching customers through unlicensed operators. Those measures carried significant costs and affected the supplier’s profitability during the year.
Evolution CEO Martin Carlesund addressed the settlement during the company’s second-quarter earnings call.
“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.”
Regulatory Action Comes During Wider Changes at Evolution
The settlement follows another significant development for Evolution, which recently ended its proposed acquisition of Galaxy Gaming.
Evolution had pursued the casino games supplier for approximately two years in a transaction valued at around $85 million. The agreed closing period expired on July 17, allowing either party to terminate the proposed deal.
Evolution subsequently ended the transaction and agreed to pay Galaxy Gaming a $5.2 million termination fee. The company said it expected the two businesses to continue working together through their existing “strong commercial relationship”.
Analysts at Rothschild & Co Redburn had suggested that Nevada regulators may have been waiting for the outcome of Evolution’s UK licence review before approving the acquisition. Neither regulator publicly confirmed a connection between the two matters.
The Gambling Commission used the Evolution case to remind licensed businesses that written compliance procedures must reflect how their products and commercial relationships operate in practice.
“However, this case provides an important lesson for the industry. Operators must ensure their risk assessments are current, regularly tested and reflective of real-world risks. They need to understand who they are supplying their games to, how and where those games are being accessed in practice, and maintain effective ongoing controls that give them confidence their products are not supporting illegal gambling.
Pierce also stated: “Operators must ensure their risk assessments are current, regularly tested and reflective of real-world risks,” he said. “They need to understand who they are supplying their games to, how and where those games are being accessed in practice, and maintain effective ongoing controls that give them confidence their products are not supporting illegal gambling.
The regulator said it would continue testing the market for licensed gaming content that appears through illegal operators targeting consumers in Great Britain.
“Operators should be under no illusion. We will continue to proactively monitor and test the market to identify licensed products being made available through illegal operators targeting consumers in Great Britain. Where we find failings, we will take decisive regulatory action.”
The settlement leaves Evolution’s UK operations continuing under its existing licence arrangements while requiring further independent scrutiny of its compliance controls. The regulator said subsequent testing following the company’s remedial action had not uncovered any additional instances of concern.