Gambling Commission suspends Nektan operating licence
UK regulator initiates section 116 review into beleaguered Gibraltar-based supplier
The UK Gambling Commission (UKGC) has suspended Nektan’s UK bingo and online casino licences pending a formal investigation into the Gibraltar-based business.
Confirming the start of a section 116 review into Nektan (Gibraltar) Limited, the UKGC said it suspected the company had breached the conditions of its UK licence.
“We therefore consider it appropriate to suspend the licence with immediate effect pending the conclusion of the review or until such time as the operator can satisfy the commission it is operating compliantly,” the UKGC stated.
“We have made it clear to the operator that it must communicate effectively with its customers and that the suspension does not prevent it paying out winnings.
“The Gambling Commission will not comment any further whilst this investigation is ongoing,” the regulator added.
Nektan is a gaming technology and service provider specialising in mobile casino.
According to the UKGC website, Nektan powered 238 UK-facing igaming domains, all of which are inactive at present.
In recent years, the firm experienced a dramatic downturn in fortunes and finances.
Nektan first experienced financial difficulties towards the end of 2019 and later offloaded its loss-making B2C business to Grace Media, part of Active Win Group, in a £200,000 all-cash deal.
The UKGC did not reveal whether the events that led to the current licence suspension occurred under old or new ownership.
In April 2020, the Supreme Court of Gibraltar appointed Steven de Lara of Signature Litigation (Gibraltar) Limited and Ian Defty of CVR Global LLP as administrators at the firm.
At the time, Nektan cited a “time of material uncertainty” for the sector and the impact of the Covid-19 pandemic on its supplier and operator partners as reason for the decline into administration.
The appointment came after Nektan admitted it had failed to obtain the “working capital necessary to secure the future of the company”, a decision which led to the suspension of the firm from the AIM index for a second time that year.
Nektan was initially suspended from the AIM in January 2020 for failing to publish annual accounts as required under trading regulations.