Gambling Commission warns operators to end supplier deals with black market links
Regulator says "test purchasing activity" could be used, while operators asked to review in-house practices when it comes to third-party partnerships
The Gambling Commission has advised licensed operators to terminate supplier relationships where non-compliance has occurred, on the grounds some licensees may have been “negligent” thus far.
In an update on the regulator’s site, a blog post has provided further clarification on operator relationships with suppliers that have had content appear on unlicensed UK sites.
In recent months, Gambling Commission CEO Andrew Rhodes has warned suppliers they may have licences revoked for providing content to illegal firms, and that warning has now extended to operators to ensure due diligence is taking place.
The regulator said the lack of customer care, black market firms actively targeting vulnerable customers and AML and data risks meant it was “imperative” to reduce the threat of the illegal sector.
The Gambling Commission confirmed it has found instances where third-party resellers are distributing suppliers’ games to the black market, “often in breach of their contractual obligations”.
“Commission licensees may have been negligent in allowing them to do so and in the process, place their own licence at risk,” the regulator said.
The Gambling Commission added that operators should “actively monitor their business relationships” to ensure supplier partners are not supporting black market firms.
Should operators identify such cases, the regulator said those business relationship should be terminated where non-compliance has occurred.
The regulator also asked operators to “actively engage” with it to ensure such failings are ceased immediately.
The Gambling Commission said: “Actively notifying the Commission and setting out a clear plan to mitigate the issue at pace is a minimum requirement.
“The Commission is adopting a proactive approach to this matter and may decide at any point to conduct test purchasing activity to evidence potential breaches.”
Additionally, firms were told to review their own internal practices to help tackle the illegal market.
The Gambling Commission said any suspicious activity could be reported to its intelligence team via email or via a confidential portal.
The body added: “We encourage all of the gambling industry to remain engaged in supporting our efforts by actively monitoring the marketplace and reporting any illegal market activity that may impact Great British consumers to the Commission.”
The industry warning notice comes after the Gambling Commission launched an investigation into Evolution before Christmas after the Swedish firm’s games appeared on black market sites.
Betting and Gaming Council CEO Grainne Hurst said affiliated suppliers have agreed not to supply the black market and that a preventative framework is in the process of being drawn up.