UKGC Raises Gambling Software Sector To Medium Money Laundering Risk

The Gambling Commission has raised the UK gambling software sector’s money laundering and terrorist financing risk rating to medium as black-market concerns increase significantly.

This change follows increased focus on the black market, which the government’s 2025 National Risk Assessment identified as a threat to UK consumers. The assessment also raised the casino sector’s money laundering risk from low to medium.

The Commission has warned business-to-business suppliers about their games appearing on unlicensed websites. Last year, it addressed reports involving licensed suppliers whose content had been found on illegal gambling platforms.

Evolution case highlights weaknesses in supplier due diligence

Scrutiny intensified after the Commission completed its investigation into Evolution over games appearing on UK-facing illegal websites.

“We do not control which markets our operator customers operate in. The decision about which markets to target with their services lies with the operators,” Evolution said, defending its position.

However, the Commission found “serious” anti-money laundering deficiencies in how the supplier managed relationships with third parties. This case resulted in a £4.75m settlement.

The regulator acknowledges that suppliers may not always know when their games are offered by illegal operators. Previous cases exposed weaknesses in due diligence and record keeping.

Suppliers are expected to review internal controls and ensure compliance systems meet Commission standards.

Commission expands resources to target illegal gambling networks

This assessment forms part of efforts to strengthen supplier oversight and reduce access to illegal gambling products in Britain. The Commission has created a Head of Illegal Markets role and received an additional £26m in government funding to support disruption activity.

The higher risk rating places greater responsibility on software businesses to understand where products are distributed, assess third-party relationships and identify weaknesses before they create regulatory exposure.

UKGC has boosted the country’s money laundering and terrorist financing rank to medium from low. This finding has resulted in drastic measures such as improvements in supplier regulation and limited access to illegal products.