Gambling Software Suppliers Under Regulatory Scrutiny

Increased Compliance Pressure on B2B Gambling Suppliers

Regulators worldwide are intensifying their oversight of B2B gambling software suppliers, scrutinising their revenue sources and partnerships with operators, aggregators, and resellers. This heightened enforcement stems from concerns over gambling software being accessible on unlicensed websites, raising significant risks around fraud, anti-money laundering (AML) compliance, and consumer protection.

Recent Regulatory Actions in Key Markets

United Kingdom: UK Gambling Commission (GC)

The UK Gambling Commission (GC) has intensified its efforts following reports that 1.5 million British consumers wager up to £4.3 million annually on unregulated gambling platforms.

A section 116 review of Evolution’s license was initiated after its games were discovered on unlicensed websites targeting UK players. Over 770 cease and desist notices have been issued. The GC referred 102,000 URLs to Google for removal, resulting in 64,000 takedowns. 264 illegal gambling websites have been shut down.

The GC has also issued a stern warning to software suppliers that allowing their games to appear on illegal platforms could put their own licenses at risk, particularly if third-party resellers or aggregators distribute games to black-market operators.

Sweden: Swedish Gambling Authority

The Swedish Gambling Authority has imposed financial penalties on multiple software suppliers after their games were found on unauthorised gambling sites.

United States: Michigan Gaming Control Board

The Michigan Gaming Control Board now requires internet gaming content providers to disclose any supply of their games to unlicensed operators as part of their licensing application process. This marks a significant step toward greater transparency and accountability for B2B providers operating in regulated U.S. markets.

Compliance Measures for Gambling Software Suppliers

Regulators are now demanding enhanced due diligence and risk management from licensed software suppliers. The UK Gambling Commission has introduced a 'Jurisdiction Explanation Document', requiring B2B applicants to disclose: Due diligence criteria for selecting third-party partners. Contractual constraints on resellers, including territorial restrictions. Technological safeguards to prevent unlicensed gambling. Revenue breakdowns from operator partners with unclear player locations.

Existing GC-licensed software suppliers should assess their risk controls and implement improvements where necessary.

Risk Mitigation Strategies for Suppliers

To avoid enforcement actions, software suppliers should: Strengthen Due Diligence – Conduct in-depth reviews of operators, aggregators, and resellers. Enhance Contractual Protections – Update agreements to explicitly restrict unauthorised game distribution. Monitor Third-Party Activity – Establish ongoing compliance reviews of where and how games are being used. Improve Technological Controls – Implement geolocation tracking and access restriction tools to prevent unauthorised use. Provide Staff Training – Ensure teams fully understand regulatory obligations and compliance protocols.

Final Thoughts

GC-licensed software suppliers are well-positioned to navigate these tightened regulatory controls, but now is the time to review and fortify compliance strategies. Failure to act could lead to license revocations, financial penalties, and reputational damage.

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