Following up from yesterday’s investigation into the closure of a sea of operators in the UK, the UK Gambling Commission has confirmed a myriad of failings and failure to pay a lucrative fine led to the surrendering of TGP Europe’s white label licenses.
The firm was ordered to pay a £3.3 million penalty and make significant improvements if it wanted to retain its status.
The downfall of the firm came after they were found to have failed to carry out sufficient checks on business partners and breached anti-money laundering rules.
A Commission investigation revealed failures to:
- carry out effective due diligence on each entity involved in the ownership of the third party
- carry out due diligence on the source of funds for business arrangements
- sufficiently consider money laundering risks
- sufficiently consider any activity by a third-party that is illegal, in either GB or the territory in which it is conducted.
John Pierce, Commission Head of Enforcement, stated on the investigation: “This case involves a gambling company that was unwilling or unable to meet the regulatory standards we expect from our licensees. It is right that they have now exited the British market.
“Following TGP’s exit, several online gambling operators can no longer lawfully offer gambling facilities to consumers located in Great Britain. These sites, previously operating under TGP’s licence, may not provide adequate protection against criminal activity or gambling-related harm and should not be available to GB consumers with immediate effect.”
He continued: “We have already been in contact with several football clubs today to highlight the impact of the withdrawal from the market by TGP and make clear that we will be carrying out checks-without further notice – to ensure these sites remain blocked. We will also conduct ongoing spot checks as necessary to ensure they are not accessible to consumers in Great Britain by any means. Should any of these sites be available to GB consumers, we will take appropriate action.
“It is essential that football clubs play their part in protecting fans and GB consumers who may be exposed to advertising of these sites through their sponsorship arrangements from harm or exploitation. All licensed operators with similar arrangements to TGP should take notice of the action taken in this case.
“We would like to warn consumers that sites operated by TGP are now unlicensed and may not provide protections against criminality or gambling related harm.”
The decision will also have an impact on the sponsorship of a myriad of Premier League clubs, which were sponsored by TGP Europe brands.
The UKGC revealed it has contacted AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC and Burnley FC, warning the clubs of the risks of promoting unlicensed gambling websites.
The Commission is seeking assurance from the clubs that they have carried out due diligence on their white label partners and that consumers in Great Britain cannot transact with the unlicensed sites.
