TGP Europe Leaves GB Market Following UKGC Investigation – iGaming Post
The UK Gambling Commission has made a significant announcement regarding TGP Europe, a white label gambling operator that has officially exited the British market. This decision follows a regulatory investigation that revealed serious compliance failures, resulting in TGP surrendering its license.
Regulatory Findings and Consequences
TGP Europe, which managed various gambling websites, faced a £3.3 million penalty for deficiencies in its operational practices. The Commission identified multiple breaches, particularly concerning:
- Insufficient Due Diligence: TGP failed to perform thorough checks on its business partners and the ownership structures of third-party entities.
- Anti-Money Laundering (AML) Violations: The operator did not adequately address money laundering risks, ignoring necessary enhancements in their AML policies.
- Compliance Failures: The company neglected to scrutinize the legality of activities conducted by its third-party partners in both Great Britain and other territories.
This marks the second instance of regulatory breaches for TGP Europe. Earlier in 2023, the operator was fined £316,250 for inadequately managing money laundering risks associated with business relationships and lacking effective policies concerning due diligence in white label agreements.
Impact on Sponsorships in Football
TGP’s exit has left several football clubs in a precarious situation regarding their sponsorship deals with unlicensed gambling businesses. The UK Gambling Commission has proactively reached out to clubs such as AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC, and Burnley FC. The purpose of this communication is to ensure that these clubs have conducted adequate due diligence on their white label partners.
The Commission is emphasizing the need for clubs to demonstrate effective measures to prevent consumers in Great Britain from transacting with unlicensed sites. This includes verifying that geo-blocking measures are in place, recognizing that some can be bypassed using Virtual Private Networks (VPNs).
Legal Implications for Club Officials
Club officials are reminded of their potential legal liabilities in this situation. Promoting unlicensed gambling businesses could lead to prosecution, fines, or imprisonment. John Pierce, the Commission’s Head of Enforcement, underscored the importance of adherence to regulatory standards:
"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."
Pierce emphasized that since TGP’s exit, online gambling operators that previously functioned under TGP’s license can no longer legally offer services to consumers in Great Britain. He reassured the public that the Commission will conduct ongoing checks to ensure compliance and that any accessible sites will face immediate action.
Consumer Awareness and Safety
The Commission is urging consumers to be vigilant. With TGP now unlicensed, sites linked to the operator may not offer adequate protections against criminal activity or gambling-related harm. Consumers can verify a site’s licensing status by consulting the business register available on the Commission’s website.
Conclusion
The UK Gambling Commission’s stringent actions reflect its commitment to maintaining a safe and regulated gambling environment. As the industry evolves, operators and associated businesses must align with regulatory standards to ensure consumer protection and sustain trust within the community. Players are encouraged to remain aware of their rights and the importance of engaging only with licensed operators.
