TGP Europe Exits UK Market After £3.3M Gambling Commission Fine

TGP Europe, which operated gambling websites, gave up its licence after being informed that it would have to pay a £3.3 million fine and make major changes if it were to stay in business in the UK. The penalty was primarily imposed for violating anti-money laundering regulations and not conducting adequate due diligence on business partners.

What’s more, failing to effectively implement the heightened due diligence procedures specified in its own AML policy by not thoroughly examining information obtained from a third party was one of the anti-money laundering (AML) violations.

An investigation by the Gambling Commission found shortcomings in the following areas:

• Failing to conduct thorough due diligence on the source of funding for business agreements and on each company engaged in the third party’s ownership.
• Inadequately accounting for the hazards of money laundering.
• Inadequately taking into account any unlawful third-party action, whether in Great Britain or the country in which it is carried out.

This is TGP Europe‘s second violation of the rules. In 2023, owing to insufficient adherence to the rules and procedures regarding due diligence conducted prior to white label agreements, as well as failing to sufficiently examine and mitigate the money laundering risks provided by business-to-business connections, the operator was fined £316,250.

As a result of TGP’s withdrawal from the UK market, a number of professional football teams currently have sponsorship deals with unlawful gambling establishments. As a result, the Gambling Commission has sent warnings about the dangers of endorsing unlicensed gambling websites to AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC, and Burnley FC.

Clubs will need to show that they are confident in the effectiveness of any geo-blocking measures their partners enforce, acknowledging that certain geo-blocking tools can be easily circumvented with the use of tools like a VPN.

Clubs will also be required to conduct enough due diligence to guarantee the Gambling Commission that customers from Great Britain are unable to transact with the associated gambling websites in any way. Additionally, the Gambling Commission will take action to independently confirm that appropriate safeguards are in place.

As a final note, the letter warns that club officers who support illicit gambling firms that deal with customers in Great Britain might be prosecuted and, if found guilty, face a fine, jail time, or both. This highlights just how seriously the UK Gambling Commission is taking these infractions and the ramifications they could have on those associated via legal and compliant business arrangements.