GC issues white label warning after enforcement actions

9 September 2019

The GB Gambling Commission has warned white label solutions providers that they will ultimately be held responsible for any wrongdoing by clients, in the wake of enforcement action against two high-profile suppliers.

The regulator highlighted Provision 1.1.2 of the Social Responsibility Code, part of its Licence Conditions and Codes of Practice, which states that the licence holder is responsible for the third parties with whom they contract.

Provision 1.1.2 also makes clear that it is up to the licensee to ensure that these clients conduct themselves as if they were bound by the same conditions and codes of practice.

“Licensees must know their customers and be able to demonstrate knowledge, oversight and proactive interactions where appropriate,” the Commission said. “Any interventions must be completed in a timely manner.”

Failure to comply with these conditions could bring into question the licence holder’s suitability, ultimately leading to the loss or suspension of its certification, the regulator added.

The Commission also warned that all third parties with which operators and white label providers work must hold relevant licences. It will publish further guidance in due course, in order to help licensees ensure they are operating within its rules and regulations.

The warning comes after the Commission last week suspended EveryMatrix’s operating licence and instigated a review into the online gaming software supplier. The regulator said the decision was based on compliance activity at EveryMatrix, including an examination of its customer interaction framework. This appears to relate to the activities of its white label sites.

EveryMatrix, whose B2B UK licence has not been affected by the suspension and remains active, has since outlined its plans to address the concerns raised by the Commission as to how it manages customer interactions.

The supplier said its licence will remain suspended until it can demonstrate to the regulator that it has taken steps to become fully compliant with its social responsibility obligations.

A review into another white label solutions provider, FSB Technology, was announced in August. The regulator launched a review of its licence amid questions over the conduct of two of its clients, BlackBet and 1xBet.