TGP Europe Exits UK Market Following Regulatory Action

_{Regulatory action leads to TGP Europe’s exit from the UK gambling market. (Image: TGP Europe)}

The UK Competition and Markets Authority (CMA) has taken regulatory action against TGP Europe leading to the company’s withdrawal from the British market. 

TGP Europe is a white-label gambling operator that provided licensing and backend services for multiple third-party online casinos and sportsbooks, many of which targeted UK consumers under its regulatory umbrella.

The decision follows a detailed investigation by the UK Gambling Commission into the operator’s compliance with licensing and anti-money laundering regulations.

License Surrender and Penalties

TGP Europe surrendered its gambling license after being instructed to pay a £3.3 million fine and implement significant improvements to continue operating legally in Great Britain. The fine was imposed due to failures in conducting adequate checks on business partners and violations of anti-money laundering (AML) rules.

The commission’s investigation uncovered multiple compliance failures, including:

• Inadequate due diligence on entities involved in third-party ownership, with insufficient checks on the source of funds for business arrangements.
• Failure to properly assess money laundering risks.
• Neglect in identifying illegal activities by third parties within Great Britain or other territories.

Specific AML breaches included not effectively applying enhanced due diligence measures as outlined in TGP’s own AML policies. This involved inadequate scrutiny of information received from third parties involved in the business.

This marks the second violation by TGP Europe within a short period. Earlier in 2023, the operator was fined £316,250 for failing to adequately consider and mitigate money laundering risks, especially in B2B relationships. It was found that there were ineffective policies and procedures related to due diligence before establishing white-label agreements.

Impact on Sponsorship and Football Clubs

TGP Europe’s withdrawal from the GB market affects several football clubs with sponsorship arrangements linked to unlicensed gambling businesses. 

The UK commission has contacted clubs such as AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC and Burnley FC to warn about the risks associated with promoting unlicensed gambling sites. 

The commission also seeks assurances that due diligence has been carried out on white-label partners and confirmation that consumers cannot transact with unlicensed sites in Great Britain.

Measures for Ensuring Consumer Protection

Clubs are expected to demonstrate thorough due diligence on their partners and ensure geo-blocking measures are effective and cannot be bypassed using tools such as VPNs. Clubs must also conduct independent checks to verify compliance.

Club officers promoting unlicensed gambling sites that reach consumers in Great Britain could face prosecution, fines, imprisonment or both. 

The commission’s head of enforcement, John Pierce, stated that the withdrawal of TGP from the market is justified due to its failure to meet regulatory standards. He stressed the role of football clubs in protecting fans and consumers from gambling-related harm and criminal activity.

Guidance for Consumers and Operators

Consumers are advised to verify whether gambling sites are licensed by searching the UK Gambling Commission’s business register. When operators exit the market, they are expected to close their websites responsibly, provide clear instructions for consumers to access their funds and offer support for account-related inquiries.

The UK Gambling Commission remains committed to safeguarding consumers and maintaining a fair and safe gambling environment. Operators are urged to adhere to licensing and AML regulations to avoid enforcement actions and ensure responsible business practices.