TGP Europe, an operator managing a network of gambling websites, has surrendered its operating licence following a directive from regulatory authorities requiring the payment of a £3.3 million penalty and the implementation of significant compliance improvements as conditions for remaining active in the Great Britain market. The penalty was imposed due to substantial lapses in the operator’s oversight of business partners and breaches of anti-money laundering (AML) regulations.
The reasons
The Gambling Commission’s investigation highlighted deficiencies in TGP Europe’s due diligence processes. The operator failed to conduct adequate checks on each entity involved in the ownership structures of third-party businesses, did not thoroughly investigate the sources of funds underpinning business arrangements, and neglected to sufficiently assess the risks associated with money laundering. Furthermore, TGP Europe was found not to have given proper consideration to illegal activities conducted by third parties, whether such activities took place within Great Britain or in other jurisdictions.
TGP Europe’s business model was based on a white label arrangement, whereby it operated gambling services using the branding and identity of other organisations. The Commission found that TGP Europe did not effectively implement the enhanced due diligence measures described in its own AML policies, particularly about the scrutiny of information provided by third parties. These findings constitute a repeat offence, as TGP Europe had previously been fined £316,250 in 2023 for similar regulatory breaches, including inadequate assessment and mitigation of money laundering risks in business-to-business relationships and the establishment of ineffective due diligence protocols prior to entering white label agreements.
Football connection
The company’s departure from the British market has broader implications, notably for several football clubs that maintain sponsorship relationships with gambling businesses previously operated by TGP Europe. The Gambling Commission has issued warnings to AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC, and Burnley FC concerning the risks associated with promoting gambling platforms that are now unlicensed.
The regulator has sought assurances from these clubs that due diligence has been conducted on their white label partners and that consumers in Great Britain are unable to access or transact with the unlicensed gambling sites. The Commission has further stipulated that football clubs must demonstrate the effectiveness of any geo-blocking measures employed, acknowledging that such technological barriers can be circumvented by users employing tools such as Virtual Private Networks (VPNs).
Football clubs are thus required to undertake comprehensive due diligence to provide the Commission with confidence that consumers in Great Britain are fully restricted from engaging with these gambling platforms, regardless of the method of access. The Commission has also indicated it will independently verify the effectiveness of these measures.
John Pierce, Commission Head of Enforcement, said:
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.”
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.”
