TGP Europe Steps Away from UK Market After Regulatory Breach Impacting Football Club Sponsorships

Key Takeaways

• TGP Europe Exits UK Market: The company surrendered its license after failing to meet regulatory standards, including insufficient due diligence and breaches of anti-money laundering regulations.
• £3.3 Million Fine: TGP was required to pay a significant penalty and implement operational changes to continue trading in the UK, but ultimately chose to exit the market instead.
• Failure to Meet Compliance Standards: The investigation revealed lapses in due diligence on business partners, inadequate checks on the source of funds, and insufficient risk management regarding money laundering and criminal activity.
• Football Clubs Impacted: Several Premier League clubs with sponsorship deals with TGP are now under scrutiny by the Gambling Commission to ensure they do not promote unlicensed gambling sites.
• Ongoing Checks and Enforcement: The Gambling Commission will carry out ongoing checks to ensure that TGP’s former sites remain blocked in the UK, with potential legal action for non-compliance.

Deep Dive

TGP Europe, a prominent white-label gambling operator, has exited the UK market following a series of regulatory breaches uncovered by the UK Gambling Commission. The company, which ran several gambling websites under the branding of other businesses, voluntarily surrendered its UK operating liscence after being informed it would face a £3.3 million penalty unless it made significant improvements to its operations.

The penalty was imposed for failing to conduct proper due diligence on its business partners and for breaching anti-money laundering (AML) regulations. According to the Commission, TGP's failure to ensure that third-party partners met the necessary standards for money laundering prevention and financial transparency led to significant compliance issues.

The Commission's investigation revealed multiple deficiencies in TGP's operations:

• Inadequate due diligence on entities involved in the ownership of third-party partners.
• A lack of scrutiny regarding the source of funds for business arrangements.
• Failure to properly assess money laundering risks, as well as illegal activities linked to third-party businesses in both the UK and the countries in which they operated.
• Failure to implement enhanced due diligence measures, as required by TGP’s own AML policy.

This marks the second time TGP Europe has fallen short of regulatory expectations. In 2023, the company was fined £316,250 for similar violations, including failures to consider and mitigate money laundering risks associated with business-to-business relationships. The company’s inability to effectively manage its white-label agreements was also cited as a key factor in its earlier fine.

As a result of the regulatory action, TGP Europe has ceased its operations in the UK market, impacting multiple football clubs that had sponsorship arrangements with the company. These clubs, including AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC, and Burnley FC, have now been warned by the Gambling Commission about the risks of promoting unlicensed gambling websites. The Commission has requested that these clubs provide assurance that they have carried out proper due diligence on their white-label partners, ensuring that consumers in the UK cannot engage with any unlicensed sites.

Clubs will also be asked to prove that they have taken adequate measures, such as geo-blocking, to prevent UK consumers from accessing these now-unlicensed websites. The Commission has warned that these geo-blocking efforts must be effective, as tools like Virtual Private Networks (VPNs) can bypass such restrictions.

John Pierce, Head of Enforcement at the Gambling Commission, emphasized the seriousness of the situation, "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."

He added, "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 liscence, may not provide adequate protection against criminal activity or gambling-related harm and should not be available to GB consumers with immediate effect."

The Commission also underscored that the responsibility for protecting consumers lies not only with operators but also with the clubs that promote them. The clubs have been advised that failure to act could result in legal action, including fines or imprisonment for promoting unlicensed gambling activities.

In light of TGP’s withdrawal, the Gambling Commission is actively working to ensure these sites remain inaccessible to UK consumers, with ongoing checks and enforcement action planned. The Commission further reassured the public that any consumer with questions about their accounts with TGP-related websites should reach out to the company directly via their website for further information.

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