TGP Europe Opts to Exit the UK Instead of Paying $4.4M Fine

TGP Europe, the name behind several English Premier League (EPL) sponsorships, has opted to forfeit its UK license instead of paying a huge AML-related fine. This decision could put its many contracted teams in trouble.

TGP Europe Has Deals with Several Soccer Clubs

TGP Europe is the company behind several betting brands that struck major EPL sponsorships. These included arrangements with AFC Bournemouth (sponsored by BJ88), Fulham FC (sponsored by SBOTOP), Newcastle United FC (sponsored by Sportsbet.io and FUN88), Wolverhampton Wanderers FC (sponsored by DEBET) and Burnley FC (sponsored by 96.com).

The brands associated with the aforementioned teams are only a few of the brands operated by TGP Europe. According to the United Kingdom’s Gambling Commission (UKGC), the company operated 31 gambling domains in the UK alone. The full list of brands is available on the commission’s official website.

TGP Europe Exits the UK

On May 16, the UKGC confirmed that TGP Europe has decided to exit the British market as a result of a regulatory action. For context, the commission had previously levied a £3.3 million (approximately $4.4 million) penalty against the company due to a variety of AML-related failings.

According to the UKGC, TGP Europe failed to carry out sufficient checks on its business partners and violated anti-money laundering rules. The AML breaches included failing to implement enhanced due diligence measures outlined in the operator’s own AML policy by not effectively scrutinizing third-party information.

The operator was therefore told that it needed to “make significant improvements” if wanted to continue trading in the UK.

This was not the first time TGP Europe had been fined either as it previously had to pay £316,250 for not adequately addressing money-laundering risks caused by B2B partnerships. The operator was also accused of poor due diligence procedures in relation to earlier white-label agreements.

TGP’s Partnering Clubs Are in an Awkward Position

The UKGC pointed out TGP’s exit from the UK means that the operator’s contracted teams now effectively have sponsorship arrangements with unlicensed gambling brands. This puts them in an awkward position considering the UK’s rules on such deals.

As a result, the regulator contacted the soccer teams to confirm that they had carried out due diligence on their white-label partners and that consumers in Great Britain cannot transact with the unlicensed sites they promote. The clubs will be required to show that their betting sponsors have taken sufficient steps to prevent British customers from accessing the unlicensed offering.

If the commission finds that the unlicensed gambling businesses in question are available to British players, the clubs could potentially face fines.

The Operator Was “Unwilling or Unable” to Meet the UK’s Standards

John Pierce, the commission’s head of enforcement, commented on the matter, saying that it is “right” that TGP Europe has left the British market, considering that it was unwilling or unable to meet the regulatory standards.

Pierce also commented on the clubs’ sponsorship deals, emphasizing that they must make sure that their unlicensed partners are not available to local players.

It is essential that football clubs play their part in protecting fans and GB consumers who may be exposed to advertising of these sites through their sponsorship arrangements from harm or exploitation. All licensed operators with similar arrangements to TGP should take notice of the action taken in this case.

John Pierce, head of enforcement, UKGC

In the meantime, Pierce warned consumers that TGP’s sites are now unlicensed and, as a result, may not provide sufficient protections against crime or gambling harm.

The commission concluded that it expects an orderly closure to TGP’s business in the UK and opportunities for local players to withdraw their funds.