Think of a white label product as one manufactured by Company A but bearing the label of Company B, which markets the product. For example, XYZ Clothiers manufactures a suit, which is sold at Burlington Coat Factory under that label. Or ABC Beer brews a line of lagers that Cheap Brews slaps its label on.
EveryMatrix has done a nice business with white labeling. While the company manufacturers gaming software and supplies as its core business, in 2014, the firm applied the white label concept to gambling in the UK. In British parlance, B2B operators like EveryMatrix provide gambling software to one or more B2C businesses. B2B operators may also provide facilities for gambling to one or more B2C licensees, as in the case of platform or network providers for online casinos.
Any British-based player accessing the network/platform does so via a UK Gambling Commission licensed B2C operator.
It’s here that EveryMatrix ran afoul of the commission. On September 5, the regulatory body suspended the company’s B2C licenses. The commission said the decision was based on compliance activity at EveryMatrix, including an examination of its customer interaction framework.
The suspension has no impact on the B2B license held by EveryMatrix. “We have not suspended the licensee’s activities of manufacturing, supplying, installing or adapting gambling software,” the commission wrote in its decision.
Under the terms of the suspension, EveryMatrix cannot provide B2C services, which include betting on either real or virtual events, or operate an online casino anywhere in the UK. The prohibition covers gamblers who use the following sites: bookee.co.uk, pwrbet.com, fantasino.com, playfrank.com, sportingindex.com, westcasino.com, dragonaraonline.com, jetbull.com, mrwin.com, and casinomulti.com.
UK gamblers may still access existing accounts and withdraw funds. EveryMatrix will also honor ante-post bets and pay winners who wagered on future bets, based on the gambling commission findings. Since it got into the white label business, EveryMatrix has passed several UKGC audits with only minor comments.
Ebbe Groes, EveryMatrix CEO, told Gambling Insider, “The Gambling Commission suspended our B2C license based on a general evaluation of how we carry out our obligations with regards to evaluation of potential problem gambling for players. It’s important to note there are no specific player cases involved here nor is it concerned with any technical breaches in our software.”
EveryMatrix promised to use the commission review period to tighten compliance processes throughout the firm. Groes said the company takes responsible gambling seriously and has implemented steps to address the commission’s concerns. “We are hopeful of getting this suspension revoked soon.”
The company respects the UKGC’s decision to suspend the license. “We acknowledge their wish for a substantially changed way of operating white label businesses in the future. We regret the impact this suspension has had on our loyal players, on our brands, and on our long-standing white label partners in UK,” Groes said.
He added that the company will view the event as a positive. “We are keen on maintaining EveryMatrix’s leading role as a provider in the B2B space, in the UK and globally. This is where our company has enjoyed tremendous growth in the past several years and we will now focus even harder on this.”
EveryMatrix is the second provider/white label operator to have its B2C license suspended by the commission in recent weeks. Last month, the agency began a review into the white label activities of technology supplier FSB Technology Ltd. The FSB review was launched after the company suspended the operations of its white label Blackbet brand. The Gambling Commission had expressed concerns “over the levels of due diligence performed on a small number of our white label partners,” FSB told Casino News.
Following an investigation by the Sunday Times, Russian bookmaker 1xBet had its UK website shuttered last month over allegations of questionable advertising practices. FSB said back then that it was reviewing its further collaboration with 1xBet.
