UKGC investigating Blackbet
FSB Technology has voluntarily suspended the website of its white-label partner Blackbet amid an investigation being launched by the UK Gambling Commission (UGKC).
This is a voluntary suspension of the platform until they review the results from the commission’s review. According to the Gambling Commission, the reason for this investigation relates to section s116 of the Gambling Act.
voluntary suspension of the platform until they review the results from the commission’s review
The commission can launch a review of any UK-facing platform if they receive a report that a particular company is providing services to its users which are not part of their operating license.
This investigation will allow the Gambling Commission to determine whether Blackbet is fit to continue operating under the license they have been issued, or if they should instead be stripped of their license.
Response from FSB
The CEO and co-founder of FSB David McDowell spoke to Gambling Insider about this investigation. He said: “The Gambling Commission has recently expressed concerns over the levels of due diligence performed on a small number of our white label partners.”
He went on to say that they are complying fully with this investigation. They are hoping to come to a resolution for these issues in the near future.
McDowell maintained that these issues only relate to a “nominal amount of white label licenses only.” They do not expect to have any further site suspensions or impact on their operations.
FSB will be complying in a transparent fashion with the commission. All unsettled bets will be honored only until 23:59 on Tuesday, August 27. Any bets that are still open following this date will be made void. Funds can still be withdrawn from accounts on Blackbet.
It was on August 12, 2019 that the 1xBet brand was closed down in the United Kingdom. This suspension followed the publication of revelations from an investigation by The Sunday Times.
This Sunday Times investigation led to the Gambling Commission opening up their own investigation on 1xBet and its relationship with FSB.
FSB is now looking into their relationship with 1xBet going forward. They eased concerns by saying that while the site is suspended that the balances of players will be protected. FSB maintains that they have always been compliant with regulations in the UK.
1xBet began life by focusing on the Russian market before expanding. They now have their headquarters in Cyprus and have a license in Curacao. As a result of moving to Cyprus, they are now part of the online gambling payment blacklist in Russia.