A Manx company linked to a raft of high-profile sports betting brands has pulled out of the British market following an investigation by the UK gambling regulator.

TGP Europe was a leading 'white label' agent which hosted branded online gaming facilities for clients mainly based in the Far East.

A number of these online gaming businesses secured major sponsorship and Asian betting partnership deals with Premier League football clubs which have been warned they now risk promoting unlicensed gambling businesses after TGP Europe’s withdrawal from the UK market.

This month all 11 of the white label brands TGP Europe hosted have closed their UK operations.

The UK Gambling Commission confirmed that TGP Europe had surrendered its licence after being told it needed to pay a £3.3m penalty and make significant improvements if it wanted to continue trading in Great Britain.

It said the fine was for failing to carry out sufficient checks on business partners and breaching anti-money laundering rules.

TGP’s white label business model involved running a gambling business using the branding of other businesses.

A Gambling Commission investigation revealed failures to carry out effective due diligence on each entity involved and the source of funds for business arrangements.

It found that TGP Europe did not sufficiently consider money laundering risks of any activity by a third-party that is illegal, in either UK or the territory in which it is conducted.

This is the second time TGP Europe has breached regulations.

In 2023 it was fined £316,250 for failures including not adequately considering and mitigating money laundering risks posed by business-to-business relationships, and having ineffective policies and procedures in relation to due diligence undertaken prior to white label agreements.

TGP’s exit from the UK market means several football clubs now have sponsorship arrangements with unlicensed gambling businesses.

The Commission has contacted AFC Bournemouth, Fulham FC, Newcastle United FC, Wolverhampton Wanderers FC and Burnley FC warning of the risks of promoting unlicensed gambling websites.

It said it is seeking assurance from the clubs that they have carried out due diligence on their white label partners and that consumers in Great Britain cannot transact with the unlicensed sites.

Club officers have been warned they may be liable to prosecution and, if convicted, face a fine, imprisonment or both if they promote unlicensed gambling businesses that transact with consumers in Great Britain.

John Pierce, the Gambling Commission’s 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.’

He continued: ‘We have already been in contact with several football clubs 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. We will also conduct ongoing spot checks as necessary to ensure they are not accessible to consumers in Great Britain by any means. Should any of these sites be available to GB consumers, we will take appropriate action.

‘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.’

While TGP Europe is registered at offices in Castle Street, Douglas, it was licensed and regulated by the Gambling Commission in the UK and is not involved in any e-gaming activities here.

The 11 sites linked to TGP Europe that have closed down their UK websites are 12bet, 96uk, bj88, DEBET, DuelBits, Fun88, Nova88Bet, Sportsbet.io, SBOTOP, Ticbet and UK-WL.

Messages have appeared on their UK sites notifying customers that they are no longer available to both new and existing players as from May 8.

Among them is SBOTOP and Fun88.co.uk which both say on their websites: ‘In an effort to efficiently proceed with the closure of the website, we disabled any new registrations from Thursday May 8, and all existing players have been contacted to confirm closure of their accounts and settlement of open bets.’

Any outstanding balances have been withdrawn back to the last deposit method used, they said, and if this was not possible, they had attempted to contact all affected players to arrange the withdrawal of their funds.

SBOTOP is front of shirt sponsor for Fulham FC. Its parent company is Celton Manx which surrendered its Isle of Man gaming licence on May 9. Fun88 was shirt sponsor for Newcastle United for six seasons and become the club’s official Asian betting partner.

The white label system allows a licensed operator to host a tailor-made gambling platform on behalf of, and under the brand of, another business. It gives these white label partners, often based in the Far East, access to the UK market - and has provided them global exposure via high-profile sports sponsorship deals.

But critics of the system claim it does not provide adequate scrutiny and could potentially facilitate illegal betting.

A UK government white paper on gambling reform in 2023 acknowledged that concerns have been raised that white labels amount to ‘hiring out’ of a gambling licence to companies that would unlikely be suitable to hold a British licence in their own right.

Gambling Minister Fiona Twycross recently hinted that action would be taken to close the loophole.

TGP Europe’s registered office is above Joe Jennings bookmakers’s branch on Castle Street, which closed in April.

Its telephone number does not connect and our queries to the company submitted by email have gone unanswered. There was no answer when we called at the office in person.

A spokesman for the Isle of Man Gambling Supervision Commission said: ‘TGP is not currently licensed by the GSC and we’re unaware of any licensable activity being conducted by it in the Isle of Man.’