UKGC strips UK licence from Maxent over change in ownership
Commission “not satisfied” with source of funds used to acquire Maltese-headquartered casino operator
The Gambling Commission has revoked the UK operating licence of online casino operator Maxent Limited over concerns relating to the source of funds used to acquire the egaming business in a recent transaction.
Maxent, which operates the Slotty Vegas and BetAtCasino sites, will officially lose the licence on 18 June.
The 2005 Gambling Act allows the UKGC to revoke the licence of any acquired operator, where it believes the new controller would not have been licensed initially.
Detailing its decision, the UKGC said it was not satisfied as to the source of funds used to acquire and support the licensee at the time of the change of corporate control.
The regulator said it had identified “concerns” relating to the new owner’s suitability to be licenced, asserting he had provided conflicting information and had “failed to be full and frank in his dealings with the commission.”
Founded in 2010, Maxent Limited were previously known as NRR Entertainment until the latter half of 2018, when the operator was acquired by an unknown party. At that time, a change in corporate ownership application was submitted to the UKGC on behalf of the new owners.
Richard Williams, consultant solicitor at Keystone Law, noted the revocation would “cause concern for operators who think changing ownership of licensed entities goes through on the nod”.
“It’s really important that operators understand the need to make an application to the Commission for change of corporate control within five weeks of a person becoming a new controller (generally owning 10% or more of the shares),” Williams said.
“An application can be made for approval in advance and many corporate transactions will be made conditional on such approval. It’s risky to acquire a company without knowing that approval will be granted, so if in doubt, make applications in advance.”
Maxent Limited also has a B2C licence in Malta.
Williams said the Malta Gaming Authority could look to conduct its own investigation into Maxent Limited following the revocation of its UK licence.
When approached by EGR, Maxent Limited said it was currently preparing its legal response concerning the decision.