The UK Gambling Commission has warned its licence holders that they will ultimately be held responsible for any wrongdoing by clients, in the wake of enforcement action against two high-profile suppliers.

The regulator highlighted Provision 1.1.2 of the Social Responsibility Code, part of its Licence Conditions and Codes of Practice, and it states that the licence holder is responsible for the third parties with whom they contract.

Provision 1.1.2 also clarifies that it is up to the licensee to ensure that these clients conduct themselves as if they were bound by the same conditions and codes of practice.

The Commission said: “Licensees must know their customers and be able to demonstrate knowledge, oversight and proactive interactions where appropriate. Any interventions must be completed in a timely manner.”

The licence holder’s suitability is brought into question if they fail to comply with these conditions, which could ultimately lead to the loss or suspension of its certification, the regulator added.

The Commission have also warned that all third parties with which operators and white label providers work must hold the relevant licences. It will publish further guidance in due course, in order to help licensees ensure that they are operating within its rules and regulations.

The warning comes after the Commission suspended EveryMatrix’s operating licence last week and instigated a review into the online gaming software supplier. The regulator said the decision was based on compliance activity at EveryMatrix, which included an examination of its customer interaction framework. This appears to relate to the activities of its white label sites.

EveryMatrix, whose B2B UK licence has not been affected by the suspension and remains active, has since outlined its plans to address the concerns which are raised by the Commission as to how it manages customer interactions.

The supplier said its licence will remain suspended until it can demonstrate to the regulator that it has taken steps to become fully compliant with its social responsibility obligations.

A review into another white label solutions provider, FSB Technology, was announced in August. The regulator launched a review of its licence amid questions over the conduct of two of its clients, BlackBet and 1xbet.