In recent months we have been in consultation with UKGC, taken several steps to ensure that LeoVegas and our affiliates remain compliant with our licensing conditions and other applicable regulations, in accordance with our Affiliate Partner Terms and Conditions.

As we appreciate the challenges around implementing these changes, we have provided clear guidance of what we expect from our affiliates and have tried to keep an open line of communication with our affiliates to support them throughout this process. We are encouraged to see that several affiliates are taking these changes seriously and have taken on compliance managers or external legal counsel to ensure their ongoing compliance. This is something that we welcome. However, based on the response we have received to these initial actions, it is clear that these compliance requirements are not easily met for some affiliates.

Additionally, the recent announcements from UKGC and guidance from the CMA delivered at the Raising Standards conference clearly indicate further ongoing changes to compliance requirements going forward and, naturally, we must ensure our affiliates are prepared to address these needs. We are not and will not be able to continuously provide review and guidance services to all affiliates and would like to emphasise that the responsibility to achieve compliance ultimately sits with the affiliate.

For these reasons going forward, although we value all the hard work all our affiliates have been putting in to the partnership, we are only able to continue to work with a small number of affiliates who satisfy our compliance standards, share our commitment to compliance, and further have the operational scale to guarantee ongoing compliance and deliver a worthwhile contribution to our business.