A recent report commissioned by Evolution, part of its ongoing defamation case against Playtech and the intelligence firm Black Cube, has reportedly supported some of Black Cube's findings. The Spectrum report raises concerns about the availability of Evolution's games in certain banned markets, regulatory implications, and the company's lack of proactive customer monitoring, according to Playtech’s statement.
This report was unsealed as part of the ongoing legal proceedings, despite Evolution's efforts to delay its release due to issues of confidentiality and commercial sensitivity. The legal battle began in November 2021 when Evolution filed a case against Black Cube, which had been investigating the company's practices since December 2020.
Playtech had initially commissioned Black Cube for the investigation, which Evolution has labeled as a smear campaign, including secretly recorded interviews of its staff members. This investigation included accusations that Evolution supplied games to prohibited and sanctioned markets, including regions under U.S. sanctions like Iran and Syria.
In an attempt to counter these allegations, Evolution commissioned the Spectrum report. Playtech noted that Evolution has publicly claimed the report exonerates them. Contrary to Evolution’s assertions, Playtech pointed out that the Spectrum report could neither confirm nor refute many of Black Cube's claims, attributing this inability to Evolution's lack of cooperation in providing requested information to Spectrum.
While Evolution declined to comment, Spectrum’s findings stated that it did not believe the company had engaged in illegal practices and rejected allegations related to cash payments and unauthorized usage of its games in sanctioned territories. However, Playtech remarked that Evolution failed to furnish enough data to allow Spectrum to clarify whether gaming sessions had legitimately taking place in Iran, Syria, and Sudan.
Interestingly, Playtech indicated that Spectrum was able to substantiate Black Cube's claims regarding the accessibility of Evolution’s games in various prohibited locations such as Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia.
For years, Evolution has firmly denied any engagement in illegal activities. The company's defamation litigation targets Playtech and Black Cube in part to hold them responsible for their alleged wrongdoings and to safeguard shareholder interests. The report also highlighted that Evolution had neglected risks associated with virtual currency, accepting wagers without implementing the additional due diligence typically required. Furthermore, it continued to generate revenues from operators in grey markets without taking necessary remedial actions despite existing allegations.
In a recent resolution, the UK Gambling Commission reached a regulatory settlement of £4.75 million with Evolution after discovering that its games had been accessible through several unlicensed operators in the UK. The Commission had found that Evolution failed to uphold adequate anti-money laundering and customer verification measures, prompting a consideration to suspend Evolution’s license. In response, the company took immediate actions across Europe to prevent the use of its games in grey markets.
Evolution’s legal battle with Black Cube continues, with the company even attempting to add Playtech as a defendant in April.
