A recent report commissioned by Evolution as part of its ongoing defamation lawsuit against Playtech and Black Cube allegedly supports several claims made by Black Cube during its investigation. According to the Spectrum report, there are concerns regarding the availability of Evolution's games in certain prohibited markets, the regulatory implications of its practices, and a lack of proactive monitoring of its customers, as reported by Playtech.
This document, commissioned by Evolution and recently unsealed in the ongoing legal proceedings, follows Evolution's attempt to delay its release, citing confidentiality and commercial sensitivity. The lawsuit, initially filed in November 2021, arose after Evolution discovered that Black Cube was covertly investigating its operations since December 2020.
Playtech had commissioned the investigation, which Evolution termed a "smear campaign" that involved secretly recorded interviews with its staff. The allegations against Evolution include supplying games to banned markets and sanctioned countries, specifically mentioning territories under U.S. sanctions such as Iran and Syria. Despite the serious accusations, Playtech has supported Black Cube’s investigation, claiming it was conducted lawfully to verify “concerns of significant regulatory and commercial importance.”
Spectrum's report was meant to counter Black Cube's allegations. Playtech stated that Evolution has "publicly characterized the Spectrum Report as exonerating it." However, Playtech contended that the report could neither confirm nor refute some of the claims made by Black Cube due to Evolution's failure to provide Spectrum with crucial data it had requested.
Evolution did not respond to requests for comment regarding this update. According to Spectrum, they do not believe Evolution engaged in illegal practices and rejected allegations about cash payments or the use of its games in sanctioned countries. Nevertheless, Playtech claimed that Evolution did not furnish necessary data to determine whether gaming activities had taken place in countries like Iran, Syria, and Sudan.
The report suggested that Spectrum specifically corroborated Black Cube's assertions that Evolution's games were accessible and generating revenue in several prohibited regions, including Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia. Evolution has historically denied any illegal involvement, emphasizing its defamation suit aimed at holding Playtech and Black Cube accountable for alleged wrongdoings and protecting shareholder interests.
Additionally, the report indicated that Evolution had overlooked risks associated with virtual currency, as wagers were accepted without implementing the enhanced due diligence typically expected. Furthermore, Evolution continued to earn from operators in so-called grey markets without enforcing contracts or implementing remedial measures despite previous complaints.
In a regulatory context, last month the UK Gambling Commission settled with Evolution for £4.75 million due to its games being accessible via unlicensed operators in the UK. In July, the Commission found that Evolution failed to implement adequate anti-money laundering and customer due diligence measures in the UK, leading them to consider suspending Evolution’s operating license. Evolution acted promptly, introducing robust controls across Europe to prevent its games from being utilized in grey markets. The litigation against Black Cube is still active, and Evolution attempted to include Playtech as a defendant earlier in April.
