Evolution, involved in a defamation lawsuit against Playtech and Black Cube, commissioned a report by Spectrum that has seemingly backed several allegations made by Black Cube during its investigation. The report raises concerns about the accessibility of Evolution's games in certain prohibited markets, alongside regulatory implications and insufficient monitoring of its customers, as articulated by Playtech.
This report, recently unsealed in the defamation case, follows Evolution's attempt to delay its release due to claims of confidentiality and commercial sensitivity. The case dates back to November 2021 when Evolution filed against Black Cube, after the firm was discovered to have conducted clandestine investigations into Evolution's operations starting December 2020.
Playtech had hired Black Cube, which Evolution dubbed a "smear campaign" aimed at discrediting them through secretly recorded interviews with employees. Allegations included Evolution allowing its games into banned markets, notably those under U.S. sanctions, like Iran and Syria. Despite this, Playtech has maintained support for Black Cube’s investigation, which it described as lawfully executed to address significant regulatory issues.
Spectrum's report was commissioned by Evolution to challenge Black Cube's claims. In a statement released on Wednesday, Playtech asserted that Evolution has misrepresented the Spectrum Report, suggesting it exonerates them, although Playtech maintains that the report could neither confirm nor refute Black Cube's allegations due to Evolution’s lack of cooperation in providing requested information.
While Spectrum's investigations did not find evidence of illegal activity by Evolution, it did not receive sufficient data to verify gaming sessions in Iran, Syria, or Sudan. Playtech claims that Spectrum was able to substantiate Black Cube's assertions regarding Evolution's games being operational and profitable in several restricted areas, including Hong Kong, Singapore, the UAE, and Saudi Arabia.
For years, Evolution has denied wrongdoing. In November, they expressed that their litigation against Playtech and Black Cube aims to hold them accountable for alleged malfeasance and protect shareholder interests. The report indicated that Evolution appeared to disregard virtual currency risks by accepting wagers in such currency without the enhanced due diligence typically required.
Additionally, Evolution was reported to have continued generating income from operators in grey markets, neglecting to enforce expected contractual limitations or corrective measures, despite prior allegations.
In related scrutiny, the UK Gambling Commission recently reached a regulatory settlement with Evolution amounting to £4.75 million after determining that Evolution’s games were available through several unlicensed operators in the UK. Following an investigation, the Commission found that Evolution had not upheld adequate anti-money laundering and customer due diligence practices. Although they contemplated suspending Evolution’s license, the company responded by implementing comprehensive controls across Europe to avert its games from entering grey markets.
The legal battle between Evolution and Black Cube is ongoing. In April, Evolution sought to add Playtech as a co-defendant in the case.
