A recently unsealed report commissioned by Evolution in its ongoing defamation case against Playtech and Black Cube appears to support several claims made by Black Cube during its investigation. Spectrum Gaming's findings raise concerns regarding the availability of Evolution's games in certain banned markets, the regulatory implications of its practices, and the absence of thorough monitoring of its clients, according to Playtech.
The report, requested by Evolution, was made public despite Evolution's attempts to delay its release by citing issues related to confidentiality and commercial sensitivity. This case, initiated in November 2021, stems from allegations that Black Cube conducted secret investigations into Evolution starting in December 2020.
Playtech had tasked Black Cube with this investigation, which Evolution characterized as a smear campaign featuring secretly recorded interviews with its employees. The dossier produced by Black Cube accused Evolution of distributing games in prohibited areas, specifically targeting nations like Iran and Syria that are under U.S. sanctions.
Despite standing by Black Cube's investigation, which they termed a lawful effort to investigate critical regulatory and commercial concerns, Playtech claims that the Spectrum report fails to confirm or dispute several of Black Cube's allegations due to Evolution withholding significant information requested by Spectrum.
While Evolution declined to comment on this update, Spectrum's report did assert that it found no evidence of illegal activities on Evolution's part and dismissed claims regarding cash payments and the use of its games in sanctioned regions. Conversely, Playtech indicated that Evolution did not provide sufficient data for Spectrum to assess whether gaming sessions occurred in countries like Iran, Syria, and Sudan.
Moreover, Playtech noted that Spectrum was able to corroborate Black Cube's assertions that Evolution's games were accessible and generating revenue in several restricted areas, including Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia.
For several years, Evolution has maintained its innocence regarding illegal practices. In November, the company stated that its defamation lawsuit aimed to hold Playtech and Black Cube accountable for their alleged misconduct while protecting shareholder interests.
The report also highlighted that Evolution had disregarded the risks associated with virtual currencies, accepting wagers in these forms without implementing the enhanced due diligence that such practices typically demand. Additionally, Evolution continued to collect revenue from operators in grey markets without enforcing contracts or taking remedial actions despite earlier concerns.
Last month, the UK Gambling Commission reached a regulatory agreement with Evolution resulting in a £4.75 million settlement, prompted by findings that its games were accessible through a small number of unlicensed operators within the UK. The Commission had indicated that Evolution's anti-money laundering and customer verification controls were inadequate and considered suspending its license. However, Evolution quickly acted by implementing ring-fencing measures across Europe to prevent access to its games in grey markets.
As the legal battle with Black Cube progresses, Evolution even sought to include Playtech as a defendant earlier this year.
