A recently unsealed report commissioned by Evolution as part of its defamation lawsuit against Playtech and Black Cube has provided support for some of Black Cube's investigative claims. According to the Spectrum report, concerns were raised about the accessibility of Evolution's games in certain banned markets, potential regulatory consequences of its business practices, and inadequate monitoring of its customers.
The report came to light after Evolution attempted to postpone its release due to assertions of confidentiality and commercial sensitivity. This case has its origins in November 2021 when Evolution filed a suit against Black Cube, following revelations that the intelligence firm was clandestinely examining Evolution’s operations starting in December 2020.
Playtech had commissioned the investigation from Black Cube, which Evolution accused of orchestrating a “smear campaign” through covertly recorded employee interviews. The findings suggested that Evolution was providing games in markets that are prohibited and sanctioned, including regions under U.S. sanctions like Iran and Syria. Despite the ongoing controversy, Playtech endorsed Black Cube’s investigation as being carried out lawfully in response to significant regulatory and commercial concerns.
Subsequently, Spectrum was brought on by Evolution to counter Black Cube’s allegations. In a statement on Wednesday, Playtech noted that Evolution had publicly claimed the Spectrum report as vindication.
One significant finding of the Spectrum report was its conclusion that Evolution had not engaged in illegal practices. It also dismissed claims regarding cash transactions and the utilization of Evolution’s games in forbidden nations. However, Playtech contended that the Spectrum report could neither confirm nor disprove certain allegations made by Black Cube, primarily because Evolution failed to furnish Spectrum with essential information that had been requested.
Evolution declined to comment on these recent developments. Moreover, Playtech pointed out that the report confirmed Black Cube's claims regarding the generation of revenue from Evolution games in multiple prohibited markets, such as Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia.
Evolution has consistently asserted its innocence regarding illegal activities. In a statement to iGB in November, the company articulated that its legal action against Playtech and Black Cube sought to hold these entities accountable for alleged wrongdoing while safeguarding the interests of its shareholders.
Additionally, the report indicated that Evolution had overlooked risks associated with virtual currencies, as they accepted wagers in this form without enacting the heightened due diligence typically required under such circumstances. Despite earlier allegations, Evolution continued to derive income from operators in grey markets without implementing necessary contractual restrictions or other corrective actions.
The UK's Gambling Commission has taken notice, recently imposing a £4.75 million regulatory settlement on Evolution due to findings that its games were accessible through unlicensed operators within the UK. An investigation by the Commission in July revealed that Evolution had not maintained adequate controls related to anti-money laundering and customer due diligence in the UK, prompting considerations for license suspension. However, the supplier quickly responded by implementing measures to prevent its games from being used in grey markets across Europe. The case against Black Cube persists, with Evolution seeking to add Playtech as a defendant earlier this year.
