A report ordered by Evolution as part of its defamation lawsuit against Playtech and Black Cube has reportedly corroborated various claims made by the intelligence firm Black Cube during its investigation. The findings of the Spectrum report raise concerns about the availability of Evolution's games in certain prohibited markets and examine the regulatory implications of its practices, alongside the company's lack of proactive monitoring of its customers, as reported by Playtech.
This report, recently unsealed in the ongoing legal battle, comes after Evolution attempted to delay its release due to concerns about confidentiality and commercial sensitivity. The case began in November 2021, when Evolution filed against Black Cube after it was discovered that the firm had been conducting covert investigations into Evolution's activities since December 2020.
Playtech is responsible for hiring Black Cube for the investigation, which Evolution has labeled a "smear campaign" characterized by secretly recorded interviews with its employees. The dossier compiled by Black Cube accuses Evolution of operating in banned and sanctioned markets, including regions under U.S. sanctions like Iran and Syria.
Up to now, Playtech has supported Black Cube's investigation, asserting it was conducted lawfully to address serious regulatory and business concerns. In response, Evolution commissioned Spectrum to create an independent report to counter Black Cube’s allegations. Recently, Playtech revealed that Evolution had portrayed the Spectrum Report as exonerating.
Interestingly, while Spectrum reported that it found no evidence of illegal practices by Evolution, Playtech contended that the report was unable to confirm or deny several claims made by Black Cube because Evolution failed to provide vital information requested by Spectrum. Evolution did not comment on these developments.
Spectrum noted in its report that it found no illegal activities associated with Evolution, contradicting allegations of cash payments and the use of Evolution games in sanctioned territories. Despite this, Playtech asserted that Evolution did not submit necessary data that could have clarified whether gaming sessions took place in Iran, Syria, and Sudan. Furthermore, it indicated that Spectrum could specifically substantiate Black Cube's claims about Evolution's games being accessible and generating income in various prohibited locations, including Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia.
For years, Evolution has denied involvement in any illegal activities. In a statement from November, the company asserted that its defamation lawsuit against Playtech and Black Cube was aimed at holding them accountable for misconduct and safeguarding shareholder interests.
The report also highlighted that Evolution overlooked risks related to virtual currencies, accepting bets in such currencies without implementing the enhanced due diligence required in these situations. It also noted that Evolution continued to earn revenue from operators in grey markets without enforcing the necessary contractual prohibitions, despite previous allegations.
Looking ahead, regulators are likely to increase scrutiny. Last month, the UK Gambling Commission reached a regulatory settlement with Evolution for £4.75 million, after discovering that its games were accessible through unlicensed operators in the UK. In July, the Commission indicated that its investigation revealed Evolution had not maintained sufficient anti-money laundering and customer due diligence controls within the UK, leading it to consider suspending the company's license. Evolution acted promptly, implementing ring-fencing controls throughout Europe to prevent access to its games in grey markets.
Simultaneously, Evolution's lawsuit against Black Cube is ongoing, with the company even seeking to add Playtech as a defendant in April.
