A new report commissioned by Evolution has provided support for claims made by Black Cube regarding Evolution's operations, particularly as they relate to compliance failures. The Spectrum report, which emerged in the ongoing defamation case against Playtech and Black Cube, outlines concerns about the availability of Evolution's games in markets where they are prohibited, the regulatory implications of such practices, and gaps in customer monitoring.
The report was made public following Evolution's attempt to delay its release, arguing that it contained commercially sensitive information. This defamation case began in November 2021 when Evolution filed against Black Cube after it was revealed that Black Cube had been secretly surveilling Evolution's activities since December 2020.
Playtech had commissioned the investigation from Black Cube, which Evolution labeled as a “smear campaign” featuring clandestinely recorded interviews with its employees. The investigation accused Evolution of distributing games to banned markets, including regions subject to U.S. sanctions like Iran and Syria. Playtech maintains that Black Cube's investigation was conducted lawfully and was necessary to address significant regulatory concerns.
In a recent statement, Playtech noted that the Spectrum report, which was commissioned to counter Black Cube's claims, could not definitively confirm or refute allegations made by Black Cube due to Evolution's failure to provide necessary information. Evolution did not respond to requests for comment on this matter.
The Spectrum report, however, stated that it did not find evidence of any illegal practices by Evolution, which included dismissing claims of cash payments and the use of its games in sanctioned countries. Yet, Playtech argued that Evolution had not offered data that could clarify whether gaming activities had occurred in Iran, Syria, and Sudan.
Notably, the report corroborated some claims made by Black Cube regarding the accessibility and profitability of Evolution’s games in multiple banned regions, including Hong Kong, Singapore, the United Arab Emirates, and Saudi Arabia. Evolution has consistently denied any wrongdoing, asserting that its defamation lawsuit seeks to hold Playtech and Black Cube accountable while safeguarding shareholder interests.
Additionally, the report pointed out that Evolution neglected virtual currency risks by placing bets without the enhanced scrutiny typically required. It also revealed that Evolution continued to generate revenue from operators in grey markets despite earlier allegations, without enforcing necessary contractual restrictions.
Regulatory scrutiny of Evolution has been intensifying. Recently, the UK Gambling Commission reached a settlement with Evolution for £4.75 million, due to findings that revealed the company's games were accessible through unlicensed operators in the UK. In July, the Commission indicated that Evolution's failure to maintain sufficient anti-money laundering and customer due diligence controls could have led to a suspension of its license; however, Evolution implemented immediate measures across Europe to safeguard against misuse in grey markets.
Evolution's legal battle against Black Cube is ongoing, with efforts to include Playtech as an additional defendant having been made in April.
