Playtech has highlighted compliance concerns contained in a Spectrum Gaming report commissioned by Evolution during its defamation case against Playtech and Black Cube.
The report, which was recently unsealed, reportedly corroborates some findings from Black Cube’s investigation. Evolution had sought to delay its release, citing confidential and commercially sensitive material.
Spectrum raised concerns about the availability of Evolution’s games in prohibited markets, the regulatory implications of its practices and the lack of proactive customer monitoring, according to Playtech.
Report disputes some allegations but leaves others unresolved
The legal dispute began in November 2021, after Evolution sued Black Cube. The intelligence firm had secretly investigated Evolution’s activities from December 2020. Playtech had commissioned that investigation, which Evolution described as a “smear campaign” involving secretly recorded interviews with staff members.
Black Cube’s dossier alleged that Evolution supplied games in banned and sanctioned markets, including Iran and Syria, which are subject to US sanctions. Evolution has maintained that Black Cube’s work was “undertaken lawfully” to investigate and verify “concerns of significant regulatory and commercial importance”.
Evolution commissioned the Spectrum report to rebut those allegations. In a statement released on Wednesday, Playtech said Evolution had publicly presented the report as exonerating it.
Spectrum said it did not believe Evolution had engaged in illegal practices. It also rejected allegations involving cash payments and the use of Evolution’s games in sanctioned countries.
However, Playtech said the report could not “confirm or refute” some of Black Cube’s claims because Evolution had not provided significant information requested by Spectrum. Playtech also claimed that Evolution had withheld data needed to establish whether gaming sessions had taken place in Iran, Syria and Sudan.
Spectrum did “specifically corroborate” claims that Evolution’s games were accessible and generating revenue in several “prohibited locations”, according to Playtech. Those locations included Hong Kong, Singapore, the United Arab Emirates and Saudi Arabia.
Evolution declined to comment on Playtech’s update. The supplier has repeatedly denied involvement in illegal activity. In a statement to iGaming Business in November, it said the defamation proceedings were intended to hold Playtech and Black Cube “accountable for its wrongdoing” and protect shareholder value.
UK settlement adds regulatory pressure
The report also said Evolution had accepted wagers in virtual currency without applying the enhanced due diligence normally expected in such circumstances. It further said the company continued earning revenue from operators in grey markets without imposing contractual blocks or other remedial measures, despite earlier allegations.
Last month, the UK Gambling Commission reached a £4.75 million regulatory settlement with Evolution after finding that its games had been accessible through several unlicensed operators in the UK.
In July, the Commission said Evolution had failed to maintain adequate anti-money laundering and customer due diligence controls in the UK. It considered suspending the supplier’s licence, but Evolution subsequently introduced ring-fencing controls across Europe to prevent its games from being used in grey markets.
Source: iGaming Business
