Evolution’s company-commissioned review by Spectrum Gaming Group found that its games were played in prohibited markets and identified significant compliance issues, with the report now public during the company’s continuing legal dispute with Black Cube.
Evolution commissioned Spectrum Gaming Group later in 2021 after Black Cube produced a dossier alleging that the gambling group was operating in illegal markets and countries subject to US sanctions. Black Cube had been hired by Playtech to investigate Evolution’s business practices, and its work formed the basis of a complaint submitted by Calcagni & Kanefsky to the New Jersey Division of Gaming Enforcement in 2021.
Spectrum said its investigation corroborated allegations that Evolution’s games were played in prohibited locations including Hong Kong, Singapore, the United Arab Emirates and Saudi Arabia. It did not find evidence supporting Black Cube’s allegations that Evolution had operated in US-sanctioned markets such as Syria and Iran.
The review identified significant compliance issues at Evolution. Spectrum found that the company did not take proactive steps to ensure that customer-facing gambling operators using its products complied with contractual terms. It also found that Evolution had accepted wagers in virtual currency that warranted enhanced due diligence.
Spectrum found that Evolution received revenue from operators providing games in so-called grey markets, including Hong Kong and Singapore. It also found that Evolution had not taken remedial action after the allegations surfaced to block the particular sites or jurisdictions or enforce its contracts with clients in relation to that activity.
The findings sit alongside the regulatory and legal proceedings surrounding the original allegations. The New Jersey Division of Gaming Enforcement investigated the complaint and ultimately closed its probe. A New Jersey judge said last year that, viewed through the regulator’s handling of the matter, the Black Cube report was objectively baseless.
Evolution has said the Black Cube report contained false claims. It filed a defamation claim against Calcagni & Kanefsky in 2021 and added Black Cube as a defendant last year. Evolution’s request to add Playtech to the complaint was denied. Evolution has also said that Playtech paid Black Cube more than £1.8mn.
Playtech has rejected the suggestion that it engaged in a smear campaign. On Wednesday, the company said it stood by its decision to commission the original Black Cube investigation and remained confident that the court proceedings would confirm the investigation’s credibility and legitimacy and the concerns it raised.
The Spectrum report has become central to the defamation proceedings. Evolution had sought to keep it confidential, arguing that it contained proprietary information that could undermine its competitive position. The report was disclosed publicly on Tuesday in a New Jersey state court after Black Cube, which obtained it through discovery, successfully argued that it was crucial to its defence.
The disclosure brings Evolution’s contractual enforcement and jurisdictional controls into focus alongside the continuing defamation proceedings. Spectrum’s findings identified compliance issues involving operator contracts, virtual-currency wagers requiring enhanced due diligence and revenue received from operators providing games in grey markets including Hong Kong and Singapore.
