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Evolution Gaming Rocked by Illegal Gambling Accusation
By Shane Addinall Nov 24, 2021 IndustryNew Jersey DGE received a complaint lodged against Evolution AB and the accusations include black market operations. Following reports from major media outlets, the igaming giant’s stock prices tumbled, costing them $3 billion.Following accusations about black market operations, Evolution AB experienced a severe share price plummet. A complaint filed on 12 November against the gaming giant effectively cost them $3 billion and the complainant is yet to be revealed.
The complaint reached the New Jersey Division of Gaming Enforcement (DGE) via Calcagni & Kanefsky, a law firm that is in control of all communications at this point. They say the complainant is an industry competitor of Evolution, and this is supposedly why they remained anonymous.
The allegations show that Evolution knowingly allows operators to use their games in countries on America’s sanctions list and countries where it is illegal to gamble online. Evolution Gaming has, what we could call, the monopoly in the live casino industry throughout the US. Online gambling is a fiercely competitive arena to play in and smearing tactics is not below some players in the game.
Supporting Illegal Markets to What End?
Any business aims to increase its market share, but in the US and live dealer casinos, Evolution and Ezugi have the whole pie to themselves. Ezugi is a subsidiary of Evolution and together they hold almost all the contracts with US online casinos that offer live dealer gaming. Industry experts are questioning whether the B2B software provider would deliberately jeopardise their position in North America.
The US law firm that filed the complaint with the DGE did so on behalf of an unnamed “US-based competitor”. According to Ralph Marra, senior attorney at Calcagni & Kanefsky, the allegations follow a private investigation that includes video recordings as evidence of the points highlighted in the complaint.
Investigators claim that Evolution casino games are accessible in Iran, Syria, and Sudan. The US list these three states as sponsors of terrorism and they are currently subject to sanctions from America. The complaint also claims they could access Evolution games in the illegal jurisdictions of Singapore and Hong Kong. According to the letter, unlicensed third parties in Spain, Italy, and Sweden offer Evolution games.
New Jersey state includes very specific terms regarding the character of its license holders. The regulatory body specifies that their igaming providers need to display integrity and honesty in their dealing and any black-market activities will lead to repercussions.
A Complaint with Questionable Intent
An important point to note is that Evolution is a B2B software provider. They are in the business of developing and supplying online casino games like slots and their forte is live dealer games. Evolution does not own online gambling platforms and they do not have a direct link to players or their money.
Online Poker Report (OPR) reached out to Evolution regarding the accusations and their response included:
“We sell licensed and certified games to licensed operators and aggregators. It is the operator that decides which markets to market themselves, that handle the KYC process and finally decide what players to accept. We use all tools at our disposal to block play from certain countries, including all countries on sanction lists mentioned in the article.”
With B2B supplier licenses in more than 40 global gambling sectors, Evolution is no stranger to regulatory stipulations and what it requires.
With new providers looking for a piece of the pie on fruitful US soil, it is worth considering what intention the undisclosed complainant carries. Secret sources reached out to OPR and GamblingNews regarding the information on the allegations. OPR reports they were aware of the complaint letter before the DGE received it because they received a tip from an anonymous firm. GamblingNews reports their source claims the complainant is not a competitor at all.
Hit Where it Hurts
While we wait for the DGE to comment on the matter, Evolution’s reputation is on the line. The igaming developer refutes all the allegations, but their share price indicates that stakeholders have concerns about the validity of this all.
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