Playtech highlights Evolution compliance failures as Spectrum Gaming report is released

A report commissioned by Evolution to refute allegations of illegal activity has instead corroborated several compliance concerns raised by intelligence firm Black Cube, according to Playtech, which originally commissioned the investigation that sparked an ongoing defamation lawsuit.

The Spectrum Gaming report, recently unsealed as part of Evolution’s defamation case against Black Cube and Playtech, highlights concerns around the availability of Evolution’s games in prohibited markets, regulatory implications of its practices, and lack of proactive customer monitoring, Playtech reported Wednesday.

Evolution had attempted to delay the report’s release, citing confidential and commercial sensitivity. The case dates back to November 2021, when Evolution filed suit against Black Cube after discovering the intelligence firm had been secretly investigating Evolution’s activities from December 2020 at Playtech’s behest.

What the Spectrum Report Found

While Spectrum concluded that Evolution did not engage in illegal practices and refuted allegations concerning cash payments and use of Evolution’s games in sanctioned countries, Playtech claims the report was unable to confirm or refute some of Black Cube’s claims because Evolution failed to provide significant information Spectrum had requested.

Playtech said Evolution failed to provide data that would have allowed Spectrum to determine whether gaming sessions had occurred in Iran, Syria and Sudan. However, Spectrum was able to specifically corroborate Black Cube’s claims that Evolution’s games were accessible and generating revenue in several prohibited locations, including Hong Kong, Singapore, the United Arab Emirates and Saudi Arabia.

The report also revealed that Evolution had accepted wagers in virtual currency without triggering the enhanced due diligence normally expected in such cases. Additionally, Evolution had continued earning revenue from operators in grey markets without enforcing contractual blocks or other remedial measures despite earlier allegations.

Ongoing Legal Battle and Regulatory Scrutiny

The defamation case stems from Black Cube’s investigation, which Evolution has described as a “smear campaign” involving secretly recorded interviews with staff members. The resulting dossier accused Evolution of supplying games into banned and sanctioned markets. Playtech has stood behind Black Cube’s investigation, previously describing it as “undertaken lawfully” to understand and verify “concerns of significant regulatory and commercial importance.”

Evolution sought to add Playtech as a defendant in the case in April. In a November statement, the company said its defamation litigation aimed to hold Playtech and Black Cube “accountable for its wrongdoing” and to protect shareholder value. Evolution declined to comment on Playtech’s latest statement.

Regulatory Settlement Follows Investigation

Last month, the UK Gambling Commission agreed a regulatory settlement with Evolution of £4.75 million after finding its games had been accessible via unlicensed operators in the UK. In July, the Commission said its investigation discovered the supplier had failed to maintain adequate anti-money laundering and customer due diligence controls in the UK.

The Commission considered suspending Evolution’s licence, but the supplier acted swiftly, carrying out ring-fencing controls across Europe to prevent its games from being used in grey markets. Evolution’s case against Black Cube continues.