The Spectrum report found no evidence for some of Black Cube’s key allegations, but did identify compliance shortcomings at Evolution
Playtech has welcomed the publication of a report commissioned by Evolution to examine allegations made by Black Cube, arguing that its findings raise concerns over Evolution’s games being available in prohibited markets and its compliance practices.
However, the report rejected several of Black Cube’s key allegations. Spectrum Gaming Group, which led the report, said it did not believe Evolution had engaged in illegal practices. It also specifically refuted allegations that Evolution accepted cash payments or made its games available in sanctioned countries.
The report was created several years ago but has only just been made public as part of ongoing litigation between Evolution and Black Cube. Evolution commissioned the report in response to Playtech hiring Black Cube in 2021 to investigate allegations surrounding operations in prohibited markets.
Concerns identified over unregulated markets
Spectrum found Evolution’s games were available to access in several markets where online gaming is prohibited. These included Hong Kong, Singapore, the United Arab Emirates and Saudi Arabia.
Spectrum also identified what it described as “significant” compliance issues at Evolution. It found that the company “does not take any proactive steps” to ensure customer-facing operators using its products comply with their contractual obligations.
Other findings included that Evolution received revenue from operators providing its games in so-called grey markets. Evolution also accepted wagers in “virtual currency” that should have triggered enhanced due diligence.
Furthermore, Spectrum said Evolution had not taken remedial action to block the sites or jurisdictions identified, nor enforce its contracts with customers in relation to the activity.
However, Spectrum did not substantiate all of Black Cube’s allegations and explicitly rejected some of its central claims.
Spectrum did not find any evidence that Evolution had operated in US-sanctioned markets including Iran and Syria. The report was also unable to confirm or refute certain other allegations after Evolution failed to provide information requested by Spectrum, including data relating to gaming sessions and revenues in Iran, Syria and Sudan.
As the Spectrum report dates back to August 2022, this means its findings cover Evolution’s practices at the time of the investigation, rather than its current compliance procedures.
Playtech ‘confident’ despite mixed Spectrum report
Responding to the report, Playtech said the findings support concerns raised by Black Cube over Evolution’s compliance practices. It noted the distribution of its games in prohibited markets and the company’s monitoring of its operators in particular.
Playtech also pointed to Spectrum’s finding that Evolution was aware of the countries from which games were being accessed, while failing to take proactive steps to ensure operators complied with contractual restrictions.
“Playtech is pleased that the Spectrum Report is now public, and welcomes the opportunity for the court, regulatory authorities and other stakeholders to review the document in its entirety.” the supplier said.
“Playtech stands by its decision to commission the original Black Cube investigation. We remain very confident that the court proceedings will confirm the credibility and legitimacy thereof and the significant concerns it raised.”
Evolution has previously pointed to the Spectrum report as evidence Black Cube’s allegations lacked merit. A separate investigation by the New Jersey Division of Gaming Enforcement (DGE) also examined the allegations, and this did not lead to any action being taken against Evolution.
Evolution-Black Cube legal battle continues
The dispute is just part of an ongoing defamation case between Evolution and Black Cube, with the parties continuing to contest the accuracy and significance of allegations made in 2021.
The legal battle has also continued alongside more recent regulatory developments involving Evolution. This includes the UK Gambling Commission’s action against the company over games being made available through unlicensed operators in Great Britain. Evolution agreed a £4.75m settlement over the matter.
Last month, Black Cube said this bolstered its case against Evolution. In a new filing, it said the UKGC licence review, as well as the failure of Evolution’s Galaxy Gaming acquisition, were further evidence that the court should grant its previously denied request for discovery relating to Evolution’s interactions with regulators.