Playtech Confirms Commissioning Investigation Into Evolution — Shares Drop 30%

^{Pictured: Mor Weizer, CEO of Playtech}

Playtech* has confirmed that it was behind the 2021 “prohibited markets” report on Evolution,** prepared by Israeli intelligence agency Black Cube. Information linking Playtech to the investigation was first reported by NEXT.io.

Following the disclosure, Playtech’s shares fell sharply. According to Reuters, the stock plunged by more than 38% during trading and was down about 29.5% by 12:22 GMT.

In a statement, Playtech said that allegations of a “smear campaign” against Evolution were “wholly untrue” and designed “to distract from serious questions regarding Evolution’s business practices.”

The company clarified that its subsidiary, Playtech Software Limited, had hired Black Cube to investigate “credible and repeated concerns raised by operators, suppliers, and regulators” about Evolution’s activities in prohibited jurisdictions and the alleged supply of products to unlicensed markets.

“The investigation was conducted lawfully to better understand and verify matters of significant regulatory and commercial importance,” Playtech said.

The company also stated that the report contained findings suggesting that Evolution’s practices were “undermining compliant operators and damaging trust in the industry.”

However, two U.S. regulators — including the New Jersey Division of Gaming Enforcement (DGE) — found no evidence of wrongdoing by Evolution, and courts later deemed parts of the report unreliable.

“Playtech stands by its decision to commission the investigation and welcomes the legal process, which will confirm the validity of the materials,” a company representative said.

Black Cube also issued a statement, saying it was “proud of its work” and ready to defend its findings in court, describing the proceedings as “a decisive stage to verify the evidence gathered.”

Earlier reports indicated that Playtech paid £1.8 million ($2.4 million) for the creation and distribution of the document on Evolution’s activities in “prohibited markets.”

* Playtech — a British-Israeli iGaming developer.
** Evolution — a Swedish provider of live dealer games and online casino solutions.