According to Bloomberg, Evolution AB was named in an anonymous complaint filed by a competitor. The lawsuit, whose name has not been revealed, claims that Evolution is operating illegally in some markets that are currently sanctioned by the United States.
On November 12, the law firm Calcagni & Kanefsky LLP issued a letter to the New Jersey Division of Gaming Enforcement (DGE) noting the problem. Bloomberg News has obtained a copy of the letter and report.
Ralph Marra, senior counsel at the legal firm representing the undisclosed party, stated that the company that engaged them to bring up the problem had requested anonymity for the time being.
There's a lot on the line here because Evolution is the world's largest producer of live dealer casino games. It is also the most trusted brand in the industry. Evolution has a total stock value of $33 billion and is involved in many aspects of the live gaming experience. The company provides significant coverage for games like blackjack and roulette all across the world, including New Jersey and Pennsylvania.
Evolution has amassed a diverse portfolio of game shows that have remained at the top of the industry. When contacted by Bloomberg News, Evolution reacted through Carl Linton, the company's head of investor relations, claiming that the claims made against it were false.
"All applicable rules and regulations are strictly followed by evolution," Lincoln explained. "We have no direct interaction with the underlying player and no role in the processing of players' money,"
he continued.
In recent years, the United States has awarded a flurry of licenses, allowing iGaming and interactive wagering to take place across the country. While each state is free to set its own regulations for giving such licenses, New Jersey has stated in its legislative framework that licensees should show "good character, honesty, and integrity."
The government has made a strong statement against "bad actors," or corporations that participated in the US market before they had the legal authority to do so. This means that any "underground" operations will be investigated. Bloomberg reached out to the DGE for comment, but the regulator declined to comment.
According to the story, private detectives gathered information against the corporation. These investigators claim they were able to access Evolution games from nations subject to current US sanctions, such as Sudan, Iran, and Syria, where operators allegedly collected bets and sold Evolution software. According to the letter, members of Syrian President Bashar al-Assad's family were among those who gambled. All inquiries were conducted out under the radar.
On Wednesday, the Swedish gaming company Evolution AB (EVOG.ST) lost approximately $3 billion in market value after a US law firm accused it of violating US sanctions.
Investigators believe that they have hard evidence.
According to the letter, investigators claim to have recorded themselves playing at those blacklisted operators in order to establish a more persuasive case. According to the media, they shared the videos with Bloomberg. Furthermore, the investigators used IP addresses based in Singapore and Hong Kong, both of which prohibit online gambling. Investigators utilized Bitcoin to transmit their money and argued that Evolution allegedly permits its goods to be used by unlicensed operators in Italy, Sweden, and Spain.
Source: https://agbrief.com/news/hong-kong/18/11/2021/evolution-stock-tanks-on-accusations-of-illegal-wagers-from-h-k-spore/
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