In November 2021, allegations emerged that Evolution products were being offered in countries under US trade sanctions, leading to a case that caught the attention of law firm Calcagni & Kanefsky LLP. The New Jersey regulator was notified of the alleged misconduct, which Evolution vehemently denied, attributing the claims to an anonymous third party intent on tarnishing their reputation. Despite the backlash, Evolution clarified that they collaborate with regulators and operators to implement tools that prevent play from restricted countries, including those on US sanction lists like Syria, Iran, and Sudan. The accusations had a significant impact on Evolution’s market capitalization, causing billions in losses.
Following a thorough investigation, the New Jersey Division of Gaming Enforcement (NJDGE) decided not to take action against Evolution, proclaiming the matter resolved. Evolution released a statement expressing their satisfaction with the NJDGE’s findings, affirming that they neither endorsed nor benefited from their content being offered in prohibited jurisdictions. The company acknowledged the need to enhance their due diligence and compliance procedures, a move supported by the NJDGE.
To access Evolution products in restricted countries, individuals would need to employ complex technical tactics, according to Evolution’s defense against the allegations. The provider maintained that any access in these markets was achieved through deliberate circumvention of their systems, typically via VPNs or other sophisticated methods. Evolution condemned such actions as unethical attempts to discredit the company’s integrity.
| Evidence of Compliance |
|---|
| Valid licences required for partners in active markets |
| Operators responsible for KYC checks on players |
| Enhanced compliance processes implemented by Evolution |
While the NJDGE’s decision brought relief to Evolution, the provider still faces legal challenges related to alleged investor deception. A class action lawsuit filed against Evolution accuses the company of misleading investors regarding its growth projections and compliance practices between February 14, 2019, and October 25, 2023. Evolution’s CEO and CFO are named as defendants in the ongoing case.
