Widespread evidence
Secret footage of current and previous executives of online gambling firm Evolution AB shows them talking about how they offer their games in banned countries like China, Sudan, and Iran. The company’s share price dropped 11% on Wednesday morning after the news broke.
the footage was included as part of a defamation lawsuit filed in New Jersey
Bloomberg reported that the footage was included as part of a defamation lawsuit filed in New Jersey on Monday. Global boutique intelligence firm Black Cube captured the recordings between 2021 and 2024.
In an affidavit, it claims that the videos show that Evolution knowingly supplied games in markets where gambling is illegal or are on the US sanctions list.
Various recordings
Black Cube agents went undercover posing as investors or people trying to launch online casinos when talking to the executives.
In one instance, Evolution Commercial Director for Africa and Latin America Kfir Kugler reportedly showed an agent a spreadsheet detailing revenue from sanctioned countries like Sudan dating back to 2016, a time when the US listed the nation as a sponsor of terrorism.
Kugler also referred to the now ex-Syrian president Bashar al-Assad, stating that he was 100% sure that “Assad’s family are playing” the company’s games. Evolution responded that these comments were out of context and that he had been drinking alcohol at the time of the recording.
uses intermediaries to sell games in markets where online casinos are illegal
In another video, former Evolution US Commercial Director Jeff Millar told an undercover Black Cube agent that it uses intermediaries to sell games in markets where online casinos are illegal, such as China and Malaysia.
He also allegedly said that Evolution CEO Martin Carlesund gets regular briefs on these markets and doesn’t disclose specifics to investors. Talking about executives, Millar said on the tape, “They do their best to avoid the question of who exactly is playing their games in Asia, right? And he’s getting away with it.”
Accessing games in restricted countries
Other evidence submitted in the case are videos showing Black Cube agents accessing Evolution games in Iran and Syria through multiple online casinos, allegedly without using a VPN or any other technology to conceal their IP address.
constantly dealing with cybercrime
Evolution says that it deploys “industry-leading solutions” to prevent people in sanctioned countries from accessing games. It noted that it constantly deals with cybercrime, such as people copying the games illegally or hijacking live streams.
Origins of the case
Evolution claims the affidavit is a diversionary tactic and some of the “evidence is false and defamatory.” It has been suing a law firm to try to reveal the identity of the hidden client it represents.
The dispute’s origins date back to Calcagni & Kanefsky’s submission of a complaint to the New Jersey Division of Gaming Enforcement in 2021 on behalf of its client. The complaint included evidence gathered by Black Cube and claimed that Evolution operates in illegal markets. The company’s share price tanked after the news broke, and Evolution sued the law firm.
While New Jersey regulators did investigate the matter, it ended its case in February 2024 without taking any action. Evolution is trying to break into the US market, with a pending acquisition of gaming technology provider Galaxy Gaming for $85m. Certain rules prohibit companies getting licenses if they operate in illegal markets.
