Playtech stands by Evolution investigation as shares crash 30%
Table of contents
- Playtech defends commissioning the 2021 Black Cube report on Evolution’s business practices.
- Company insists investigation addressed “credible concerns” about Evolution operating in prohibited markets.
- Playtech shares plummet by up to 39% following Evolution’s defamation accusations.
Playtech has defended its decision to commission the controversial 2021 report on Evolution’s business practices, stating it stands behind the investigation even as its shares crashed by up to 39% on Tuesday.
The gaming technology company rejected Evolution’s accusations of orchestrating a “smear campaign,” claiming the investigation addressed legitimate regulatory concerns.
Playtech’s official response
In a statement published on 21 October, Playtech categorically denied Evolution’s allegations.
The company said the suggestion that its subsidiary Playtech Software Limited “engaged in a smear campaign is wholly untrue and is designed to distract from serious questions about Evolution’s business practices”.
Playtech insisted its subsidiary commissioned “an independent business intelligence firm to investigate credible and repeated concerns raised by operators, suppliers and regulators about Evolution’s activities in prohibited and sanctioned markets.”
The company described the investigation as undertaken “lawfully to better understand and verify concerns of regulatory and commercial importance”.
Playtech’s official statement
Company maintains investigation legitimacy
“The report published, as a result of the investigation, clearly evidences that Evolution’s business practices undermine lawful and compliant gambling operations,” Playtech stated in its response.
The company argued that such conduct “damages trust in the credibility of the entire industry and also ultimately impacts government tax collection.”
Playtech added that Evolution “continues to seek to avoid legitimate scrutiny rather than address longstanding questions about its conduct”.
Market reaction and legal outlook
Playtech shares fell as much as 39%, erasing more than £400 million of market value following Evolution’s revelations. The stock was on track for its worst trading day since July 2018.
“Playtech welcomes court examination of the report and its findings,” the company concluded in its statement.
“Playtech is confident that these proceedings will confirm the credibility and legitimacy of the investigation and the importance of the issues it seeks to address”.
The legal battle between the two gaming technology giants is expected to extend through 2026, with Evolution pursuing damages for what it claims was multi-billion dollar harm to its business and reputation.
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