• Playtech has been identified as the unnamed competitor that commissioned a damaging 2021 report accusing rival live casino giant Evolution of operating in prohibited markets, according to NEXT.io.
• The Playtech Evolution revelation follows a nearly four year legal battle in the New Jersey court system, where Evolution successfully sued to unmask the report’s originator.
• Playtech allegedly paid the controversial Israeli private intelligence firm Black Cube £1.8 million to create the report, which caused Evolution’s market cap to drop by billions.
• Evolution CEO Martin Carlesund condemned the alleged actions, stating it “takes away a large piece from my belief in fair play, humanity in general and good ethics and morals.”
• Playtech potentially faces billions in legal liability, as Evolution has confirmed it will now add its rival as a defendant in its ongoing defamation lawsuit.

The Resolution to iGaming’s Biggest Whodunnit

In a stunning revelation that resolves one of the biggest mysteries in the history of the iGaming industry, Playtech has been identified as the anonymous company that orchestrated a damaging 2021 report against its main rival, Evolution. According to exclusive reporting by NEXT.io, Playtech paid the controversial Israeli private intelligence agency Black Cube £1.8 million to compile the document, which accused Evolution of breaching US sanctions and operating in prohibited jurisdictions.

The Playtech Evolution bombshell follows a nearly four year legal saga in the New Jersey court system. Evolution sued the law firm that fronted the report, Calcagni & Kanefsky (CK), demanding the identity of the anonymous client. After numerous court victories, including at the New Jersey Supreme Court, Evolution finally prevailed earlier this month, forcing Black Cube to reveal its client.

A ‘Deeply Disturbing’ Smear Campaign

Evolution CEO Martin Carlesund reacted strongly to the news. “ That a company, that is our competitor, can hire a company like Black Cube, hide underneath several layers of other companies and fabricate false statements about us to harm our business and reputation, is just so bad that it is hard to understand,” he told NEXT.io.

An Evolution spokesperson called it a “smear campaign” and confirmed the company would now amend its defamation lawsuit to add Playtech as a defendant. The spokesperson also alleged that Black Cube used “highly unethical” tactics, including false identities, secret recordings, and misrepresentation of comments from former and current Evolution staff, to fabricate its report. High level Playtech executives, including CEO Mor Weizer, are alleged to have communicated with Black Cube about the investigation.

Regulatory Vindication and Billions in Potential Damages

The 2021 report caused immense reputational and financial damage to Evolution, wiping billions off its market capitalisation. However, the company has since been vindicated by regulators. The New Jersey Division of Gaming Enforcement (NJDGE) conducted an extensive investigation into the report’s claims and concluded in February 2024 that it found “no evidence” to support the allegations. A New Jersey Superior Court judge also later determined the report was “untruthful and lacked veracity.”

With Playtech now identified as the alleged orchestrator of the report, the FTSE 250 company potentially faces enormous legal liability. Evolution is pursuing its defamation lawsuit for damages caused by the report, a figure that could run into the billions given the scale of the market cap destruction.

A ‘Bad Day for the Industry’

This revelation is a dark moment for the iGaming industry. The alleged actions go far beyond normal competitive rivalry and represent a deliberate, covert, and hugely damaging attack by one major B2B supplier against another. “ We never wanted to believe our adversary was a competitor, as it harms the reputation of the gaming industry as a whole,” Carlesund stated. “ We are angry and we are sad. It is a bad day for the industry.” The ongoing defamation lawsuit is now set to become one of the most high profile and potentially costly legal battles the iGaming industry has ever witnessed.

Expert Analysis: Reputational Fallout and Legal Ramifications Overshadow iGaming Industry

The unmasking of Playtech as the entity behind the Black Cube report targeting Evolution is a bombshell with profound implications, potentially reshaping the competitive dynamics and ethical standards within the iGaming B2B sector. This alleged corporate espionage goes far beyond typical competitive intelligence gathering, representing a deliberate and potentially illegal attempt to sabotage a major rival through a coordinated defamation lawsuit and regulatory complaints. The reputational damage to Playtech could be immense, potentially impacting investor confidence, client relationships, and its standing with global gambling regulators, regardless of the New Jersey court outcome. CEO Mor Weizer’s alleged involvement and previous evasive answers during earnings calls compound the severity, raising critical questions about corporate governance and leadership ethics at the highest level of the company.

For Evolution, this revelation is a hard fought vindication, achieved after years of costly legal battles and regulatory scrutiny initiated by the Black Cube report. Having been cleared by the NJDGE and now identifying the alleged source of the attack strengthens its position immeasurably as it pursues potentially billions in damages through the defamation lawsuit. The case highlights the vulnerability of publicly traded companies to anonymous, weaponised disinformation campaigns and the immense difficulty and expense required to fight back. Martin Carlesund’s comments reflect a deep sense of betrayal, suggesting the incident has irrevocably damaged trust within the iGaming industry.

Looking ahead, this Playtech Evolution saga will serve as a stark cautionary tale for the entire iGaming B2B landscape. It underscores the potentially devastating consequences of hyper-aggressive competitive tactics that cross ethical and legal lines. The focus will now shift to the New Jersey court proceedings, where the defamation lawsuit will determine the extent of Playtech’s legal liability. Beyond the financial penalties, the case could trigger calls for greater transparency and stricter ethical codes governing competitive practices within the iGaming industry. The revelation fundamentally alters the relationship between two of the sector’s biggest players and casts a long shadow over the reputation of corporate conduct in the global gambling regulators’ sphere.

Update: Playtech Confirms Commissioning Evolution Report, Share Price Plummets

Following the revelation that Playtech was the anonymous client behind the damaging 2021 Black Cube report targeting Evolution, the B2B supplier has issued a defiant response, stating it stands by its decision to commission the investigation. However, the market reacted severely, with Playtech’s share price crashing by as much as 34% in morning trading following the news.

In a statement, Playtech refuted claims of a “smear campaign,” asserting the investigation into Evolution was undertaken lawfully due to “credible and repeated concerns raised by operators, suppliers and regulators” about its rival’s activities in prohibited and unlicensed markets. Playtech argued that the report’s evidence shows Evolution’s practices undermine compliant operators and damage industry credibility. This defence comes despite US regulators and courts having previously found the report’s allegations to be unsubstantiated. Some market observers have labelled Playtech’s actions hypocritical, given its own historical presence in grey markets.

Analysts at Regulus Partners described the move as “worse than a crime, a mistake,” highlighting the potential multi billion dollar legal liability Playtech now faces in Evolution’s defamation lawsuit and the significant reputational damage inflicted on the wider iGaming industry. Black Cube also issued a statement, standing by its findings and claiming it has an “extensive body of evidence” proving Evolution’s alleged wrongdoing, which it intends to present in court. The focus now shifts to the next phase of the New Jersey court case, where Playtech will join Black Cube as a defendant in the high stakes defamation lawsuit.