Evolution has alleged that Playtech was responsible for commissioning an investigation by Black Cube that included “highly inflammatory and knowingly false claims” about the live casino and slots supplier.
In a press release published this morning, 21 October, the Stockholm-listed giant said Playtech Software Limited had paid Israeli intelligence firm Black Cube more than £1.8m to “fabricate a report they knew would have extremely harmful repercussions”.
The report was subsequently sent to regulators and media by Calcagni & Kanefsky LLP, the law firm representing Black Cube, in November 2021.
The document claimed Evolution’s games were found to be available in black markets such as Iran, Syria and Sudan.
The publication of the claims led to billions being wiped off Evolution’s valuation as its share price plummeted. The allegations were also shared with the New Jersey Division of Gaming Enforcement and the Pennsylvania Gaming Control Board.
In December 2021, Evolution filed a lawsuit against Calcagni & Kanefsky and the then-unknown parties behind the report, for defamation, trade libel, tortious interference with prospective economic advantage, fraud and other illegal conduct.
The case is ongoing in the Superior Court of New Jersey.
However, in February 2024, both New Jersey and Pennsylvania regulators closed their investigations into Evolution without taking corrective action.
The New Jersey regulator said it had found “no evidence […] showing that Evolution took illegal bets from New Jersey, another state, or any other prohibited jurisdiction”.
In February of this year, the New Jersey Superior Court directed Calcagni & Kanefsky to disclose the identity of its anonymous client and the report’s authors.
In April, Black Cube was identified as the author, but the commissioning body behind the report was not made public, as Calcagni & Kanefsky claimed it did not know its identity.
Evolution amended its lawsuit in June to include Black Cube for its “responsibility in engineering, preparing and disseminating the defamatory report”.
Then, in August, Black Cube founder Avi Yanus filed an affidavit in which he claimed there was new evidence to back up the 2021 report.
Despite that, in September, the New Jersey Superior Court described the affidavit as “self-serving” and the original 2021 report to be “objectively baseless”. The court told Black Cube to reveal its client’s identity.
Black Cube appealed this ruling, which was denied. Evolution then said it has “learned through discovery” that Playtech was behind the report.
Playtech’s shares have plummeted almost 30% in London to 246p. Evolution’s stock is up around 2%.
The alleged timeline
Providing a timeline of the allegations, Evolution claimed Playtech hired Black Cube in December 2020 to produce a report “designed to harm Evolution’s business and destroy its reputation”.
Evolution added: “High-level Playtech executives, including but not limited to CEO Mor Weizer, communicated with Black Cube regarding the investigation and report.”
Black Cube conducted its investigation throughout 2021, which involved secret recording with at least five current or former Evolution employees and board members.
“Black Cube edited these videos and audio clips and cherrypicked portions of these interactions to manufacture a misleading and defamatory report that made sweepingly false allegations about Evolution,” Evolution added.
Evolution has also alleged Calcagni & Kanefsky was paid $33,700 for its services, which included “purportedly reviewing the report, drafting a cover letter that reiterated the report’s false claims and sending it to Evolution’s regulators”.
Evolution said it would now add Playtech to its existing lawsuit, with litigation expected to extend through 2026.
An Evolution statement read: “Although Playtech has finally been identified after years of trying to keep its involvement in this smear campaign a secret, Black Cube continues to evade the court’s discovery orders by withholding relevant information.
“We will continue to hold Black Cube, Playtech and all the other players in this defamatory scheme responsible for their misconduct.
“We are confident in our legal position and look forward to finally holding Playtech and its accomplices to account for the significant harm they have caused.”
EGR has contacted Playtech for comment.
The post Evolution claims Playtech was Black Cube client behind “defamatory report” first appeared on EGR Intel.
Supplier alleges rival paid Israeli intelligence firm more than £1.8m to produce 2021 “smear campaign” that wiped billions off Evolution’s market cap
The post Evolution claims Playtech was Black Cube client behind “defamatory report” first appeared on EGR Intel.