Sweden’s Evolution launches investigation after illegal gambling charges
STOCKHOLM, 24 Nov (Reuters) – The Swedish gaming company Evolution AB said on Wednesday that it had initiated an internal investigation following accusations from a US law firm that the manufacturer of online slot machines operated in countries such as Iran, in violation of US sanctions.
Bloomberg reported this month that private investigators, arrested by a US-based competitor to Evolution, had also recorded themselves while playing games via Internet addresses in Singapore and Hong Kong, where online betting is prohibited.
A spokesman for Evolution, whose stock price has continued to fall after losing about $ 3 billion in market value when the indictment was reported, denied the allegation and said at the time that it strictly complied with all laws and regulations.
On Wednesday, it reiterated that it used all the tools at its disposal to block gambling in some countries, including those on sanctions lists, and suggested that “manipulation” of its system may have been carried out.
The company has grown rapidly as more people turn to online gambling during the pandemic, where the United States has become a focus as more of its regions legalize sports betting.
The complaint via the law firm was made in a letter to the New Jersey Division of Gaming Enforcement (NJDGE) on behalf of the unnamed private investigators, the Bloomberg report said on November 17. The law firm did not immediately respond to a request for comment on Wednesday.
Evolution said on Wednesday that it had reached the NJDGE as part of its standard procedure in its relations with regulators.
“An internal review has been initiated to ensure a prompt response to all questions from NJDGE,” the company said in a statement, adding that the allegations stemmed from an anonymous third party with “what appears to be an intent to discredit Evolution.”
The company said it had been wrongly claimed that its games were available directly from countries under US sanctions, adding that this was not the case without sophisticated technical manipulation.
“According to statements in the anonymous and dubious report, active manipulation of Evolution’s systems has been deployed to create the impression that games from such countries were possible,” Evolution said.
(Reportage by Helena Soderpalm; Editing by Alison Williams)