Evolution has avoided consequences over allegations of operating in illegal markets.
On Tuesday, the New Jersey Division of Gaming Enforcement (DGE) closed its investigation of Evolution and will take no further action against the live dealer games company. The probe by the NJDGE, which began in November 2021, stemmed from allegations that Evolution offered its services in illegal gaming markets, including Iran, Syria and Hong Kong. As a result of the probe, Evolution lost roughly $3 billion in market value in 2021 immediately following the news after reaching a $33 billion valuation.
The DGE, which was informed of Evolution’s alleged misconduct by an unidentified firm, found no evidence that the company “sanctioned, promoted, permitted, or otherwise materially benefitted from its content offered by operators in any market that the NJ DGE considers a prohibited jurisdiction.”
Evolution also conducted an internal review to ensure it adhered to compliance standards, which led to several enhancements. The upgrades were not related to the DGE’s probe.
More issues for Evolution
Last month, a class action lawsuit was filed against Evolution in the United States District Court for the Eastern District of Pennsylvania. The suit alleges that the Swedish company misled investors with false statements regarding its operations in illegal gaming markets.
The suit names Evolution CEO Martin Carlesund and CFO Jacob Kaplan as defendants.
Despite facing legal woes, Evolution reported favorable revenue growth last fiscal year.
The company generated $514.4 million in operating revenue in Q4 2023, a 16.6% increase year-over-year. Full-year revenue for Evolution reached $1.9 billion in FY2023, up from $1.5 billion for the year prior. It closed the fiscal year with an EBITDA of $1.3 billion, a 25.7% increase year-over-year.
