Evolution Gaming Says New Jersey iGaming Regulatory Complaint ‘Falsified’

Time Stamp: February 10, 2022 1:01 PM

Evolution AB provided an update this week on the ongoing probe into its alleged regulatory shortcomings.

Evolution Gaming complaint Martin Carlesund iGaming
Martin Carlesund, CEO of Evolution AB and Evolution Gaming in the United States, seen above, is rejecting claims that the company has violated regulatory conditions. Carlesund said this week that a complaint levied against the iGaming giant filed in New Jersey is meritless. (Image: Nasdaq Stockholm)

Evolution Gaming, the interactive gaming firm’s US subsidiary, was the subject of a complaint filed in November with the New Jersey Division of Gaming Enforcement (DGE). Evolution provides licensed iGaming firms like FanDuel an array of online gaming services. But its top revenue-generating division is its live dealer offerings.

An anonymous party claims that its operatives were able to access Evolution-operated live dealer casino games in several countries where online gambling is not permitted. The complaint also accused Evolution of doing business in countries that are currently facing US sanctions, including Syria, Sudan, and Iraq.

Evolution Gaming denied the assertions during its full-year 2021 investors call this week.

Clarification Provided

New Jersey’s DGE has stayed mum on the complaint, as the agency probes the matter. But Evolution AB CEO Martin Carlesund provided some insight with the firm’s financial filing this week.

Towards the end of the fourth quarter, a dubious, anonymous, and falsified report with the clear intention to harm Evolution was published,” Carlesund said. “We have over 15 years’ experience of operating in regulated environments, and we are comfortable and confident in our ways of working and our business model.”

Carlesund explained that it is the licensee that is responsible for controlling “who plays the games” and monitoring the funds being gambled. The Evolution boss added that the probe has not discovered any serious regulatory infraction, and the complaint has had no impact on revenue.

“With the ambition to be even better, we will continue to work on all processes in relation to the due diligence of our customers and licensing and regulatory framework,” Carlesund said of the matter.

Evolution allows online gamblers to interact with a live table dealer over the internet. Evolution runs live studios in a variety of locations, including in New Jersey, Pennsylvania, and Michigan. The company’s international studios facilitate live dealer offerings online for numerous iGaming brands, including Svenska Spel, LeoVegas, Betfair, William Hill, and 888.

Record Quarter

The Evolution AB investor call focused much more on the organization’s strong 2021 performance. The company eclipsed the €1 billion (US$1.15 billion) mark last year, thanks to record fourth quarter revenue of $344.5 million.

Operating revenues increased 90 percent in 2021, and earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 212 percent from 2020. As a result, the Evolution Board of Directors approved a $1.63 per share dividend.

Evolution detailed that it is currently operating more than 1,000 live table games for the first time in company history. Traded on the Nasdaq Nordic, Evolution shares gained almost two percent in Thursday trading.

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