New Jersey regulator rules Evolution has not operated in prohibited jurisdictions
Decision from the Division of Gaming Enforcement brings an end to a 27-month-long investigation following allegations of supplier operating in US-sanctioned markets
The New Jersey Division of Gaming Enforcement (NJDGE) has confirmed it will take no further action against Evolution following the conclusion of a more than two-year investigation into alleged illegal operations.
In a brief update provided this morning, 20 February, Evolution said the state regulator’s probe into allegations of misconduct had concluded with no evidence to suggest any wrongdoing on the supplier’s behalf.
In November 2021, the NJDGE received a report from Ralph Marra of law firm Calcagni & Kanefsky LLP on behalf of an unnamed party, reported to be a group of private investigators, that alleged the live casino giant was operating in illegal markets and countries subject to US sanctions.
The report claimed that the investigators were able to access Evolution games from Iran, Syria and Sudan, all of which were subject to US sanctions at the time of the report being filed.
The investigators also claimed Evolution content could be accessed in Singapore and Hong Kong, and that the company used unlicensed third parties to offer its content in Europe.
However, those allegations have been dismissed by the New Jersey regulator following an “investigation into the allegations to determine their validity”.
The NJDGE said it found “no evidence that Evolution sanctioned, promoted, permitted, or otherwise materially benefitted from its content offered by operators in any market that the NJDGE considers a prohibited jurisdiction”.
At the time same, the NJDGE was conducting its own investigation, Stockholm-listed Evolution also undertook an internal review.
The supplier said that following that internal investigation, it had ruled that the group’s due diligence and compliance processes were sufficient, but that it took the opportunity to further enhance those processes.
Evolution added that the NJDGE had supported the further enhancements made by the supplier.
The group stressed that the enhancements were not related to “any jurisdictional violations”.
Evolution’s share price jumped 3% in early morning trading following the disclosure of the information.
The supplier’s stock is up 1.4% over the past 12 months after recovering from a slump in the final quarter of 2023, with the group boasting a market cap today of SEK288.3bn (£22bn).