This disclosure marks a crucial milestone in the company’s long-running dispute relating to the 2021 report, as the revelation might shake the whole sector.
A significant judicial victory has moved Evolution AB one step closer to revealing the identity of the mysterious entity behind a 2021 anonymous report that prompted a big sell-off, wiping billions off the company’s market worth.
A New Jersey Superior Court judge determined that the report’s writers must be identified, a critical victory in Evolution’s continued quest for justice.
The report could’ve been a targeted attack
The initial report, which accused Evolution of operating in restricted markets in violation of local regulations, was sent to the New Jersey Division of Gaming Enforcement and the Pennsylvania Gaming Control Board.
Although the two regulators found no evidence to back up the reported findings, the allegation led Evolution’s share price to collapse 36%, resulting in a $10 billion market value loss.
Since the report’s release, the reasons for its publication have been a persistent focus of speculation. Bloomberg sources have speculated that a rival gaming company could be to blame, attempting to harm Evolution’s brand and gain a competitive edge.
The company has long maintained that the charges made in the report were not only false but also purposefully contrived to hurt its business.
Evolution has accused the unnamed report author of utilizing misleading tactics, including coercing false claims from corporate employees. With the court now mandating the disclosure of those responsible for the study, the casino sector waits in anticipation.
If the report author is indeed another high-profile gambling business person, the news will undoubtedly send shockwaves through the industry.
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“Lacks Veracity”
Up to this point, the unnamed entity has been shielded by attorney-client privilege while the court attempted to strike a balance between Calcagni & Kanefsky’s commitment to its client and the plaintiff’s entitlement to obtain the facts required to pursue civil action.
In April 2024, Judge John C. Porto concluded that further work was needed to ascertain whether the allegations in the report were true before Evolution could determine who it was suing.
On Friday, Porto stated that he was satisfied that the report “lacks veracity,” and that Evolution was “entitled to all relevant discovery necessary.”
“The identity of the client is clearly necessary to enable the plaintiff to fully address its legal claims,” the judge found in an order viewed by Next.io.
This information must be provided with the court by March 7, and it must contain the name of the investigative firm that created the report as well as the entity that commissioned it.
Bet365 dossier also exists
In November 2021, the same New York public relations firm approached two distinct Casino.org reporters. In addition to the Evolution paper, the firm had in its possession a report that attempted to discredit Bet365 and its suspected operations in China, which Casino.org reviewed.
In a phone call, the firm’s owner informed one reporter that the documents were commissioned by a US-based gaming company with the goal of “leveling the playing field” in the US online casino sector. He disputed this to the second reporter many weeks later.
When the Evolution case was public, it looked that the effort to destroy Bet365 had been abandoned.
Evolution Has Regained Market Momentum
Throughout the legal procedures, the as-yet unidentified report commissioner has been represented by the white-collar litigation company Calcagni & Kanefsky (C&K), which has successfully kept its identity hidden thus far.
However, the recent court order requiring the disclosure of the report’s authors could constitute a watershed moment in the tense and protracted legal battle.
Despite the significant financial harm inflicted by the study, Evolution has staged an amazing recovery. The company’s financials for Q4 2024 showed strong revenue and earnings growth, demonstrating its tenacity in the face of adversity.
Operating revenues rose 31.5% to €625.3 million ($652.3 million), while net revenue increased 12.3% to €533.8 million ($556.68 million).
It is unclear when C&K will divulge the report’s author, as they may seek to challenge this latest verdict. Evolution had previously condemned C&K’s court tactics, accusing them of prolonging the legal process and blocking key witnesses from taking depositions.
While Evolution’s fight to clear its name is far from done, this case might have far-reaching consequences for corporate accountability and ethical business practices.
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