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Playtech issued a defiant response today following Evolution AB’s disclosure that the company commissioned the controversial Black Cube investigation, stating it “stands by the decision” and rejecting allegations of a smear campaign as “wholly untrue.”
The statement came as Playtech shares experienced a dramatic collapse in morning trading, losing approximately 34% of their value. The stock bottomed at £2.22 (€2.66) per share before recovering slightly to £2.56 (€3.07) at the time of publication, marking the lowest levels since early 2020.
Playtech’s Defense
In its official statement, Playtech characterized the investigation as a legitimate inquiry into serious regulatory concerns rather than a defamation campaign.
“The suggestion that its subsidiary, Playtech Software Limited (PTS), engaged in a smear campaign is wholly untrue and is designed to distract from serious questions about Evolution’s business practices,” the company stated.
Playtech maintained that PTS commissioned “an independent business intelligence firm to investigate credible and repeated concerns raised by operators, suppliers and regulators about Evolution’s activities in prohibited and sanctioned markets, and its supply to unlicensed operators in regulated markets.”
The company asserted that “the report published, as a result of the investigation, clearly evidences that Evolution’s business practices undermine lawful and compliant gambling operations.” Playtech added that such conduct “damages trust in the credibility of the entire industry and also impacts government tax collection.”
Court Examination Welcome
Playtech stated it welcomes judicial scrutiny of the report’s findings and expressed confidence in the investigation’s credibility.
“Playtech stands by the decision to commission the report. Evolution continues to seek to avoid legitimate scrutiny rather than address longstanding questions about its conduct, including its decision to supply operators in illegal markets and to support unlicensed operators in regulated markets,” the statement read.
The company added: “Playtech welcomes court examination of the report and its findings. Playtech is confident that these proceedings will confirm the credibility and legitimacy of the investigation and the importance of the issues it seeks to address.”
Black Cube Also Defends Report
In a separate statement, Black Cube also defended the allegations included in the report and stated it looks forward to court proceedings.
“Black Cube proudly submitted its findings in coordination with its client. The case now enters its decisive stage – where years of Black Cube’s intelligence work will finally be brought to light and thoroughly examined,” a spokesperson said.
“The extensive body of evidence, including countless hours of video and audio recordings, leaves no room for doubt: Evolution knowingly and deliberately allowed its games to operate in sanctioned jurisdictions and black markets – both before and after the report’s submission.”
Regulatory and Court Findings
Despite Playtech’s assertions, Evolution was cleared of wrongdoing over the report’s allegations by two state gambling regulators, including New Jersey’s Division of Gaming Enforcement.
The New Jersey DGE stated it found “no evidence … showing that Evolution took illegal bets from New Jersey, another state, or any other prohibited jurisdiction,” and “no evidence of inappropriate payments to Evolution by its clients or that Evolution provided devices for customers to illegally use their content.”
Courts have ruled the report was inaccurate. The New Jersey Superior Court concluded in February 2025 that “the report is not truthful” and found it to be “objectively baseless,” stating that “no reasonable litigant could expect success on the merits.”
Market and Industry Reaction
The stock crash reflects severe investor concern over Playtech’s legal exposure and reputational damage. Evolution is expected to amend its complaint to include Playtech as a defendant, with litigation projected to extend through 2026. The company claims multi-billion dollar damages from the report’s dissemination.
Industry analyst Regulus Partners commented on the situation: “Given that a high-profile court case will be in the offing, it is perhaps almost impossible for anyone senior at Playtech to do the honourable thing, but that simply makes the smell linger for longer, in our view.”
The revelation confirms what many in the industry suspected but few could prove: that a major competitor had commissioned the intelligence operation. Evolution CEO Martin Carlesund stated: “The situation takes away a large piece from my belief in fair play, humanity in general and good ethics and morals.”
Discovery proceedings revealed that high-level Playtech executives, including CEO Mor Weizer, communicated with Black Cube about the investigation and report. Playtech paid Black Cube over £1.8 million (€2.16 million) to produce the report, which was submitted to regulators through law firm Calcagni & Kanefsky LLP.
Source: Playtech
