The accusations leveled against Evolution were met with firm resistance from the company, which asserted that they originated from an unnamed source with a clear agenda to undermine the company’s reputation. Evolution emphasized its commitment to integrity, highlighting its collaboration with industry regulators and partners to implement systems that prevent access from countries subject to U.S. sanctions, such as Syria, Iran, and Sudan.
In a turn of events that Evolution surely welcomes, the New Jersey Division of Gaming Enforcement (NJDGE) has wrapped up its inquiries without finding grounds to reprimand the company. The regulator has effectively put the case to rest.
Evolution was quick to convey its position in an official release: “The NJDGE 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,” highlighting the regulator’s thoroughness.
Additionally, Evolution didn’t just stand by idly; it proactively carried out an internal review. While it affirmed the robustness of its compliance methods, Evolution took this opportunity to strengthen its processes even further.
These improvements have received the nod from the NJDGE. It’s important to note that the enhancements were not a response to violations but rather a proactive measure to solidify Evolution’s commitment to compliance.
Addressing Access from Forbidden Territories: Evolution’s Stance
When initially confronted with the allegations, Evolution stood its ground. It insisted that access to its services from the banned countries would necessitate “sophisticated technical manipulation.” Discover the latest insights and updates on gaming regulations at Online Casino Guide, your go-to resource for industry news.
According to Evolution, it’s not a straightforward task; these countries could only seemingly reach the company’s offerings through intricate means. This involves using an aggregator’s customer operator that deploys a VPN, creating a false presence in a permitted country.
For someone to actually use Evolution’s services from a blocked nation, they would need to engage in persistent and deliberate efforts to misrepresent their location, which Evolution argues is a calculated move to sidestep established geo-location checks and tarnish its reputation.
Evolution Condemns Underhanded Tactics to Circumvent Safeguards
Evolution maintained that any successful connection from such regions would result from persistent, intentional attempts to bypass the rigorous geo-location processes put in place. The company criticized these actions as a calculated attempt to evade a widely recognized and established verification system.
Evolution highlighted that its partners, who are directly responsible for player interactions, are mandated to hold valid licenses in the jurisdictions where the services are provided. Additionally, Evolution itself must be licensed to supply its products in many of these regions.
Since Evolution is not involved in handling players’ funds directly, it relies on its operator partners to carry out the necessary Know Your Customer (KYC) checks. Following these verifications, the operators can then make informed decisions about which players are allowed to use their services.
Separate Legal Battle Looms Over Evolution
While this particular development is a breath of fresh air for Evolution, there’s still a cloud hanging over the company concerning a different legal matter.
Just last month, a class action lawsuit was initiated, accusing Evolution of misleading investors about its growth projections and its adherence to compliance standards. For more information on developments in the dynamic world of online gaming, click here.
This lawsuit represents individuals and institutions that invested in Evolution’s shares during the period from February 14, 2019, to October 25, 2023. The allegation is that Evolution made false or misleading statements regarding its growth potential, its customers’ compliance, the company’s own adherence to regulations, and the implications of any lapses on its revenue.
The CEO of Evolution, Martin Carlesund, along with CFO Jacob Kaplan, find themselves as defendants in this ongoing suit.