Shares in Evolution AB, the Swedish online gaming giant, tumbled after a competitor accused the company of doing business in jurisdictions where iGaming is illegal.
Evolution launched its own internal investigation of what led an unnamed U.S. competitor to send a letter to the New Jersey Division of Gaming Enforcement claiming Evolution allows its live-dealer games to be played in countries where online betting is illegal. The letter, sent by attorney Ralph Marra, said the claim was based on research from private investigators hired by the competitor, according to a Bloomberg News report.
The company also reached out to the DGE last week, noting that the company only does business where iGaming is legal, and informing regulators of the internal review.
In an investor call, Evolution CEO Martin Carlesund said Evolution is proactively working to answer any questions posed by the DGE as it seeks to bring its live-dealer games to New Jersey. Carlesund also affirmed that Evolution only sells its games to licensed iGaming operators.
Carlesund told Bloomberg he believes those behind the letter used an internet address from a legal iGaming jurisdiction to enter the Evolution gaming lobby and make it seem like the company was doing business in banned markets.
Meanwhile, Evolution’s stock price, which had risen 73 percent this year prior to last week, fell by 31 percent after the news broke, reducing the company’s market value by more than $11 billion.
