Swedish online gaming giant Evolution AB is once again at the centre of a storm. Confidential recordings suggest that its games reached banned markets such as Iran, Syria and Sudan, despite international sanctions. The company denies any responsibility, but the controversy has already led to a sharp fall in its share price and raised questions about its control mechanisms.
Embarrassing revelations from leaked audio
Confidential recordings collected between 2021 and 2024 by the private investigation firm Black Cube have just reappeared in a case filed in a New Jersey court. The tapes suggest that some of the company’s executives were aware of their games’ access to strictly prohibited markets such as Iran, Syria, Sudan and China.
In one of these extracts, a former US sales director confides that he was shocked to discover that Evolution games were being sold in jurisdictions subject to international sanctions.
Another executive allegedly referred to an Excel spreadsheet listing revenues linked to Sudan and claimed that the Assad family, in power in Syria, had interacted with the company’s products.
The company’s firm defence
In the face of these accusations, Evolution categorically denies any wrongdoing. The company insists on one point: its games are not intended for distribution in areas under sanctions. According to the company, the accesses identified are the result of misuse by third-party operators or unauthorised intermediaries.
The company adds that its model is based on strict compliance, and that any misuse is beyond its direct control.
The impact on the markets was not long in coming. When the new accusations were announced, Evolution’s share price fell by almost 10% on the Stockholm Stock Exchange. This brutal reaction illustrates the fragility of the reputation of online gambling players in a sector where the confidence of regulators is crucial.
A tense legal context
This affair originated with an anonymous complaint, followed by an investigation by the New Jersey authorities. While local regulators have found no evidence that the company derived any material benefit from the illicit access, the case continues to haunt Evolution, particularly as it interferes with its acquisition plans and licensing discussions in several strategic jurisdictions.
These leaks have come to light in the context of a specific procedure: a defamation lawsuit that Evolution has brought against a law firm. The company believes that the accusations are damaging its image and its relations with regulators.
However, the emergence of the Black Cube recordings has given a new dimension to this case, as they seem to show that certain executives were aware of these distribution problems. It remains to be seen whether this awareness has been translated into concrete measures or whether it has been ignored.
What are the implications for the future?
Although the New Jersey investigation was closed at the beginning of 2024, the media coverage of the leaks is keeping the controversy alive. In a highly competitive sector, where international expansion depends on obtaining licences quickly, this type of suspicion can considerably slow down growth ambitions.
What’s more, the European and American supervisory authorities are now keeping a close eye on the matter. The slightest evidence of negligence could be enough to complicate Evolution’s next steps on the world market.
Beyond the specific case of Evolution, this scandal is a reminder that digital borders must not be used as a pretext for circumventing strict regulations. International economic sanctions have become a minefield for technology companies.