Evolution CEO Martin Carlesund has called for “fairness” and “justice” as the embattled supplier continues in its bid to unmask further identities in its defamation litigation battle with Playtech.
The company claimed Playtech subsidiary Playtech Software Limited (PTS) was accountable for commissioning the independent business intelligence firm Black Cube to investigate the provider’s activities in prohibited and sanctioned markets, as well as its supply to unlicensed operators in regulated markets.
When asked what outcome Evolution would like to see from the US litigation process during the company’s third quarter earnings call, Carlesund said: “I look for fairness, justice and I think that it’s horrible to do what has happened to us.
“Someone is hiding between layers of companies, hiding their true identity and writing a number of false statements in a report about us. It’s unfair.
“We are protecting the shareholder value of Evolution, the company as such, defending ourselves for our employees and the first thing that we look for is some kind of justice.”
Black Cube report
Recently, a New Jersey Superior Court order compelled Black Cube to reveal the client who commissioned the group to investigate and write a report on Evolution’s activities.
Evolution alleges that Black Cube’s 2021 report featured “highly inflammatory and knowingly false claims about Evolution and its business practices” that were “intended to substantially harm the company for anti-competitive reasons”.
Within the live dealer company’s statement, claims were made that the intelligence firm used “false personas and disguises” to conduct its investigation, secretly recording conversations and interviews with current or former Evolution employees and board members.
Law firm Calcagni & Kanefsky LLP submitted the report to US state regulators in November 2021, which resulted in Evolution filing a lawsuit against the firm and the then-anonymous parties behind the report in the Superior Court of New Jersey.
Hurts the industry as a whole
This case is ongoing and was amended by Evolution to include Black Cube, which led to the court compelling the business intelligence firm to provide information regarding the report. It will soon be amended again to include Playtech.
Carlesund said during the call: “We have, after four years, finally received information on who was behind the false report. This process will continue in court and I will not make any comments about its future development.
“What I can say is that we believe in fair competition, where innovation and excellent operations count. When a competitor decides not to play by these rules, it hurts not only us but the industry as a whole.”
Severe amount
When asked about how Evolution will assess the damages and how much the case with Playtech would cost, the CEO wouldn’t disclose the cost figure, but he did say the damages amount would be significant.
“When someone behaves in that way, hides for four years doing this type of action, with that type of company, Black Cube, using Juda as a PR company (HeraldPR, a New York-based PR firm founded by Juda Engelmayer), it takes a bit away from my belief in humanity, in fair play and in ethics and morals.
“Exactly how we will assess the damages, that’s a later question, but it’s a severe amount.”
Wholly untrue
Playtech has stated that the suggestion that its subsidiary took part in a smear campaign is “wholly untrue and is designed to distract from serious questions about Evolution’s business practices”, adding that it stands by its decision to commission the report and that it welcomes a court examination.
Playtech said: “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 investigation was undertaken lawfully to better understand and verify concerns of significant regulatory and commercial importance.
“The report published, as a result of the investigation, clearly evidences that Evolution’s business practices undermine lawful and compliant gambling operations. Such conduct damages trust in the credibility of the entire industry and also ultimately impacts government tax collection.
“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.
“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.”
