Evolution-Playtech dispute: How a corporate ‘smear’ became an investor risk

A report in the shadows

The conflict began in December 2020, when Playtech hired Black Cube to investigate Evolution. According to court filings, the intelligence firm used fake identities, staged phone calls, and hidden recordings to produce a report claiming Evolution’s games were appearing in banned markets such as Iran and Syria.

A US regulator got the report in late 2021. Evolution denied the claims and later said court records showed the report was “objectively wrong,” though the judge did not rule on the accuracy and kept the case open.

In October 2025, Evolution publicly named Playtech as the client behind the investigation — a move that surprised investors. Playtech’s share price plunged within hours, while Evolution’s remained stable.

Short-term shock, long-term questions

The market reaction drew a clear contrast: investors saw Evolution as the target. Analysts noted that regulators had already reviewed the 2021 allegations, reducing fears of major new problems. The headlines caused noise but not lasting damage — at least for now.

Still, the case brought older “grey market” concerns back into focus. One recording from a former Ezugi executive suggested games reached Iraq and Kurdistan. Evolution rejected this, saying the comments were taken out of context. UK regulators continue to examine Evolution’s activity in unlicensed markets, with an update expected soon.

Analysts highlighted several points:

• The share-price drop hit Playtech far harder than Evolution.

• Old grey-market concerns could resurface during new filings.

• Both companies face risks if the dispute grows.

Damage beyond the courtroom

Evolution says the 2021 report wiped billions from its market value. By October 2025, its market cap was around €11.6 billion — much lower than in late 2021. The drop links partly to the report and partly to other challenges. These include cyber attacks in Asia, slower growth in its RNG division, and shifts after recent acquisitions.

Reputation and rivalry

This dispute shows how corporate rivalry has become more costly. Investors are watching ethics, behaviour, and behind-the-scenes tactics more closely. The tension between Evolution and Playtech may influence how the wider sector handles risk — and how far companies will go in future competitive battles.

Evolution says it is taking legal action to defend its reputation and protect shareholders. Playtech says partners raised real concerns that led to its investigation. The case now moves toward 2026. The next filings may show whether this is only a short storm — or a long-term risk for both companies.

The dispute shows how a covert investigation quickly turned into a public risk for both companies, with Playtech taking the bigger hit. The immediate impact was limited, but lingering grey-market concerns leave the long-term outlook uncertain.