BGC welcomes deactivation of betting ads on Facebook – News from the European gaming industry
Swedish games company Evolution AB lost around $ 3 billion in market value on Wednesday after a US law firm accused it of operating in countries like Iran in violation of US sanctions.
The maker of online slots and roulette games has grown rapidly as more people turned to online gambling during the pandemic, with the United States becoming a target as more and more people turned to online gambling during the pandemic. more of its regions legalize sports betting.
The complaint was filed in a letter last week to the New Jersey Division of Gaming Enforcement on behalf of anonymous private investigators, Bloomberg reported.
Calcagni & Kanefsky LLP law firm did not respond to requests for comment after hours.
The Bloomberg report says investigators, retained by a US-based competitor of Evolution, registered themselves playing games through internet addresses in Singapore and Hong Kong, where online betting is prohibited.
A spokesperson for Evolution denied the charge, saying it was in strict compliance with all applicable laws and regulations.
“We are using all the tools at our disposal to block gambling from certain countries, including all countries on the sanctions lists mentioned in the article,” he said.
Evolution does not own or control any of the operators it works with and has no direct relationship with the underlying player or involvement in the management of players’ money, he added.
Shares of the company were down 9% in morning trading, after jumping 62% this year to a valuation of $ 33 billion.
As Evolution withholds its games from countries on sanctions lists, the complaint raises questions and could attract increased attention from regulators, which is not positive, Pareto Securities analyst Marlon Värnik said.