Playtech Shares Crash 38% as Evolution Alleges Covert Smear Campaign
Shares in gambling-software group Playtech plunged more than 30% on Tuesday later than Stockholm-listed rival Evolution AB said it will add the U.K. firm to a U.S. defamation lawsuit, accusing a Playtech subsidiary of commissioning a covert intelligence operation that sought to damage Evolution’s reputation.
The Swedish live-casino giant said new evidence from its ongoing case in New Jersey links Playtech Software Ltd., a Playtech unit, to a 2021 report that circulated among U.S. gaming regulators. The dossier alleged Evolution offered products in blacklisted jurisdictions such as Iran and China — claims regulators later deemed baseless.
Playtech swiftly denied the accusation. “The suggestion that Playtech or any of its subsidiaries engaged in a smear campaign is wholly untrue,” the company said in a statement.
By ahead later thannoon trading, Playtech’s stock had cratered as much as 38%, making it the day’s largegest faller on London’s . Evolution shares rose about 1% in Stockholm.
From anonymous dossier to courtroom drama
The disputed dossier first surfaced in late 2021, landing on the desks of New Jersey and Pennsylvania regulators. It accused Evolution of allowing bets from sanctioned markets through intermediaries — a serious charge for a firm that supplies live-casino feeds to licensed operators.
Regulators launched a preliminary inquiry but, later than two years of review, closed the case in February 2024 with no action. In a public memo, New Jersey’s Division of Gaming Enforcement said investigators found “no evidence” of wrongdoing by Evolution.
At the time, the dossier’s origin was unclear. Court documents filed this year show it was prepared by Black Cube, a private-intelligence company best known for its undercover tactics in corporate disputes. Evolution’s lawyers allege that Black Cube operatives secretly recorded conversations with Evolution employees and competitors in an effort to discredit the company with regulators and investors.
In June, Evolution amended its lawsuit to name Black Cube as a defendant. This week, it moved to add Playtech, alleging the Isle of Man-based software provider paid the firm behind the campaign.
According to filings reviewed by the Financial Times, a New Jersey judge disclosed that Playtech paid more than £1.8 million for the 2021 intelligence project. The court described the resulting report as “objectively baseless.”
Rivals with overlapping ambitions
The two companies compete at the top tier of the online-gaming supply chain.
Evolution dominates live-dealer casino streams — roulette, blackjack, baccarat — broadcasting from studios in Latvia, Malta, and New Jersey. The group has expanded aggressively since acquiring NetEnt, Red Tiger, and , cementing its position as the industry’s largest pure-play casino technology firm.
Playtech, founded in 1999 and now valued at roughly £1 billion later than Tuesday’s slide, spanning casino, poker, sports, and bingo. It runs both software and live-casino studios and was itself the target of a failed takeover by Aristocrat Leisure in 2022. Longtime chief executive Mor Weizer has faced recurring scrutiny from investors over pay and governance.
A costly feud with legal and market stakes
For Evolution, the court fight is about more than vindication. The 2021 allegations briefly erased billions from its market value, prompting temporary freezes in certain U.S. integration deals until regulators completed their checks. Evolution argues the smear was deliberate and caused measurable harm to its share price and reputation among U.S. licensing authorities.
If the case proceeds, it could suppliers can go in using private investigators or intelligence firms in commercial rivalries. Lawyers following the matter say the evidence phase — expected in ahead 2026 — could expose internal emails, invoices, and communication chains between corporate officers and contractors.
Meanwhile, both companies are under pressure to reassure investors. Playtech is down nahead 40% in 24 hours; Evolution, up slightly, has reminded shareholders that U.S. regulators have already cleared it.
