iGaming industry rocked by corporate espionage scandal

Two iGaming companies with links to Malta have become embroiled in a corporate espionage row, after Playtech was outed in a New Jersey court as having hired an intelligence firm to investigate its competitor, Evolution Gaming, for illegal practices.

Malta’s gaming sector regulator, the Malta Gaming Authority (MGA), said however it does not believe the scandal falls under its regulatory oversight.

Evolution specialises in online casino games, offering video feeds of blackjack and roulette with live dealers. Playtech, which sells technology to many of the world’s leading gaming businesses, competes with Evolution by offering live casino products.

Both companies have licences from the MGA. Evolution hosts support HR, finance and legal functions in Malta, and operates a live-casino production studio. 

Two of Playtech’s subsidiaries - PT Services Malta Limited and Quickspin Malta – are based in the country.

The story dates back to 2021, when a report into Evolution Gaming by controversial Israeli intelligence firm Black Cube -  founded by ex-Mossad agents – was submitted anonymously to regulators in New Jersey and Pennsylvania, USA.

The dossier alleged that, in secret recordings, Evolution executives admitted to operating in “grey” or banned markets, including Iran and China, and possibly in sanctioned jurisdictions.

Evolution then sued the law firm that was used to pass on the documents for defamation, claiming the allegations were false and caused a fall in its share price.

The case proceeded in New Jersey, with Evolution seeking to identify who commissioned the report. But Black Cube – also still not named at this point - resisted naming its client, citing confidentiality.

In April 2024, court filings confirmed that Black Cube authored the dossier sent to US regulators. A New Jersey judge noted the New Jersey Division of Gaming Enforcement (DGE) reviewed the claims and found them “objectively baseless."

In October 2024, after a court order, Black Cube disclosed that Playtech was its client, confirming long-standing speculation.

On Tuesday, Evolution released a statement publicly naming Playtech for the first time, and has added its rival to its defamation case.

“It is deeply disturbing to learn that one of our competitors has gone to such extraordinary lengths to damage our business and reputation by hiring Black Cube,” the company said.

Evolution said that, through court filings, it had learned that Playtech had paid Black Cube £1.8 million (€2 million).

A spokesperson for Evolution told Times of Malta that when it came to preventing traffic from sanctioned markets, the company has a very robust framework in place.

“We are doing everything that is technically possible to prevent access to our content. We have no interest in having any traffic from sanctioned markets,” they said.

In a statement to the London Stock Exchange, Playtech stood by the report, adding that the accusation that it had engaged in a smear campaign against Evolution was wholly untrue and was designed to distract from serious questions about its competitor’s business practices.

“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.”

Following the revelation, Playtech’s shares fell by up to 33 per cent.

MGA reacts 

Meanwhile, the MGA told Times of Malta that while it could not comment on individual cases or private investigations, it was aware of the allegations.

“Based on the information available, the allegations referenced in media reports do not pertain to activity falling under the MGA’s regulatory oversight,” an MGA spokesperson said.

The authority said it expected all licensees to operate with integrity and in full compliance with applicable laws and regulations.

“The Authority’s regulatory framework incorporates due diligence, ongoing monitoring, and collaboration with national and international authorities to uphold these standards.”