Evolution Accused of Illegal Gambling, Loses $3 Billion in Value

Today a law firm accused online gaming giant Evolution of illegal gambling, allowing wagers to be taken in spots like Iran, where sanctions have been placed. If true, such a move would open Evolution up to legal action, as the United States prohibits financial dealings with Iran.

The law firm of Calcagni & Kanefsky LLP made the allegations through an anonymous client, as they submitted a complaint to the New Jersey Division of Gaming Enforcement. According to the complaint, an investigation was commenced, wherein players were able to partake in games in Hong Kong and Singapore, where online betting is prohibited.

The announcement of the complaint sent Evolution stock tumbling, as the company's valuation took a $3 billion hit.

Later in the day Evolution issued a statement, which read in part: "It has been falsely alleged that Evolution games are accessible directly from countries under US sanctions. This is not the case without sophisticated technical manipulation. According to allegations made in the anonymous and dubious report, active manipulation of Evolution's systems has been deployed to create the impression that play from such countries was possible. This use of Evolution's content, through an operator that was not an Evolution customer but connected to an aggregator which Evolution has as a customer, was seemingly conducted by first establishing a VPN-tunnel from an IP-address in a blocked country to obtain an IP address in an accepted country.

"From this IP-address a connection through the operator to Evolution's lobby was made, clearing all geographical IP checks, and a session was established with the browser. Thereafter, the VPN from the accepted IP address was terminated, while the content session remained active in the browser. The first IP address from the blocked country remains active. Prior to those steps, multiple attempts to connect directly from the IP address in the blocked country were rejected. This is a deliberate course of action to circumvent a broadly accepted and well-established process to check users' geographical location, with the purpose of discrediting Evolution."

We're following this story and will be updating readers as we learn more.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.

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