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Gambling technology stock Playtech is being sued by its rival, Evolution AB.
It has been a wild week for gambling technology company Playtech, which saw its stock price plummet some 36% after news broke that it was investigating a rival.
On October 21, Evolution AB, a competitor of Playtech, issued a press release saying Playtech hired business intelligence firm Black Cube to investigate Evolution in 2021. The resulting report from the investigation said Evolution was a supplier to online casinos operating in banned or black markets, as our sister publication, Casino Beats, reported this week.
“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 and paying them over 1.8 million GBP to fabricate a report they knew would have extremely harmful repercussions,” Evolution officials said.
Evolution added that Playtech had been trying to keep its involvement in this “smear campaign” a secret. Playtech acknowledged that it hired Black Cube, in a statement.
“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,” the Playtech statement said. “The investigation was undertaken lawfully to better understand and verify concerns of significant regulatory and commercial importance.”
But Playtech said claims that this was a smear campaign are “wholly untrue and is designed to distract from serious questions about Evolution’s business practices.”
Playtech Named in Lawsuit
After the 2021 report came out, Evolution filed a lawsuit for defamation and other charges, naming the attorneys that filed the report, along with the then anonymous parties behind it.
Then, in 2024, the subsequent investigation by New Jersey and Pennsylvania regulators into the claims in the report was closed as regulators found no evidence that Evolution acted illegally. The New Jersey judge also ordered the attorneys to disclose the names of the anonymous groups behind the report. Black Cube was named in September, and now Playtech’s involvement has come out.
In the statement Tuesday, Evolution amended its lawsuit to include Playtech as a defendant. The case is expected to extend through 2026.
Playtech “stands by” its decision to commission the report and “welcomes court examination of the report and its findings.”
“Playtech is confident that these proceedings will confirm the credibility and legitimacy of the investigation and the importance of the issues it seeks to address,” officials said in a statement.
What’s Next?
Playtech stock, which trades on the London Stock Exchange, took a hit from this dispute, falling some 36% on October 21 to $215 per share. However, it has since bounced back, trading on October 24 at around $283 per share, as investors likely bought on the dip. But it is still down about 17% this week.
Evolution stock, which trades on the Nasdaq Stockholm Exchange, rose about 3% after the news came out. However, the stock price has since dropped after Evolution reported third quarter earnings on Thursday, October 23, that were down year-over-year and missed analysts’ estimates. Evolution stock is down about 8% this week.
Playtech stock is down about 60% year-to-date while Evolution stock has dropped 21% YTD. Playtech trades at a much higher valuation, with a P/E of 36, while Evolution is far cheaper trading at 11 times earnings. But Evolution is coming off a disappointing third quarter where it saw revenue and earnings drop year-over-year.
Both of these companies have had their struggles and this lawsuit, which is likely to drag on throughout 2026, will likely create even more uncertainty for investors. In addition to litigation risk, analysts say it could potentially create reputational and operational risk, depending on how the court proceedings play out. Investors should tune into Playtech’s upcoming earnings release or await more news on the matter for better visibility.