Who’s behind Evolution’s €2 billion wipeout? Court orders identity disclosure
Swedish online gaming giant Evolution AB is on the brink of unveiling the identity of the anonymous entity behind a 2021 report that alleged the company’s involvement in illegal gaming activities. The report caused a massive sell-off of Evolution’s shares, wiping billions from its market value.
A New Jersey Superior Court judge ruled on 28 February 2025 that the authors of the report must be revealed.
Allegations and market turmoil
In November 2021, an anonymous surfaced accusing Evolution of operating in countries under U.S. sanctions, including Iran, Sudan, and Syria. The report, submitted by the law firm Calcagni & Kanefsky LLP (C&K) to the New Jersey Division of Gaming Enforcement (DGE) and the Pennsylvania Gaming Control Board, alleged that Evolution’s games were accessible in these restricted markets, potentially violating U.S. regulations.
The immediate fallout was severe. Evolution’s stock plummeted by approximately 11 percent, erasing over €2 billion from its market capitalisation. The report also claimed that Evolution executives had made incriminating statements during undercover investigations, which were secretly recorded.
Evolution’s response and legal countermeasures
Evolution vehemently denied the accusations, asserting that the report was “dubious, anonymous and falsified with the clear intention to harm Evolution.” The company said it was committed to operating strictly within legal frameworks and serving licensed customers.
Evolution initiated legal proceedings in the Superior Court of New Jersey, aiming to uncover the identities of those behind the defamatory report. The company accused the anonymous authors of employing deceptive tactics, including coercing false statements from current and former Evolution employees.
Regulatory investigations and findings
In parallel with Evolution’s legal actions, regulatory bodies launched investigations into the allegations. The New Jersey DGE conducted a thorough review and, in 2024, concluded that there was no evidence to support claims that Evolution operated in prohibited jurisdictions. This finding undermined the credibility of the 2021 report and bolstered Evolution’s stance.
Legal battles over anonymity
Throughout the legal saga, C&K staunchly defended the anonymity of its client, arguing that revealing their identity would breach legal protections. In April 2024, the New Jersey Superior Court initially denied Evolution’s motion to compel disclosure, citing insufficient grounds to override the client’s right to confidentiality.
However, Evolution persisted, presenting new evidence and arguments to challenge the legitimacy of the anonymous claims. The company’s legal team contended that the false allegations had caused billions in damages and that the perpetrators should not evade accountability under the cloak of anonymity.
Court orders disclosure
On 28 February 2025, a New Jersey Superior Court judge ruled in favour of Evolution, ordering C&K to disclose the identities of both the investigative firm that compiled the report and the entity that commissioned it. The court stressed that “the report lacks veracity and the plaintiff is entitled to all relevant discovery necessary.”
Speculations and industry implications
The impending revelation has fuelled speculation about the potential identity of the anonymous accuser. Industry insiders have suggested that a rival gambling company might be responsible, aiming to tarnish Evolution’s reputation for competitive advantage. If confirmed, such a revelation could send shockwaves through the industry, prompting a re-evaluation of competitive practices and regulatory oversight.
Evolution’s financial performance
Despite the challenges posed by the 2021 allegations, Evolution has staged a remarkable comeback. The company’s Q4 2024 financial report showcased robust growth, with operating revenues surging 31.5 percent to €625.3 million and net revenue increasing 12.3 percent to €533.8 million.
However, the share price of Evolution AB, which was trading near its all-time high in mid-November 2021, has fallen close to 20 percent to date. The Nasdaq Stockholm-listed entity’s shares were trading 1.5 percent lower at 817.2 SEK on 4 March 2025 at the time of publication.
Timeline of key events
- November 12, 2021: An anonymous report accusing Evolution of operating in restricted markets is submitted to the NJDGE and Pennsylvania Gaming Control Board.
- November 16, 2021: Bloomberg publishes details of the report, causing Evolution’s share price to drop by 36 percent.
2022-2023: Evolution files multiple motions to uncover the identities of the report’s authors, represented by Calcagni & Kanefsky.
- 2024: The NJDGE and Pennsylvania Gaming Control Board close their investigations, finding no evidence to support the report’s allegations.
- February 28, 2025: A New Jersey Superior Court judge orders C&K to disclose the identities of the report’s authors within seven days.
- March 1, 2025: Evolution awaits the disclosure, which could finally reveal the mystery behind one of the most damaging attacks in the gambling industry.
