iGaming Software Developer Evolution Cleared of Corruption Charges in NJ

Article by : Erik Gibbs Feb 22, 2024

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The New Jersey Division of Gaming Enforcement has officially concluded its inquiry into Evolution, an online gaming software developer, finding no substantiated evidence to validate accusations of misconduct related to illicit activities in US-sanctioned markets.

Launched in response to a report from an undisclosed firm in November 2021, the investigation specifically delved into assertions that Evolution’s products were accessible in nations subject to US trade sanctions.

The impact of these allegations was substantial, significantly affecting Evolution’s market capitalization.

In a recent press release, Evolution stated that the NJDGE discovered no evidence supporting allegations that the company sanctioned, promoted, permitted, or materially benefitted from its content being offered by operators in any market considered a prohibited jurisdiction by the NJDGE.

The accusations hinted at the possibility of Evolution’s products being accessible in sanctioned countries, such as Syria, Iran and Sudan, through advanced technical methods, including virtual private networks (VPNs).

Evolution highlighted that gaining access to its products in sanctioned countries would necessitate intentional actions to circumvent established geographical location checks, emphasizing that such efforts were aimed at undermining the company’s credibility.

The statement underscored Evolution’s commitment to collaborating closely with regulators and its operator partners to prevent gameplay from sanctioned nations.

It also stressed the shared responsibility with operators to conduct ‘Know Your Customer’ checks and adhere to relevant regulations and licenses.

Although the findings from the NJDGE provide a measure of resolution for Evolution, the company remains under the spotlight due to an ongoing class-action lawsuit.

This legal action alleges Evolution misled investors regarding its growth trajectory and compliance, adding another layer of scrutiny to the company’s standing.

Initiated by Federman & Sherwood, the legal action spans from February 14, 2019, to October 25, 2023, alleging that Evolution engaged in disseminating deceptive statements concerning its potential for growth and adherence to regulatory standards.

Within the ongoing legal proceedings, Evolution’s CEO, Martin Carlesund, and CFO, Jacob Kaplan, have been identified as defendants, further intensifying the complexities of this legal challenge.

Within the dynamic world of iGaming, innovation is key to steering the industry into the future. Year after year, skilled software providers and developers contribute to the dynamics and ever-evolving gaming landscape, where Evolution stands among the top three in the globe.