BREAKING NEWS: Playtech Plc shares crashed by 25 percent today–and may fall further–after Evolution AB alleged that Playtech used a private intelligence firm with Israeli Mossad secret service connections to investigate and write a defamatory report slamming Evolution’s business practices.
Gambling software rivals Evolution alleged that Playtech Software Limited, a subsidiary of iGaming software providers Playtech Plc, commissioned Black Cube in 2020 to probe its commercial activities, producing a defamatory report in 2021, which contained “false claims about its business practices”.
FTSE 250 Playtech’s shares plunged 25.15 percent, from 255.16 GBX, on the London Stock Exchange today after the revelation during an ongoing litigation in the Superior Court of New Jersey in the USA.
The damning report by Black Cube was submitted to New Jersey and Pennsylvania gaming regulators in late 2021 by U.S. law firm Calcagni & Kanefsky LLP, and was later cited in a Bloomberg article that same month, which triggered legal proceedings for defamation.
Israeli Intelligence
Black Cube is a private intelligence agency based in London, Tel Aviv and Madrid.
The company was founded in 2010 by former Israeli intelligence officers Dan Zorella and Avi Yanus and employs former members of Israeli intelligence units.
In the past, it has supported Israel Defense Forces activities.
Swedish-origin Evolution–founded in 2006 by Jens von Bahr and Fredrik Österberg–filed suit against Calcagni & Kanefsky LLP and unnamed defendants in December 2021, alleging defamation, fraud, and tortious interference.
Legal proceedings, currently being held in the gambling redoubt of New Jersey, have since revealed that Black Cube and Playtech were behind the report.
Both Black Cube and Isle-of-Man-headquartered Playtech, founded in 1999 and currently helmed by CEO Mor Weizer, have been accused of concealing their roles during the proceedings.
Defamation
In February 2024, New Jersey and Pennsylvania regulators closed their inquiries into Evolution without taking any enforcement action.
The New Jersey Department of Gaming Enforcement (NJDGE) said “it found no evidence of illegal betting activity or regulatory breaches”.
But last month (September), the New Jersey Superior Court described Black Cube’s report as “objectively baseless” – and it ordered the firm to reveal its client, which subsequent filings have shown to be Playtech.
Evolution has stated that it will now amend its complaint to include Playtech as a named defendant.
The lawsuit, ongoing since 2021, is expected to continue through 2026.
Playtech has not yet issued a public statement in response to the allegations.
Black Cube Statement
But Black Cube told iGamingFuture:
“We [Black Cube] proudly submitted its findings in coordination with its client.
“The case now enters its decisive stage, where years of Black Cube’s intelligence work will finally be brought to light and thoroughly examined.
“The extensive body of evidence, including countless hours of video and audio recordings, leaves no room for doubt: Evolution knowingly and deliberately allowed its games to operate in sanctioned jurisdictions and black markets – both before and after the report’s submission.
“By doing so, Evolution misled the public, the Court, and regulatory authorities.
“Now, the truth will prevail.”
Evolution Statement
For its part, Evolution has issued the following statement regarding this revelation and Playtech’s actions:
“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 (US$1.34m) to fabricate a report they knew would have extremely harmful repercussions.
“The report, which was furnished to regulators by a law firm representing Black Cube, Calcagni & Kanefsky LLP, and purposely leaked to the media, was determined by two state regulators in the U.S. to be lacking in evidentiary support.
“Later, the New Jersey Superior Court also determined that the defamatory report was untruthful and lacked veracity.
“Notwithstanding those findings, dissemination of the report has resulted in multi-billion dollar damage to our company.
“Black Cube has a well-documented history of using deceitful methods to sway public opinion by launching smear campaigns on behalf of its clients.
“As part of its so-called investigation, Black Cube used highly unethical tactics, including initiating meetings with current and former Evolution employees and board members under false pretenses and secretly recording those interactions; using disguises and falsified identities; and cherry picking edited recordings to fabricate evidence to achieve its desired, false narrative.
“It is notable that the subjects of Black Cube’s report disavowed the allegations and said the report entirely misrepresented their comments.
Illegal Conduct
“We sued the law firm and its then-anonymous co-conspirators for defamation, trade libel, and other illegal conduct in 2021.
“After years of litigation, the New Jersey Superior Court judge presiding over the case found Calcagni & Kanefsky LLP, its client, and the report’s ultimate sponsor “prepared and disseminated false allegations about [Evolution’s] business practices that were designed to harm, and did harm, [Evolution’s] business,” and ordered Defendants to reveal the identity of the parties responsible for the report.
“Although Playtech has finally been identified after years of trying to keep its involvement in this smear campaign a secret, Black Cube continues to evade the Court’s discovery orders by withholding relevant information.
“We will continue to hold Black Cube, Playtech, and all the other players in this defamatory scheme responsible for their misconduct.
“We are confident in our legal position and look forward to finally holding Playtech and its accomplices to account for the significant harm they have caused,” the Evolution statement concluded.
This is a breaking news story. Updates will follow.
Watch this space!
