Just when everything seemed to be turning for the better, a big rock fell on Evolution, drowning the stock market’s hopes for the company. The stock fell by double digits on the news.

To make a long story very short, Evolution is accused of  knowingly delivering casino games to countries where gambling is prohibited, or is under US sanctions.

Apparently, current and former Evolution executives were secretly filmed talking about how the company is getting into countries like Iran, Sudan and China. The recordings were allegedly made by the same short selling organization that was on the move in 2021 when the stock was lowered.

What do Evolution themselves say about this? Well, unsurprisingly they deny it and say that Evolution has no interest in getting the games to these markets. Furthermore, they state that advanced manipulations are required to access the games in these countries.

The operators (i.e. those who buy Evolution’s games) are also responsible for following the laws.

Sometimes when news like this comes out, the market tends to overreact and believe the worst. It’s not the first time.

In 2021, there were similar allegations but this was then dropped as there was not enough evidence to convict Evolution.

I do not own Evolution shares today and did not enter into it. Do your own DD, before taking any position…