The share price of popular live dealer casino game supplier Evolution took a hit on Monday morning, dropping by 10% following news of a UK Gambling Commission (UKGC) probe into the company. Evolution is facing allegations that it is providing its games to offshore operators targeting UK customers without the necessary license, prompting the UKGC to review its permit.
In response to the investigation, Evolution released a statement on Friday stating that it is taking immediate action to rectify the situation and is fully cooperating with the authorities. The UK market represents about 3% of Evolution’s total revenue, making it a significant area of concern for the company.
CEO Martin Carlesund assured stakeholders that management is taking decisive steps to prevent access to its products through unlicensed platforms in the UK. He expressed confidence in achieving quick and positive results by working closely with investigators to address the issues at hand.
The potential outcomes of the UKGC review range from no action to a financial penalty, imposition of conditions on the license, suspension, or even total revocation. The company, headquartered in Stockholm, is required to make a public statement under the EU Market Abuse Regulation in response to the investigation.
Overall, Evolution is facing a challenging situation as it navigates the regulatory scrutiny in the UK market. The company’s reputation and financial standing could be at stake depending on the outcome of the investigation and the subsequent actions taken by the UKGC. Investors and industry stakeholders will be closely monitoring the developments in this case as it unfolds.