Evolution shares fell over 10% before Christmas after the UK Gambling Commission (UKGC) announced a review of the company's license. The review stems from Evolution's admission that their games were accessible to UK players through unlicensed operators.

Evolution confirmed the unauthorized access in a December 20 investor note but stated they had already resolved the issue by making their games unavailable on unlicensed websites targeting UK players.

CEO Martin Carlesund emphasized that Evolution is taking "forceful action" using all available technical tools to ensure their games are only accessible through licensed UK operators. The company maintains its commitment to transparent regulatory relationships.

While the UK represents just 3% of Evolution's revenue, investors worry the review could trigger regulatory actions in other jurisdictions. Jeffries analysts noted this concern, though Pareto analysts believe Evolution's UK license is not at risk.

Separately, Evolution is pursuing a defamation case regarding a 2021 report claiming the company operated in black markets, including US-sanctioned countries like Iraq, Sudan, and Syria. The report, submitted to the New Jersey Division of Gaming Enforcement (DGE) by law firm Calcagni & Kanefsky, led to an investigation that cleared Evolution of wrongdoing in February 2024.

Evolution is currently seeking to identify the report's author through the New Jersey Superior Court. The court ruled in April that further examination of the allegations was needed before revealing the accuser's identity, balancing attorney-client privilege with Evolution's right to pursue civil action. The initial DGE investigation reportedly cost Evolution $3 billion in market value.

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