Swedish gambling company Evolution AB lost about $ 3 billion in market value after a US law firm accused it of operating in countries such as Iran in violation of US sanctions.
The maker of online slot games and roulette, has grown rapidly as more and more people turned to online gambling during the pandemic, with the US in focus as more and more US regions legalize sports betting. .
The complaint was lodged in a letter to the New Jersey Department of Justice last week on behalf of anonymous private investigators, Bloomberg reported.
The report said the researchers recorded themselves playing games via online addresses from Singapore and Hong Kong, where online betting is banned.
A spokesman for Evolution said: “We are using all available means to block the game from specific countries, including all countries on sanctions lists.”
The company’s share is falling 9%.
While Evolution is suspending its games from countries on the sanctions list, the complaint raises questions and could draw more attention from the authorities, which is not a positive thing, analysts say.
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Source From: Capital
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