A class action lawsuit has been filed against Evolution by consumer and class action specialists Federman & Sherwood. The suit alleges Evolution deceived investors regarding its growth trajectory and compliance with US law, undermining its revenue and growth. The lawsuit covers the period between 14 February 2019 and 26 October 2023, seeking to recover damages on behalf of investors who purchased Evolution securities.

The Company Faced Rising Pressures

Evolution has faced regulatory challenges, including allegations of breaching US sanctions and operating in countries black-listed by the US. In November 2021, the company was accused of conducting business illegally in several markets, resulting in a substantial decline in its share price. A January 2022 analyst report suggested that a significant portion of Evolution’s revenue could be at risk due to potential regulatory clampdowns.

In April 2022, Australia’s gambling regulator requested ISPs to block unlicensed online gambling sites, five of which were Evolution customers, leading to a decline in the company’s share price. The Swedish Administrative Court upheld a record fine on an Evolution customer, ComeOne Group, resulting in an 11% drop in shares. Reports of industry entities lobbying against the UK’s planned gambling laws overhaul also impacted Evolution’s shares.

Evolution’s financial reports revealed several underlying challenges, showcasing stagnant North American performance and flatlined overall growth, leading to share price declines. October 2023 marked the latest negative development for Evolution as it experienced delays in opening new studios, raising concerns regarding the company’s long-term prospects.

The Plaintiff Alleges Evolution Obscured Information

The Federman & Sherwood complaint alleges violations of Section 10(b) of the Securities Exchange Act and Rules and breaches of Section 20(a) of the Securities Exchange Act. The lawsuit claims that between 24 January 2022 and 26 October 2023, various disclosures revealed the truth about Evolution’s compliance, revenue, and growth, leading to a significant share price drop.

“The Complaint alleges that Defendants… made materially false and/or misleading statements regarding Evolution’s compliance with governing laws…and growth strategies.”

Federman & Sherwood statement

The suit names Martin Carlesund, Evolution CEO, and Jacob Kaplan, chief financial officer defendants. If the company did obfuscate its growing regulatory and compliance issues, it could have significant long-term repercussions. Evolution has not yet responded to the allegations, likely preferring to save its efforts for the impending hearing.

Federman & Sherwood set a deadline of 26 March 2024 for investors wishing to participate in the legal action against Evolution. The class action lawsuit sheds light on Evolution’s challenges in maintaining regulatory compliance. The subsequent impact on its financial performance and shareholder value could draw increased scrutiny on the sector as a whole.

The post Evolution Faces Legal Action over Disclosures and Regulatory Compliance appeared first on Keno Wizard.

Malta’s Financial Intelligence Analysis Unit (FIAU) has slapped a hefty fine of €222,736 ($244,085) on Trannel International Limited, a subsidiary of the Kindred Group, for significant lapses in compliance with regulatory standards. 

FIAU Exposes Trannel’s Risk Analysis Shortcomings with Critical Compliance Deficiencies

The FIAU’s investigation revealed that Trannel had failed to conduct proper risk analyses for a substantial number of clients whose deposits exceeded €2,000, as mandated by law. Critical deficiencies in Trannel’s CRA methodology were identified, with a lack of a system to connect multiple customer accounts, reported Television Malta’s TVM News. Each account was assessed independently, disregarding the broader context of a customer’s overall activity.

In a proactive response to the compliance examination, Trannel rectified the deficiency by implementing an automated risk assessment model tied to account registration. Despite these corrective actions, the FIAU emphasized the gravity of the lapses in Trannel’s compliance measures.

The regulatory body highlighted instances where Trannel’s risk assessment heavily favored transaction risk over other crucial pillars such as customer and geographical risk. Inappropriately rated profiles accounted for 40% of the reviewed player profiles, neglecting factors like deposit amounts, transaction speed, and payment methods.

High-Value Player Profiles Unveil Trannel’s Inadequate Scrutiny of Financial Red Flags

Two specific player profiles drew attention due to Trannel’s failure to scrutinize transactions adequately. In one case, a player deposited €3.5 million ($3.8 million) within 18 months, engaging in non-closed loop transactions with discrepancies in declared income. 

The second case involved deposits exceeding €350,000 ($383,548) in three months, questionable income sources, and third-party e-wallet transactions. Trannel neglected to gather essential information to substantiate these players’ financial activities.

Furthermore, Trannel fell short in fulfilling record-keeping obligations, with 70% of player profiles lacking necessary documentation from open-source intelligence obtained from the internet. 

Malta is not the only jurisdiction where Trannel has been experiencing challenges. In June, Norwegian gambling authorities received legal affirmation as the Borgarting Court of Appeal rejected Trannel International Limited’s appeal against a compulsory fine of NOK 1.2 million ($108,600) per day. 

The legal dispute began in 2019 when Norway’s gambling regulator, Lotteritilsynet, urged Trannel to cease operations in the country, leading to rejected appeals, a suspension, and subsequent fines, with the recent court decision signaling the end of Trannel’s legal battles in Norway. 

Culture and Equality Minister Anette Trettebergstuen noted that the court’s ruling aligns with the Norwegian exclusive rights model, while Atle Hamar, director of Lotteritilsynet, anticipates Trannel’s complete withdrawal from the Norwegian market.

The post Malta’s FIAU Imposes Fine on Trannel International for Compliance Failures appeared first on Keno Wizard.

US Integrity and Odds On Compliance, two of the biggest sports betting and gambling compliance companies, have announced a monumental merger that will bring them under the same banner. The merger will allow the two parties to form the industry’s first global compliance and integrity solution.

US Integrity is a technology-driven sports wagering monitoring company that supplies clients with solutions that protect them from betting-related fraud. Odds On Compliance, on the other hand, excels in providing gambling and betting operators across Europe and the Americas with compliance solutions and consulting.

By joining forces, the two companies will bring together two experienced and talented teams with years of experience in the sector. This will allow the resulting body to better address the compliance needs of the ever-evolving gambling industry.

According to the announcement, the new company will have a wider geographic reach and will continue delivering tailored and innovative solutions that help operators succeed sustainably.

The merger deal is expected to close in October 2023 and is still subject to shareholder and regulatory approvals.

The Two Companies Are Looking Forward to Working Together

Following the merger, Odds On Compliance’s chief executive officer, Eric Frank, will be appointed as President of the newly formed company. Commenting on the agreement, he said that the merger attests to the two companies’ commitment to helping gambling operators navigate the complex regulatory landscape.

This fusion of strengths will enable us to offer a comprehensive suite of compliance and integrity technology products and services.

Eric Frank, CEO, Odds On Compliance

Meanwhile, Matt Holt, US Integrity’s chief executive officer, will re-assume CEO responsibilities at the combined company. He also shared his thoughts on the tie-up, expressing his excitement.

We are thrilled to unite the strengths of U.S. Integrity and Odds On Compliance to create a firm that is poised to redefine the standards of excellence in the sports betting and gambling compliance industry.

Matt Holt, CEO, US Integrity

Earlier this year, US Integrity and Odds On Compliance joined forces to launch ProhiBet, a solution that helps companies prevent professional athletes and sports staff from wagering on sports. The solution hit the market last month and is already gaining significant momentum.

The post US Integrity and Odds On Compliance Unveil Historic Merger appeared first on Keno Wizard.

Regulatory compliance software specialist US Integrity has unveiled a new agreement with Conference USA, an American intercollegiate conference. As agreed, the former party will provide its reliable solutions to the league.

An expert in compliance, US Integrity analyzes data sets to crack down on fraud in sports betting. Thanks to its robust solutions, the company is able to monitor events and identify suspicious patterns. The data is then presented via a fully customized, easy-to-use dashboard that companies and leagues can use to access information in real-time.

In addition to that, US Integrity will also supply Conference USA with a variety of educational materials for student-athletes, coaches, league staff and officials. The league will gain access to the Prohibet system, which is US Integrity’s fully encrypted decentralized cross-monitoring and notification platform. Conference USA, for example, will use Prohibet to make sure that its athletes, coaches and officials do not engage in sports betting.

Prohibet allows leagues to maintain their integrity by ensuring adherence to local regulations. The product is developed in collaboration between US Integrity and Odds On Compliance, a major tech consultancy serving the sports betting and gambling sectors.

As a partner of US Integrity, Conference USA joins an extensive league portfolio, which includes the Southeastern Conference, the Big 12, the Pac-12, the West Coast Conference, The Big West, the Big Sky, MLB, the NBA, UFC and the PGA Tour.

US Integrity Is Excited to Support Conference USA as It Grows

Conference USA’s commissioner Judy MacLeod expressed her thoughts on the partnership with US Integrity, emphasizing its importance to her team. She admitted that navigating the betting ecosystem can be a daunting task, which is why the compliance specialist’s help would be welcome.

With all of the uncertainty in the gambling space in college athletics, USI provides peace of mind that we are doing our part to manage any illegal activity that may compromise the games being played while providing an essential role in educating and protecting our campus administrators, coaches, student-athletes and officials.

Judy MacLeod, commissioner, Conference USA

Matthew Holt, US Integrity’s co-founder and chief executive, also commented on the new alliance, saying that his team is “thrilled to be working with Conference USA.” He said that his company would gladly support the league as it continues to experience rapid growth.

Holt concluded: “The core values of our partnership will provide their student-athletes with educational training services and ProhiBet’s state-of-the-art encrypted data transfer system.”

US Integrity just teamed up with RealResponse to deliver a revolutionary service exclusively designed for intercollegiate athletics.

The post US Integrity to Supply Compliance Solutions to Conference USA appeared first on Keno Wizard.

Odds On Compliance (OOC), a leading gambling tech and regulatory consultancy firm, has formed a partnership with SharpRank, a best-in-class evaluator of sports betting content and advertising.

Under the newly-minted agreement, the two firms will work together to provide their operator clients with streamlined and efficient access to compliance, audit, monitoring and more. OOC’s new gambling compliance database PlaybookAI will integrate SharpRank’s audit reports and ongoing monitoring, increasing its efficiency.

Thanks to SharpRank, OOC’s clients will be able to use real-time and ongoing oversight of regulatory movements.

PlaybookAI is an important new tool that helps gambling companies navigate the complex regulatory landscape. SharpRank’s solutions will be a valuable addition, especially when it comes to sports betting and advertising – the categories the evaluator excels at.

Speaking of Playbook, OOC recently launched the product in Europe.

The current agreement reflects both parties’ desire to offer reliable cutting-edge solutions that address gambling operators’ regulatory needs. The two companies promised to revolutionize the industry through multiple innovations and unmatched new client experiences, while maintaining their unwavering dedication to excellence.

Both OOC and SharpRank are excited to see where this partnership will take them.

OOC and SharpRank Share the Same Core Values

The two have natural synergies thanks to their commitment to a consumer-first approach. As a result, OOC and SharpRank are happy about the opportunity to work together and drive innovation.

Chris Adams, SharpRank’s chief executive officer, said that the two parties’ core values are fundamentally aligned. The next step, according to him, is to leverage this synergy to optimize efficiencies for clients and gambling stakeholders.

Adams added that his team acknowledges the absolute importance of protecting the consumers, which is yet another value Odds On Complies shares.

Our partnership is firmly rooted in the mission to deliver exceptional value to our clients and contribute positively to the entire industry.

Chris Adams, CEO, SharpRank

Eric Frank, co-founder and CEO of Odds On Compliance, also commented on the matter. He shared his team’s delight about partnering with SharpRank and added that the new alliance will pair sophisticated technology with advanced analytics to “raise the bar” in the sports betting sector.

Together, we will deliver unparalleled insights, accuracy, and value to our clients, enabling them to stay ahead in this rapidly evolving landscape.

Eric Frank, co-founder & CEO, Odds On Compliance

In March, Odds On Compliance launched its Marketing Affiliate Licensing Portal to help affiliates looking to make a foray into the USA.

The post Odds On Compliance Teams Up with SharpRank to Revolutionize Betting appeared first on Keno Wizard.

Gambling and betting giant bet365 has penned a partnership extension with Rightlander, a leading provider of innovative affiliate compliance solutions. The deal highlights the operator’s desire to promote safer gambling, as well as its commitment to high compliance standards.

Rightlander and be365 have worked together for some time with the former company providing its comprehensive cutting-edge compliance tools to the operator. The partnership has since become an important part of bet365’s affiliate program.

As agreed, Rightlander will continue to leverage its solutions to help bet365 maintain ethical advertising standards and navigate the complex regulatory landscape. Rightlander offers many advanced features and tech solutions that are designed to help bet365 and other partners remain compliant and stay in touch with regulatory changes.

In addition, the extended contract is expected to provide a boost to bet365’s compliance infrastructure while driving innovation in affiliate compliance within the iGaming sector. According to the official announcement, the partnership between the two parties will continue to be exemplary for industry standards of affiliate compliance.

The extended agreement highlights the two companies’ desire to promote safer gambling.

Last year, Rightlander announced a new partnership with the international affiliate marketing network Tradedoubler, expanding its global reach. In October 2022, the company updated its library of solutions with a new marketing compliance tool.

The Companies Are Happy to Deepen Their Ties

Nicole Mitton, Rightlander’s head of customer success, commented on the partnership extension. She said that she is thrilled by the opportunity to continue working with the operator and deepen its relationship with her company.

According to Mitton, the new agreement underscores the effectiveness of Rightlander’s tools.

This renewed agreement is a testament to the effectiveness of our compliance solutions, and we look forward to continuing to help bet365 promote responsible gambling and adhere to regulatory requirements.

Nicole Mitton, head of customer success, Rightlander

A spokesperson from bet365 also commented on the matter, saying that they are very excited to renew the operator’s contract with Rightlander. The representative applauded the solutions provider’s comprehensive compliance solution, which has become “an integral part” of bet365’s affiliate program.

The extended partnership reinforces our commitment to responsible gambling and our dedication to providing a secure and fair environment for all our customers.

Bet365 spokesperson

In other news, bet365 just launched a new fantasy game together with Scout Gaming. A few days earlier, the company unleashed “Unleash the Mercenary,” a brand new casino title developed in partnership with Incentive Games. 

The post Rightlander, bet365 Extend Affiliate Compliance Deal appeared first on Keno Wizard.

A non-compliance notice was handed down to NeoGames by NASDAQ, following the exit of the company’s chair of the Audit Committee and member of the Compensation Committee and Nominating and Corporate Governance Committee Lisbeth McNabb.

McNabb exiting – rather abruptly too – prompted the exchange to intervene and deemed the company non-compliant specifically because it lacked three members on its Audit Committee. McNabb himself left voluntarily and amicably, but NASDAQ still deemed it inappropriate.

The non-compliance notice though has not prompted any bigger change as the company had a grace period until October 18 to appoint a third member, which it now has. This is where Steve Capp has entered his role as an independent and non-executive director and the latest addition to the Audit Committee, and all other positions vacated by his predecessor.

Capp is also a heavyweight in the gambling industry, having served as chief financial officer at Bally’s Corporation in the past and holding the same role with Pinnacle Entertainment, two very well-established companies in the gaming space.

Compliance Restored as NeoGames Continues Business as Usual

Commenting on his appointment, NeoGames CEO Moti Malul said that the man makes a valuable addition to the board, adding:

Steve is a highly experienced executive who brings leadership, deep expertise, and professional experience to our board.

NeoGames CEO Moti Malul

His appointment does not happen in a vacuum either, as NeoGames has been actively looking or expand and strengthen its executive expertise. Previously, the company appointed Motti Gil who is going to replace Raviv Adler, the outgoing CFO, starting on July 31, 2023.

The restoration of a compliance status comes at an important time for the company as NeoGames is being acquired by Aristocrat, for a sum total of $1.20 billion. The plan is to see one of Aristocrat’s subsidiaries merge with NeoGames’ existing operations.

The post NeoGames Restores Compliance Status with NASDAQ appeared first on Keno Wizard.

Despite remaining one of Australia’s leading operators, Star remains in a precarious position. Ongoing controversies, falling stock prices, and regulatory pressures have urged the company to take urgent measures or face further damage to its business. Hodgson’s appointment marks the end of Star’s board renewal program, hopefully providing sufficient breathing room to focus on stabilizing its business.

Hodgson’s Talents Round Out the Star Management Team

Star Entertainment Group launched its board renewal program in response to the money laundering scandals that rocked the company and the subsequent regulatory scrutiny it faced. The initiative aims to revamp the operator’s governance practices, enhance oversight, and reinforce compliance measures to prevent similar incidents in the future. Its completion marks a significant milestone on Star’s journey back towards compliance.

Peter Hodgson brings a wealth of financial services expertise to his role as a non-executive director at The Star Entertainment Group. He possesses an impressive financial sector background, including executive positions at leading institutions like Judo Bank and Victoria’s Centre for Evidence and Implementation. Star chairman David Foster lauded Hodgson’s expertise, welcoming him to the company.

With his extensive commercial, governance, and risk management experience, Peter is well positioned to contribute to The Star’s remediation and transformation.

David Foster, Star Entertainment chairman

Hodgson’s appointment will hopefully bolster the company’s governance framework and strengthen its risk management capabilities. The new non-executive director’s deep understanding of financial operations and regulatory compliance will be invaluable in rebuilding the company’s reputation and establishing robust controls in line with Australian and international law.

The Operator Is Still in Hot Water

Following the money laundering scandals, Star Entertainment faced intense scrutiny from regulators, investors, and the public. By completely refreshing its leadership team and focusing on experienced professionals like Hodgson, the company demonstrates its commitment to addressing past shortcomings and implementing more robust controls to prevent future breaches. This renewed focus on lasting compliance is crucial to restoring faith in the company and its operations.

With the completion of its board renewal program, Star is ready for a new chapter in its corporate journey. The company has taken proactive steps to address past issues and reinforce its commitment to integrity, compliance, and sound governance. By leveraging the expertise and experience of its new management team, the operator is well-positioned to navigate its current pressing challenges.

Despite Star’s significant progress, the operator is far from redeemed. Substantial fines, ongoing lawsuits, and financial pressures pose significant risks, necessitating a swift and skilled response. The new management team will be hard-pressed to guide the company through these turbulent times, but their combined skills will hopefully prove sufficient for the task.

The post Star Entertainment Onboards Peter Hodgson, Taking a Decisive Step toward Compliance appeared first on Keno Wizard.

This comes as Grand Casino Luzern faces stiffer competition from local operators that are equally determined to secure the highest possible market share. To achieve this, companies have been transitioning from land-based-only operations to adding online casinos. Mycasino, Grand Casino Luzern’s digital gambling arm, has been one of those.

Regula Helps with New Player Onboarding and Eliminates Mistakes

Now, the casino will leverage Regula’s advanced ID verification solutions that are based on manual checks and allow the operator to achieve the highest possible standard when it comes to identifying a customer and verifying important information about them. This is done to avoid money laundering, strengthen counter-terrorism financing, and generally protect consumers from irresponsible gambling patterns.

Mycasino has picked Regula Document Reader SDK following a recommendation from BW2, a business partner. Regula’s tool makes it possible to recognize the uploaded identity documents and verify them as genuine (or not) in seconds.

This means that mycasino’s staff will have a powerful tool that not only strengthens the compliance side of the business but similarly allows the company to speed onboarding along, reduce manual workload, and further reduce the chance of misreading a document or entering inaccurate data that could have serious implications for players and the casino.

Regula Document Reader SDK is touted as a well-rounded solution that makes it very easy to look up specific information in a submitted document that will automatically cross-reference information about IDs and decide based on that.

Compliance with Data Laws and Strengthening Security

No IDs are extracted or relayed to third parties, as mycasino is the only entity handling the data. Commenting on this, Grand Casino Luzern CEO Wolfgang Bliem said:

We are very satisfied with the outcome. Implementing Regula’s solution has helped us to be more efficient while maintaining our high standards for quality and compliance.  

Grand Casino Luzern CEO Wolfgang Bliem

Similarly, Regula EVP of identity verification solutions Henry Patishman said that the company was proud to be working with Grand Casino Luzern and start a new chapter for the company in the online gambling vertical, making the verification process smooth for partners and clients.

Switzerland has had an online gambling market for several years now, with the country only allowing local operators to hold licenses and run business activities in the market, as part of pension reform.

The post Grand Casino Luzern Picks Regula to Up KYC Compliance for mycasino appeared first on Keno Wizard.