Will the Mutual Accusations of the Giants Sink the Entire iGaming Industry?

The escalating public battle between iGaming giants Playtech and Evolution – a dispute involving corporate espionage, the controversial firm Black Cube, and allegations of operating in illegal markets – is more than just a fight between two rivals. It’s a conflict now unfolding in the harsh light of day, threatening to expose the entire industry to unwanted scrutiny and potentially destroying the thin layer of legitimacy the sector has tried to build.

The End of Operating “Under the Cover of Night”

Historically, a significant portion of the iGaming world’s activities, especially the more contentious ones, took place “under the cover of night.” Industry skirmishes, regulatory maneuvering, and navigating “grey markets” were largely invisible to the public and, crucially, to mainstream financial and political circles.

The current dispute has ripped this curtain back. When the CEOs of the biggest companies in the sector are forced to play roles more akin to politicians and lobbyists, every public conflict has the potential to negatively impact the entire sector.

The Risk of Exposing the Grey Area

For a long time, iGaming has operated on a very thin line. The sector already struggles with a poor public image, often associated with social harm and questionable regulatory compliance. This dispute highlights the uncomfortable truth: there is no clear division between black and white.

Read more: Could Evolution’s media offensive be their biggest mistake?

The core of the accusations – that a major content supplier may be knowingly offering products in jurisdictions where gambling is completely prohibited – is a sensitive nerve for the entire ecosystem.

Indirect Involvement: Even companies that pride themselves on strict compliance often rely on an extensive network of intermediaries (e.g., aggregators) who may, in turn, deliver content into unregulated territories. This chain of custody makes the entire industry vulnerable to the charge of turning a blind eye.
A “Wild West” Mentality: iGaming was, and in many respects still is, a digital “Wild West.” Following the initial “Dot-com era” where operators acted with relative impunity globally, the regulatory focus shifted to operators. Now, with serious scandals involving suppliers like the aforementioned firm coming to light, the industry may be entering a similar period of reckoning for game providers. The scrutiny and resulting rigor that reshaped the operator landscape a decade ago could now reach the B2B side.

Regulatory Consequences and Collective Punishment

The greatest threat is not just a damaged reputation but the risk of regulatory consequences. The more that mainstream media, financial analysts, and, critically, international regulators are educated about the industry’s less-than-compliant practices, the greater the probability that they will impose stricter, perhaps disproportionate, rules on everyone.

When the integrity of the sector’s leaders is questioned, trust in the entire industry erodes. The focus will shift from the question, “Who commissioned the report?” to “How many of these companies operate in illegal markets?”

Read more: The Playtech-Evolution affair exposes the truth about igaming

The entire industry may suffer collective punishment in the form of increased licensing costs, higher taxes, and more stringent compliance requirements – even for those currently operating strictly within regulated zones.

In an environment that is already fighting to prove its Corporate Social Responsibility credentials, this public dispute may be the catalyst for a painful, industry-wide cleansing process.