Evolution Gaming regained its 19% share price drop after addressing concerns made by a third party and through an announcement that they will become the first live dealer game provider in a South American nation.
What is Evolution Gaming?
Evolution AB is a Swedish B2B product supplier in the online gaming space. They work with a wealth of online casinos and bookmakers to develop and supply them with high-quality games. Evolution Gaming works with more respected casinos than any other game development company in the market.
They have found recent success by creating live casinos games, which take elements of classic table games and merge them with new formats. The top-rated Monopoly Live game is a prime example. This revolutionary casino game incorporates aspects of roulette with Monopoly, encompassing a live dealer with a game show vibe. All the action is provided through a live stream from their studios, making online gambling even more realistic.
Stock price drops
Evolution AB (EVO) share price fell drastically by 19% and reducing the company’s value by a significant 96 billion Krona. The reason for the dip in share price is due to a competitor suggesting the business has been operating in illegal jurisdictions. As a result, the company itself reached out to regulators in New Jersey for an internal review of operations. The allegations came off the back of private investigators surveying the company and how it operates. As well as launching an internal investigation, Evolution AB stated that they do not handle player money and only supply games to casinos.
Stock surging again
Evolution AB (EVO) stock has since made up ground– and more. The Swedish company has addressed the allegations with a statement, suggesting the accusations of illegal operation is from a third party that has the sole purpose of wrongfully discrediting the company. The gaming firm states it only supplies games to licensed operators and carries out extensive due diligence on the casinos and bookmakers. This is in addition to ensuring the company is operating within local legislation.
Another critical reason why confidence has been restored is due to the news that Evolution Gaming will become the first live casino provider in a regulated Argentinian market. By entering a new South American market, the company can provide its games to even more casinos that operate legally within Argentina. Thus, the business is in pole position to keep growing legitimately as a market leader.
Is Evolution Gaming a safe investment?
Evolution is one of the most successful game development companies in the world. What makes them an attractive investment is that they are one of the industry’s top innovators and continue to penetrate new markets for sustained growth. If investors buy stock in Evolution AB, they should do so after conducting their own research and as part of a diverse portfolio.