Evolution Fined by Pennsylvania Gaming Control Board for Surveillance Failure

On December 18, 2024, Evolution, a leader in the live casino gaming industry, was fined $25,000 by the Pennsylvania Gaming Control Board (PGCB) after it failed to save critical surveillance footage during a two-day power outage at its Philadelphia-based studio. The PGCB meeting revealed that despite the continued operation of live cameras at the studio’s 14 gaming tables, the required footage could not be collected and stored due to a server malfunction.

The failure to save the surveillance footage was a violation of the Pennsylvania Gaming Act, which mandates that all live dealer casinos maintain proper video surveillance of their operations. As Evolution holds an iGaming Manufacturer License in the state, it is required to comply with strict regulatory protocols set by the PGCB to ensure security and transparency within the industry.

This fine follows an earlier penalty of $7,500 issued by the PGCB in August 2024. The fine was levied due to a security breach that occurred in 2023 when an unidentified male managed to bypass security checkpoints and entered restricted areas of Evolution’s Philadelphia studio. The intruder wandered through the premises, including an employee dressing area, and caused disruption before leaving the site. This incident prompted Evolution to reassess and reorganize its security layout in the studio to prevent further breaches.

The PGCB’s regulations require that all visitors to live dealer studios sign in and wear a badge while on the premises. Evolution faced criticism for failing to prevent the intruder from entering the premises using existing security protocols.

In response to these incidents, Evolution has made adjustments to its studio layout and security measures. The company stated that it is committed to maintaining a safe and regulated environment within its operations. Evolution’s management emphasized that they are working closely with the PGCB to ensure full compliance with Pennsylvania’s regulatory framework, particularly regarding the collection and preservation of surveillance footage.

Despite these challenges, Evolution continues to grow rapidly in the U.S. market. In its Q3 2024 earnings report, the company reported an 18.5% increase in revenue. Evolution’s CEO, Martin Carlesund, highlighted the continued expansion of their live casino offerings across various states in North America. He pointed out that the company had added several new games, including Crazy Coin Flip, Super Sic Bo, and Video Poker, which have enhanced player engagement in North America.

Carlesund also discussed the company’s plans to expand its presence in North America by launching Ezugi as a standalone brand outside New Jersey. This strategic move is aimed at providing more options to operators in the U.S. market, furthering Evolution’s expansion in North America. He believes this will bolster the company’s ability to cater to a broader range of operators and players, continuing the company’s growth trajectory in the region.

With the rapid expansion of Evolution in North America and its commitment to improving security and compliance measures, the company aims to navigate the challenges of scaling its operations while adhering to the regulatory requirements of each state. The recent fines highlight the increasing scrutiny of the gaming industry in Pennsylvania, and Evolution’s efforts to enhance its operational standards are expected to ensure that the company can continue to thrive in a competitive market.

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As the regulatory landscape for online casinos and live dealer studios continues to evolve in the U.S., Evolution’s recent challenges remind of the importance of compliance and security within the industry. The PGCB’s enforcement actions underscore the need for gaming companies to maintain high standards, particularly regarding surveillance and access control.

With the ongoing expansion of the iGaming industry in North America, companies like Evolution are working diligently to balance growth with regulatory adherence. The next steps for Evolution will involve implementing stricter security protocols to prevent future breaches and maintaining its focus on expanding its live casino portfolio to meet the growing demand from North American players.

Source:

Live Dealer Studio Operator Fined $25,000 by Pennsylvania Gaming Control Board [pdf], Pennsylvania Gaming Control Board, 18 December 2024.