US billionaire Kenneth Dart has raised his stake in Evolution to 30.02%, triggering a mandatory Swedish rule that requires him either to bid for all outstanding shares or reduce his holding below the threshold. Dart's investment vehicle Candle Lake Limited reported crossing the limit on 24 July and now has four weeks to decide.
Dart, whose fortune stems from the Solo Cup brand, has long invested in sin stocks including tobacco and gambling but has not previously sought to take companies private. That has fuelled speculation he may trim the stake. The question is why cross the threshold at all. If he does launch a bid, the price must match his most recent purchases — around 700 Swedish kronor (€63.75) per share.
Evolution's share price has been under pressure in recent years. Competitor Playtech commissioned a dossier alleging the company served blacklisted markets, drawing regulatory scrutiny. Evolution disputes many of the claims and calls the report a targeted attack; litigation is ongoing. Some analysts believe public-company status has made things worse, exposing the live-casino supplier to tougher oversight than other industry players face.
That recently scuppered a deal: the purchase of US supplier Galaxy Gaming collapsed after regulators in two states delayed approval. The UK Gambling Commission, meanwhile, wrapped up its licence review on relatively soft terms, finding no 'systemic' illegal access to Evolution content in Britain. Analysts at Rothschild Redburn, however, confirmed the presence of Evolution games on the black market. The company said it could not reproduce the findings and has asked for details to investigate.
Delisting would theoretically lower public scrutiny, but it remains unclear whether Dart will proceed with an actual buyout or simply reduce his position.
