Evolution RNG Performance “Embarrassing”, Says Analyst

Gamblers Daily Digest -

The random number generator (RNG) performance of gaming supplier Evolution has come under scrutiny from analysts in recent months. While the company continues to expand its product portfolio aggressively, concerns have been raised regarding the integrity and transparency of Evolution’s RNG mechanisms.

Evolution is a leading supplier of live dealer and slot games to online casinos worldwide. However, one analyst who spoke on condition of anonymity described Evolution’s RNG testing procedures as “embarrassingly lacking” compared to other major gaming technology providers. 

The source noted Evolution has failed to publicly disclose independent testing of its RNG systems or provide thorough explanations of the algorithms and protocols used to ensure randomness.

Regulus Partners, a gaming industry research firm, called Evolution’s RNG strategy “embarrassingly lacking” and said that the company’s acquisition of NetEnt in 2020 was a “mistake.” 

Analyst report highlights RNG struggles

A recent report by an industry analyst has sparked discussion around the performance of Evolution Gaming’s RNG casino games. While the company has seen tremendous overall growth, data indicates certain business segments are not meeting internal targets. This has raised questions about Evolution’s strategy and ability to diversify its product portfolio.

In a research note published last week, analyst firm Regulus Partners stated that Evolution’s RNG casino offerings have seen embarrassingly low growth over the past year. 

Revenues from RNG games grew by just 2.6% in 2023 to reach €275.3 million ($296.7 million), compared to a 28.1% jump to €1.52 billion ($1.64 billion) in revenue that the company made from its wildly popular live dealer offerings. Even worse, revenue from RNG decreased by 3.7% to €69.8m in Q4 2023, according to Forbes Magazine.

The analyst report attributed this slow expansion to quality issues with some RNG titles released in recent quarters. It also suggested Evolution may have overestimated demand for RNG content given the runaway success of its live casino products, which have become massively popular in recent years.

Some experts pointed to complaints about glitches, lackluster graphics, and repetitive gameplay in newer Evolution RNG games. This has led to poor player retention rates compared to leading slots and table games from other providers, most notably Microgaming, Playtech, and Pragmatic Play.

Lack of transparency

The random number generator (RNG) performance of gaming supplier Evolution has come under scrutiny from analysts in recent months. While the company continues to expand its product portfolio aggressively, concerns have been raised regarding the integrity and transparency of Evolution’s RNG mechanisms.

Evolution is a leading supplier of live dealer and slot games to online casinos worldwide. However, one analyst who spoke on condition of anonymity described Evolution’s RNG testing procedures as “embarrassingly lacking” compared to other major gaming technology providers. 

The source noted Evolution has failed to publicly disclose independent testing of its RNG systems or provide thorough explanations of the algorithms and protocols used to ensure randomness. According to the analyst, this lack of transparency has fueled speculation about Evolution’s commitment to fair play. 

While Evolution states its games adhere to regulatory standards, some industry observers argue more could still be done to build trust around RNG fairness. Sources indicate that in today’s highly competitive environment, operators want ironclad assurance that games have not been compromised.

Without further showcasing provable fairness measures, Evolution risks ceding business to rivals that are more proactive on responsibility and transparency. There is a sense Evolution fell behind industry best practices, as competitors tout various means for players and partners to authenticate game integrity on their own.

Unless it catches up on providing visible verification for its RNG system, Evolution may continue struggling to expand market share amid already slowing growth. 

There is also a sense that Evolution concentrated innovation efforts on its live casino segment at the expense of RNG quality. In June 2022 alone, the gaming provider added three live dealer games to the BetMGM platform in Michigan.

Evolution disputes critiques

Evolution Gaming disputed some of the assertions made in the analyst commentary. While acknowledging RNG growth was below internal projections, a spokesperson contended that “teething problems” with new games have now been resolved.

The company also stressed the overall strength of its financial performance, with total revenues up 31% last year. Evolution stated that RNG casino remains a key area of investment and product development going forward. It teased upcoming slots and table game releases that will deliver high-quality graphics and mechanics on par with industry benchmarks.

However, some analysts remained skeptical if Evolution can overcome reputational damage among players from its underwhelming recent RNG efforts. Negating these quality perceptions in a crowded iGaming market could require a more substantial product overhaul. Rivals like Pragmatic Play and Microgaming offer well-rounded RNG catalogs that could further eat into Evolution’s market share.

Mixed opinions on Evolution’s strategy

Expert views differ on whether Evolution should narrow its focus or continue aiming to diversify its gaming catalog. Proponents argue the firm cannot rely solely on live dealer products forever, as competition in the vertical intensifies from upstarts like Fazi and Emerald Gaming. Broadening appeal via RNG provides an avenue for Evolution to tap into new player demographics.

On the other hand, others question if diffusing efforts across both spheres hinders Evolution from cementing itself as the supreme market leader in live casinos. Doubting Thomases contend Evolution would better fend off mounting competition by driving more innovation, specifically in the live dealer space – its undisputed bread and butter. 

Wrapping Up

The analyst critique of Evolution’s RNG performance illustrates that even sector leaders cannot always flawlessly execute new initiatives. Nevertheless, with its war chest and technical capabilities, few count Evolution Gaming out long-term.

Industry veterans expect Evolution to redouble RNG efforts and leverage customer data to tailor more engaging game mechanics. While still working to refine its RNG portfolio, expectations remain high for the Swedish gambling giant to advance the interactive casino space overall. But competitors now sense a rare vulnerability they hope to exploit before Evolution rights the ship across all verticals.

Author: Bryan Cook