Evolution has been ordered to pay £4.75 million ($6.4 million) as a result of a Gambling Commission investigation that began in December 2024. The inquiry revealed that Evolution's content was accessible through two operators across six unlicensed websites.
During a Q2 earnings call on Friday, CEO Martin Carlesund confirmed that the settlement would not impact Evolution's UK operations in the future. He stated, “We settled with them [UKGC]. There are no changes in our way of doing things in the UK for a while, and we have no changes coming up.”
Carlesund took this opportunity to express his concerns over increased gambling taxes in Europe, particularly after the UK’s Remote Gaming Duty nearly doubled from 21% to 40% on April 1 this year. He noted, “When it comes to the balance of the regulatory situation in any jurisdiction… as soon as you raise the tax to a certain limit, you will lose channelisation.” He referenced experiences in regions like the UK and the Netherlands, where channelisation has declined significantly.
Despite some signs of recovery, Europe remains a source of frustration for Evolution, with revenue recently experiencing declines. However, in Q2, the region recorded a slight growth of 3.5% compared to Q1. Latin America stood out as a strong performer, with revenue up 26.3% year-on-year, while North America saw a 9.5% increase over the same period.
Nonetheless, Asia faced challenges, suffering a 3.7% decline in revenue attributed to rising cybercrime. Overall, Evolution's net revenue dropped by 1.2% to €517.8 million for the quarter, while EBITDA decreased to €341 million from €345.3 million during Q2 2025.
For the first half of the year, net revenue fell 1.4% to €1.038 billion, with EBITDA slipping from €687.2 million to €676.3 million. Despite these setbacks, Carlesund expressed satisfaction with the overall Q2 performance, highlighting positive cash flow and continued expansion in key markets. “Revenue and margin are moving in the right direction compared to the first quarter,” he remarked.
In July 2024, Evolution announced its intent to acquire Galaxy Gaming, a table games specialist, for approximately $85 million. However, the deadline for closing the deal is set for Friday, meaning either party may terminate the agreement. This acquisition has faced several regulatory challenges in the US, but Carlesund emphasized its non-critical nature to Evolution's operations, saying, “The outcome has no material impact on our existing business, our US operations, or our long-term ambitions.”
Evolution's Q2 report indicated that 16% of its net revenue originated from North America, trailing Asia at 37% and Europe at 33%.
