Evolution is set to continue its operations in the UK without any changes following a settlement with the Gambling Commission. The settlement, resulting from an investigation that began in December 2024, requires Evolution to pay £4.75 million ($6.4 million) due to the discovery of its content appearing on six unlicensed websites through two operators.
In a discussion surrounding the regulatory settlement during the company's Q2 earnings call on Friday, CEO Martin Carlesund stated that the agreement would not alter their current methods in the UK. "I mean, we settled with them [UKGC]," Carlesund remarked. "There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
Carlesund also voiced his concerns about increases in gambling taxes throughout Europe. He referenced the nearly doubled Remote Gaming Duty in the UK, which jumped from 21% to 40% on April 1 this year. "When it comes to the balance of the regulatory situation in any jurisdiction, not in particular to the UK, as soon as you raise the tax to a certain limit, you will lose channelisation," he explained. He pointed out that countries such as the UK and the Netherlands have seen channelisation rates drop to 50% after tax increases, a trend he believes is detrimental.
On a regional scale, Carlesund described Europe as a significant challenge for Evolution, although he reported a positive shift with a 3.5% revenue increase from Q1 to Q2 this year. Meanwhile, Latin America stood out with a substantial 26.3% year-on-year revenue growth, and North American revenue saw a 9.5% increase in the same timeframe. However, Evolution encountered a 3.7% decrease in Asia, attributed to rising cybercrime issues.
Overall, Evolution's net revenue fell by 1.2% to €517.8 million in the quarter, while EBITDA dropped to €341 million, down from €345.3 million reported in Q2 of 2025. In the first half of the year, net revenue saw a decline of 1.4% to €1.038 billion, and EBITDA decreased from €687.2 million to €676.3 million.
Despite the downturn in revenue and EBITDA, Carlesund expressed a positive outlook on the company’s performance in Q2. "Revenue and margin are moving in the right direction compared to the first quarter, cost control remains strong, cash flow is improving and we continue to expand in key markets while executing on our product roadmap," he commented.
Evolution's attempt to acquire Galaxy Gaming, a provider of table games and casino technology, is also facing uncertainty. Announced in July 2024 for about $85 million, the deal's closing period expires on Friday, allowing either party to withdraw. Carlesund made it clear that this acquisition is not critical to Evolution’s operations, stating, "Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition. Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions."
Finally, according to Evolution’s Q2 report, 16% of its net revenue came from players’ IP addresses in North America, with Asia representing 37% and Europe at 33%.
