Evolution, a major player in the gaming sector, has been directed by the Gambling Commission to pay £4.75 million ($6.4 million) following an investigation that commenced in December 2024. The regulator found that Evolution's content was accessible through two operators on six unlicensed websites.
During a post-Q2 earnings call, CEO Martin Carlesund affirmed that the settlement would not alter Evolution’s operations in the UK. "We settled with them [UKGC]," Carlesund stated. "There are no changes in our way of doing things in the UK for a while, and we have no changes coming up."
Carlesund used the opportunity to express his views on the rising gambling taxes in Europe, particularly highlighting the UK’s Remote Gaming Duty, which nearly doubled from 21% to 40% on 1 April this year. He remarked, "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 cited examples from regions like the UK and the Netherlands, where channelisation fell to 50%. He called for regulators to find a better balance, while stressing that Evolution will comply with existing regulations and understand the rationale behind them.
Despite facing challenges, particularly in Europe where it was experiencing several quarters of declining revenue, Carlesund noted a modest turnaround in Q2, with revenue increasing by 3.5% from Q1. In contrast, Latin America emerged as a strong performer for Evolution, boasting a 26.3% year-on-year revenue growth, and North America grew by 9.5% from the previous year. However, in Asia, heightened cybercrime led to a 3.7% decrease in quarter-on-quarter revenue.
Overall, Evolution reported a net revenue decline of 1.2% to €517.8 million in the latest period, with EBITDA dropping to €341 million from €345.3 million in Q2 2025. For the first half of the year, net revenue fell by 1.4% to €1.038 billion, and EBITDA decreased from €687.2 million to €676.3 million. Despite these declines, Carlesund expressed satisfaction with Q2 performance, noting improvements in revenue and margin compared to Q1, effective cost control, and strong cash flow.
"The road is almost never straight, but what matters is that we are moving forward… Some curves are harder than others, but they can also be fun. And the same goes for Evolution," he concluded.
In a different matter, the anticipated acquisition of Galaxy Gaming, a specialist in table games and casino technology, appears to be in jeopardy. The deal, valued at approximately $85 million, was announced in July 2024, but with the closing deadline set for Friday, either party may now opt to terminate the agreement due to ongoing regulatory hurdles in the US. Carlesund indicated that while Galaxy is a respected company, the acquisition is not essential, stating, "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."
In its Q2 report, Evolution revealed that 16% of net revenue originated from North American player IP addresses, trailing behind Asia at 37% and Europe at 33%.
