Evolution has been ordered to pay £4.75 million ($6.4 million) following a Gambling Commission investigation that began in December 2024. The investigation revealed that Evolution’s content was accessible through two operators on six unlicensed websites.
During a Q2 earnings call held on Friday, CEO Martin Carlesund addressed the regulatory settlement, asserting that it would not impact the company’s UK operations. “We settled with them [UKGC],” Carlesund stated, adding that there would be no changes in their UK practices.
Carlesund also voiced his opposition to increasing gambling taxes across Europe, highlighting the rise of the UK’s Remote Gaming Duty from 21% to 40% on April 1st. He noted, “As soon as you raise the tax to a certain limit, you will lose channelisation.” He referred to previous reductions in channelisation rates seen in regions like the UK and the Netherlands, advocating for a better balance in regulatory policies.
In discussing the company's performance, Carlesund described Europe as a significant challenge, referring to it as Evolution’s "main headache right now" after several quarters of revenue declines. However, he noted a positive turn in Q2, with revenue increasing by 3.5% compared to Q1.
Latin America continued to shine for Evolution, showing a 26.3% year-on-year growth, while North American revenue also rose by 9.5% compared to the same quarter last year. Despite these regional successes, Asia faced a setback with a revenue decline of 3.7% due to rising cybercrime.
Overall, Evolution’s net revenue decreased by 1.2% to €517.8 million for the quarter, with EBITDA falling from €345.3 million in Q2 2025 to €341 million. For the first half of the year, net revenue dropped 1.4% to €1.038 billion, and EBITDA declined from €687.2 million to €676.3 million.
Despite these metrics, Carlesund expressed satisfaction with Q2's performance, stating, “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.” He reflected on the varied nature of business progress, saying, “The road is almost never straight… Some curves are harder than others, but they can also be fun.”
Furthermore, the anticipated acquisition of Galaxy Gaming, valued at approximately $85 million, is at risk of falling through as the closing period is set to expire on Friday. Carlesund highlighted that while Galaxy is a valuable company, its acquisition was not crucial to Evolution’s operations and would not materially affect its business or long-term plans. During the Q2 presentation, it was revealed that 16% of Evolution’s net revenue was derived from players’ IP addresses in North America, with Asia accounting for 37% and Europe 33%.
