Martin Carlesund, CEO of Evolution, expressed his disbelief at Brazil's sudden ban on licensed betting, deeming it a "total negative" for the industry. As Evolution awaits further clarity on the implications of this decision, it has temporarily shuttered its studio in São Paulo, which was launched just a year prior.
The unexpected ban was announced by President Luiz Inácio Lula da Silva in late September, a mere two years after the regulated online gambling market was established in Brazil.
During Evolution's post-Q3 earnings call, Carlesund articulated the concern within the industry, noting, "I think that everyone is flabbergasted about the situation in Brazil. It’s a total negative for anyone in this business, that it happens in this way." He lamented that a populist agenda has been able to dismantle a regulatory framework that was still in its infancy, having been in place for only a year and a half.
The Brazilian betting market is currently awaiting a ruling from the Supreme Federal Court regarding the constitutionality of Lula’s ban. Carlesund indicated that Evolution's closed studio could reopen quickly if the ban is lifted, stating the company is "ready to accelerate" its operations in Brazil at that time. When asked whether Evolution's revenue from Brazil might drop to zero due to the ban's permanence, he acknowledged the uncertainty but emphasized that the situation would be closely monitored. "The country as such is not ring-fenced, and we will see what will happen with the players. The only comment I had is that we have to monitor the situation in Brazil. No one really knows what will happen. It could be reopened again."
Despite the challenges posed by the ban, Evolution maintained its full-year margin guidance. Carlesund assured analysts that the company’s profitability targets remain intact, even in the likelihood that no revenue would be generated from Brazil in Q4. The company’s Latin American operations reported a robust year-on-year growth of 23.1% in Q3, with this figure not yet reflecting the impact of Brazil’s ban, which was enacted in early October.
In terms of overall performance, Evolution reported a 3.7% increase in Q3 net revenue, reaching €526.1 million ($585.2 million). Adjusted EBITDA saw a slight rise of 2.7%, totaling €345.9 million. This quarter marked a notable recovery for Evolution, as all regions experienced quarter-on-quarter growth for the first time since early 2024. However, while Latin America, Africa, and North America posted significant year-on-year increases, Europe saw only marginal growth of 0.4% quarter-on-quarter and a decline of 4.7% year-on-year. Carlesund described the performance in Europe as "not exciting," insisting that the company "should do better" in that market.
Carlesund attributed part of the difficulties in Europe to regulatory changes and taxation issues, which he believes distract from the company’s primary focus. He expressed hope that maintaining stable conditions in Europe would allow for improved operations and relationships with customers.
The issue of cybercrime in Asia also remains a concern. Last year, Evolution reported facing cyberattacks that were reportedly stealing its products. In an update during the Q3 2026 results, Carlesund noted a modest increase of 0.8% in the region quarter-on-quarter and 1.6% year-on-year, describing it as a step forward, albeit slow. He emphasized the company’s commitment to long-term strategies aimed at securing its product against these ongoing cyber threats, saying, "We are happy where we are technically. We are playing the long game, and I am confident that it will pay off."
On an ongoing legal dispute with Playtech, Carlesund stated that the company is deeply involved in a protracted lawsuit regarding allegations made by Playtech after hiring intelligence firm Black Cube to investigate Evolution’s business practices. He commented, "We are in a full lawsuit with them, and that will continue as we go forward. We’re doing everything we can, and now there’s new steps taken every day."
