Martin Carlesund, the CEO of Evolution, a leading live casino provider, announced that the company may reopen its Brazilian live casino studio despite concerns following the re-election of Luiz Inácio Lula da Silva and the newly imposed betting ban. Carlesund expressed disappointment over the sudden closure of the studio, which he deemed "extremely regrettable." This closure was mandated by Provisional Measure 1.394/2026, an order that prohibits online sports betting and casino gambling. The studio was shut down on October 5.
While discussing the potential impact of the closure on the company's operations in the fourth quarter, Carlesund refrained from making specific predictions about future developments. Lula secured his position in the presidential runoff against Flávio Bolsonaro on October 25, garnering 51.76% of the votes. Although he has pledged to uphold the ban, the future of the regulations will depend on decisions made by Congress and the courts.
Congress has until November 23 to vote on the provisional measure, while Supreme Court Justice Luiz Fux is set to oversee lawsuits brought forward by industry associations ANJL and IBJR.
Carlesund stated to analysts, "If Brazil reopens its market, we are ready to accelerate."
As for the revenue impact from Brazilian markets, Carlesund did not confirm whether it would drop to zero in the fourth quarter. He explained that revenue is not classified by country in their business structure and deemed any suggestion that the closure might result in a short-term advantage for Evolution as inappropriate. He emphasized that comparing Brazil's restrictions to previous measures in other markets is challenging, particularly since operators had invested in five-year licenses.
Despite the uncertainty, Evolution is holding firm to its year-end margin target. The company's year-to-date EBITDA margin stands at 65.7%, slightly below the target of 66%. In the third quarter, Evolution reported revenues of €526.1 million, marking a 3.7% increase year-over-year, and an adjusted EBITA of €345.9 million. Revenues from remote games rose by 10.1%, while those from live casino operations saw a 2.6% increase.
