After undergoing a Gambling Commission investigation that began in December 2024, Evolution has been fined £4.75 million ($6.4 million). The Commission found that content from the supplier giant was available through two operators on six unlicensed websites.
In a post-Q2 earnings call on Friday, CEO Martin Carlesund addressed the settlement, asserting that it would not impact Evolution's operations in the UK. "I mean, 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 also spoke out against increasing gambling taxes across Europe, particularly highlighting the UK's Remote Gaming Duty, which nearly doubled on April 1 from 21% to 40%. He noted that when taxes rise excessively, it could lead to decreased channelisation. "You have seen that in many [regions] such as the UK and the Netherlands, [where] the channelisation reached 50%. And that is not good."
He urged for better balance in regulatory measures, maintaining respect for the existing regulations while expressing concerns that tax increases could negatively affect channelisation rates.
In terms of revenue, Carlesund described Europe as Evolution's "main headache right now" due to several successive quarters of declines. However, in Q2, the region saw a slight recovery, with a 3.5% increase in revenue from the first quarter. Latin America stood out with a remarkable 26.3% year-on-year growth, while North America also experienced a 9.5% revenue increase compared to last year. Despite these regional successes, Asia faced a 3.7% decline due to rising cybercrime.
Overall, Evolution's net revenue fell 1.2% to €517.8 million, while EBITDA decreased to €341 million from €345.3 million in Q2 2025. In the first half of the year, net revenue dropped 1.4% to €1.038 billion, with EBITDA falling from €687.2 million to €676.3 million.
Despite the downturns, Carlesund expressed satisfaction with the Q2 performance, highlighting improvements in revenue, margin, cost control, and cash flow alongside ongoing expansion in key markets. "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 remarked.
In related news, the acquisition of Galaxy Gaming, announced in July 2024, appears on the verge of collapse. The $85 million deal, which involves acquiring all outstanding shares of the table games and casino technology provider, has faced regulatory hurdles in the U.S. It is set to expire on Friday, allowing either party to terminate the agreement. Carlesund pointed out that while Galaxy is a reputable company, the acquisition is not crucial to Evolution’s overall business, indicating that the company’s existing operations and long-term objectives would not be materially affected by the deal's potential failure.
According to Evolution's Q2 report, 16% of its net revenue originated from customers’ players’ IP addresses in North America, trailing behind Asia at 37% and Europe at 33%.
