Evolution Gaming has agreed to a settlement of £4.75 million with the UK Gambling Commission following an investigation into its potential involvement in black market activities that began in December 2024.
The regulatory inquiry revealed that Evolution's game content was accessed through two unlicensed operators operating on six websites, which provided content to British consumers without holding a UK license.
In a statement released on Wednesday, Evolution indicated that the unlicensed operators had "actively evaded restrictions in place at the time." The company further noted that during the 18-month review, there was "no broader pattern of unlicensed access to Evolution content in the UK."
The statement emphasized the company’s commitment to regulatory cooperation, saying, "Evolution has fully cooperated with the Commission consistent with its longstanding approach to regulatory engagement." Furthermore, it mentioned that technical and legal measures are routinely taken to prevent unauthorized access to its content. The commercial agreements with the two operators involved were terminated immediately upon their activities being uncovered.
After the investigation commenced in 2024, Evolution initiated ring-fencing measures throughout Europe to guard against its games being supplied through any other unlicensed operators, which subsequently impacted profitability.
In its Q1 2025 financial report, Evolution acknowledged that these adjustments, along with its potential withdrawal from several black and grey markets, negatively affected its revenue. Profit for the quarter was reported at €254.7 million ($289.7 million), reflecting a decline of 5.4%, despite a 3.9% year-on-year increase in group net revenue amounting to €521 million.
CEO Martin Carlesund noted in the earnings report, "On top of what we have already done in the UK to meet regulatory requirements, we have taken proactive and self-initiated actions in February to ring-fence additional regulated markets in Europe. The effects have varied, with the largest negative revenue impact in markets where channelisation is low."
By the time of the full year 2025 results release in February, Carlesund asserted that Evolution had "the strongest ring-fencing measures in place among all [the sector’s] suppliers." However, he attributed some financial losses to the challenges faced by regulated markets.
Given the hurdles in its European operations, Evolution has redirected its focus toward the Americas, where it anticipates better growth prospects and a "more stable environment."
Initially, Evolution had expected the Gambling Commission's review to be completed by the end of 2025. In a Q3 earnings call the previous October, Carlesund stated, "When it comes to the UK Gambling Commission timeline, unfortunately I don’t have any other information. It’s in the hands of the regulator and our estimation is that it will be by the end of this year."
