Evolution CEO calls Brazil gambling ban a 'total negative' as studio stays closed

24/10/2026
Evolution CEO calls Brazil gambling ban a 'total negative' as studio stays closed

Live casino supplier Evolution has temporarily shut its studio in Brazil following the country's sudden ban on licensed gambling. Chief executive Martin Carlesund told analysts on the company's third-quarter earnings call that the industry was "flabbergasted" by the decision.

Uncertainty in Brazil

Brazilian President Luiz Inácio Lula da Silva announced the ban in late September, and it took effect in early October. The regulated online market had been running for less than two years. Evolution had opened its São Paulo studio only last year.

Carlesund called the move a "total negative" for anyone in the business. He said it was unfortunate that a populist agenda could overturn a regulatory framework that had been in place for only around a year and a half.

The sector is now waiting for Brazil's Supreme Federal Court to rule on whether the ban is unconstitutional. Carlesund said the studio could reopen at short notice and that Evolution was ready to expand quickly if the market returns. When asked whether Brazilian revenue could fall to zero, he said the company would monitor the situation, adding that no one really knows what will happen.

Evolution kept its full-year margin guidance unchanged. Its Latin American business grew 23.1% year-on-year in the third quarter, although this figure did not yet include the effect of the Brazilian suspension.

Quarterly results

  • Net revenue rose 3.7% year-on-year to €526.1 million.
  • Adjusted EBITDA increased 2.7% to €345.9 million.
  • Africa grew 23.7% and North America 13.6% year-on-year.
  • Europe grew 0.4% quarter-on-quarter but fell 4.7% year-on-year.

Carlesund described the European performance as "not exciting" and said the company "should do better" there. He said regulatory changes and taxes across European markets had drawn attention away from working with customers. He added that a few stable quarters would help the company improve.

Cybercrime in Asia

Evolution has previously reported cyberattacks aimed at its distribution in Asia, with Carlesund saying last year that someone was stealing its products. He said the problem has not yet been solved. Asian revenue rose 0.8% quarter-on-quarter and 1.6% year-on-year. He said the company's technical measures were gaining traction, but warned there could be volatility ahead. He added that Evolution was "playing the long game".

Playtech dispute continues

Carlesund also gave a brief comment on Evolution's long-running legal battle with Playtech. The dispute relates to a 2020 investigation by intelligence firm Black Cube, which Playtech had commissioned. Black Cube's report alleged that Evolution supplied games in prohibited and sanctioned markets. Carlesund said the lawsuit would continue, and that the company was doing everything it could.

Source: iGaming Business