Evolution Closes Brazil Studio and Criticises Online Gambling Ban
Brazil.- 28 October 2026 | www.zonadeazar.com Evolution, one of the world’s leading suppliers of online casino technology and content, has criticised Brazil’s ban on digital gambling and confirmed the closure of its live casino studio in the country.
Martin Carlesund, Chief Executive Officer of Evolution, described the decision by President Luiz Inácio Lula da Silva’s government as the result of a “populist agenda” that dismantled a regulatory framework established only 18 months earlier.
Despite withdrawing its local operations, Evolution remains open to returning to Brazil if the restrictions are reversed.
Brazil Dismantles Its Regulated iGaming Market
Brazil launched its regulated online sports betting and casino market in January 2025, attracting substantial investment from international operators and technology suppliers.
However, in September 2026, President Lula signed Provisional Measure No. 1,394, prohibiting the offering, intermediation and advertising of online gambling products.
The measure established a transition period for licensed operators to wind down their activities.
From 6 October, regulated online gambling platforms were required to cease operations in Brazil.
The restrictions took immediate effect, although the measure must still complete the legislative process to become permanent law.
Evolution Criticises the Government’s Decision
During Evolution’s third-quarter 2026 earnings presentation on 23 October, Carlesund expressed concern about the speed with which Brazil’s regulatory framework had changed.
The executive particularly questioned the decision to prohibit an industry after numerous companies had invested in infrastructure, technology and licences to operate legally.
According to Carlesund, dismantling a regulated market after only 18 months creates significant uncertainty for businesses.
Evolution believes such developments undermine investor confidence and make long-term planning more difficult.
Live Casino Studio Closes in São Paulo
Following the introduction of the restrictions, Evolution closed its São Paulo live casino studio on 5 October 2026.
The facility had opened in 2025 to support the development of Brazil’s regulated gaming market.
The closure represents a direct operational consequence of the prohibition and affects Evolution’s local presence.
The company confirmed that its immediate priority is supporting affected employees and managing the practical consequences of the shutdown.
Evolution Remains Ready to Return
Despite the closure, Evolution has not ruled out resuming its Brazilian operations.
Carlesund stated that the company could return quickly if the regulatory environment once again allowed licensed online gambling.
“If Brazil reopens its market, we are ready to accelerate,” the executive said.
Evolution continues to recognise Brazil’s commercial potential, although any renewed investment will depend on future regulatory developments.
A Negative Outcome for the Industry
During the financial presentation, Carlesund was asked whether Evolution might indirectly benefit from the restrictions imposed in Brazil.
The executive rejected that interpretation and described the prohibition as an entirely negative development for the industry.
From his perspective, the abrupt regulatory change affects both technology suppliers and operators that previously invested in the licensed market.
The company also acknowledged that uncertainty makes it difficult to forecast future player activity and revenue generated from Brazil.
Other Suppliers Express Similar Concerns
Evolution is not the only international supplier to question Brazil’s regulatory decision.
Kambi, a leading sports betting technology provider, has also expressed disappointment with the government’s approach.
Both companies argue that sudden regulatory changes can damage investor confidence and complicate commercial planning.
Kambi has similarly indicated that it would consider returning to Brazil if the legal framework changes.
Third-Quarter Financial Performance
The Brazilian developments coincided with Evolution’s third-quarter 2026 financial results.
During the period, the company reported:
- Total revenue: €526.1 million.
- Year-on-year revenue growth: 3.7%.
- Adjusted EBITA: €345.9 million.
- Adjusted EBITA margin: 65.8%.
- RNG segment growth: 10.1%.
- Live casino growth: 2.6%.
The results demonstrate continued revenue growth across the group, although the Brazilian restrictions introduce uncertainty regarding fourth-quarter performance.
Evolution Maintains Its 2026 Guidance
Despite closing its Brazilian studio, Evolution has maintained its financial guidance for the full 2026 financial year.
The company continues to target an operating margin of approximately 66% and has not announced any changes directly resulting from its Brazilian withdrawal.
Carlesund noted that Evolution has previously experienced regulatory volatility and retains the flexibility to adapt its operations.
However, he declined to quantify the eventual impact of the prohibition on revenue and operating costs.
Brazil’s Regulatory Future Remains Uncertain
The gambling ban is also facing legal challenges in Brazil.
The Federal Supreme Court is expected to examine arguments against the measure, while Congress remains responsible for determining its legislative future.
The Brazilian Government has defended the restrictions as a response to household indebtedness, public health concerns and children’s exposure to gambling.
Industry representatives, meanwhile, have warned about potential losses in investment, employment and tax revenue, alongside the risk of increased unlicensed gambling activity.
Industry Impact and Next Steps
Evolution’s studio closure represents one of the clearest commercial consequences of Brazil’s online gambling prohibition.
The development highlights how regulatory decisions can rapidly reshape the strategies of international gambling operators and suppliers.
For now, Evolution will continue managing the operational impact of the closure while monitoring legal and legislative developments.
The company remains willing to return, but resuming its Brazilian operations will depend on the country permitting the reopening of its regulated online gambling market.
Edited by: @fonta
