Evolution Revenue Rises 3.7% as CEO Criticises Brazil Gambling Ban

Sweden.- 27 October 2026 | www.zonadeazar.com Evolution has reported third-quarter 2026 revenue of €526.1 million, representing year-on-year growth of 3.7%.

The Swedish live casino and online gaming supplier returned to revenue growth, supported by strong performances in North America, Latin America and Africa.

However, during the company’s earnings presentation on 23 October, CEO Martin Carlesund strongly criticised Brazil’s online gambling prohibition, which forced Evolution to temporarily close its Brazilian studio.

Key Financial Results

Evolution reported the following third-quarter figures:

  • Revenue: €526.1 million, up 3.7%.
  • Adjusted EBITDA: €345.9 million, an increase of 2.7%.
  • Adjusted EBITDA margin: 65.8%, compared with 66.4% a year earlier.
  • Net profit: €243.3 million, down 3.6%.
  • Live casino revenue: €443 million, an increase of 2.6%.
  • RNG gaming revenue: €83.1 million, up 10.1%.

The figures indicate a recovery in revenue growth, although profitability margins narrowed slightly.

Latin America Records 23.1% Growth

Regional performance was among the most positive developments during the quarter.

North American revenue increased by 13.6%, while Latin America grew by 23.1% and Africa recorded growth of 23.7%.

By contrast, European player revenue declined by 4.7% year-on-year.

Carlesund acknowledged that the company still needs to improve its European performance, regardless of the regulatory difficulties affecting the wider industry.

CEO Criticises Brazil’s Gambling Prohibition

Brazil was one of the main concerns raised during Evolution’s financial presentation.

The Brazilian Government’s decision to prohibit regulated online gambling forced Evolution to close its Brazilian studio on 5 October 2026.

Carlesund was particularly critical of the speed at which the regulatory framework had been reversed.

He described it as deeply unfortunate that a political agenda could overturn a regulated system established only a year and a half earlier.

The executive also argued that the situation represented a negative development for businesses that had invested in the country and obtained licences to operate legally.

Uncertainty Surrounding the Fourth Quarter

Evolution remains unable to determine when its Brazilian operations might resume.

During the earnings call, Carlesund declined to quantify the potential financial impact of the suspension during the fourth quarter.

Latin America generated €49 million in third-quarter revenue, before the Brazilian prohibition affected operations.

According to the company, Brazil accounts for substantially less than half of the region’s revenue.

The CEO confirmed that Evolution is prepared to reopen its Brazilian operations quickly if the prohibition is reversed.

Despite the uncertainty, the company has maintained its full-year 2026 margin guidance.

Evolution Slows Share Buybacks

Another financial announcement concerned Evolution’s share repurchase programme.

By the end of September, the company had repurchased approximately €1.13 billion of shares under an authorised €2 billion programme.

Chief Financial Officer Joakim Andersson explained that repurchases would slow during the fourth quarter of 2026 and the first quarter of 2027.

The objective is to preserve investment capacity and align the programme more closely with cash generation.

Expansion in the United States

While facing regulatory challenges in Brazil, Evolution continues expanding its US operations.

The company announced that:

  • Its fourth New Jersey studio is scheduled to open during the fourth quarter.
  • The facility will also serve the Delaware market.
  • The expansion will bring Evolution’s total number of US operational hubs to eight.
  • The company is preparing to launch Spinning Whale, a new RNG brand specifically targeting American players.

The strategy is designed to strengthen Evolution’s position in one of the world’s leading regulated gambling markets.

Industry Impact and Next Steps

Evolution’s results demonstrate a return to international revenue growth, supported by Latin America, North America and Africa.

However, Brazil’s gambling prohibition remains one of the company’s principal uncertainties heading into the fourth quarter of 2026.

Evolution will continue assessing regulatory developments while maintaining its ability to respond to a potential reopening.

For the iGaming industry, the situation highlights the importance of regulatory stability and legal certainty for international investment.

Editó: @fonta

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