Evolution Anticipates Year-End Update on Gambling Commission Review

Evolution is preparing for an update from the UK Gambling Commission (GC) regarding its ongoing license review, which CEO Martin Carlesund expects will come before the year closes. Speaking during the company’s third-quarter earnings call, Carlesund shared his expectations but emphasized that the regulator has yet to communicate a formal timeline.

Carlesund told analysts that while no official deadline has been issued, the company anticipates clarity from the GC in December. “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,” he said.

The review began in December of the previous year after the Gambling Commission found that Evolution’s games were being distributed to unlicensed operators within the UK. This development has been seen as part of the regulator’s broader crackdown on supplier compliance, aimed at limiting the influence of the illegal gambling market.

Gambling Commission CEO Andrew Rhodes has repeatedly cautioned companies to strengthen oversight of their business partnerships to ensure that none are contributing to unregulated gambling activity. The regulator’s increased vigilance underscores its commitment to tightening supplier accountability throughout the industry.

The latest quarter proved turbulent for Evolution, which also faced scrutiny following reports that rival supplier Playtech had ordered a covert investigation into its operations. During Q3, Evolution posted a 2.4% decline in net revenue, totaling €507.1 million.

Carlesund attributed the downturn largely to difficulties in Asia, a region where the company continues to battle cyberattacks and operational disruptions. The CEO described the situation in the Philippines iGaming market as particularly unstable, calling it “very volatile” in its early stages of development.

He further noted that regulatory uncertainty across other emerging markets such as India has complicated the company’s outlook. “Other markets such as India, which in our view show signs of moving towards regulation, create a higher level of uncertainty than before,” he said.

Despite headwinds in Asia, Evolution saw modest gains in its European segment. After a period marked by regulatory ring-fencing and internal compliance measures, the company’s European revenue rose to €182.2 million in Q3, up slightly from €180.2 million the previous quarter. However, this figure represents a 6.5% year-over-year decrease, reflecting lingering effects from the compliance actions introduced earlier.

The ring-fencing initiative began shortly after the Gambling Commission launched its review. Evolution implemented these measures to ensure that its games were not being used in so-called “grey markets,” aiming to reinforce its commitment to regulatory adherence and to distance itself from unlicensed activity.

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While Evolution’s compliance initiatives appear to be stabilizing its European operations, profitability has suffered. The company’s EBITDA fell 18.9% year over year to €337 million, with its EBITDA margin narrowing to 66.4%, compared to 71.7% in the same quarter last year. Net profit also dropped by 23.2%, landing at €252.3 million.

The combination of regulatory pressures, regional volatility, and external scrutiny has made 2025 a testing year for the gaming supplier. Nevertheless, Carlesund maintained that Evolution remains focused on meeting compliance expectations and sustaining growth across regulated markets.

With the Gambling Commission’s review expected to conclude in the coming months, industry observers are watching closely to see how the findings may impact Evolution’s UK operations and broader strategic outlook.

Source:

“Evolution eyes end-of-year Gambling Commission review update“, igamingbusiness.com, October 23, 2025.