Jul 16, 2026 | 4:02 am
Evolution has stated that its business strategy in the United Kingdom will remain unchanged after the company reached a regulatory settlement with the UK Gambling Commission (UKGC) earlier this week.
The live casino and gaming supplier was ordered to pay £4.75 million ($6.4 million) following a UKGC investigation that began in December 2024. The regulator found that Evolution content had been accessible through two operators on six unlicensed gambling websites.
Speaking after the release of the company’s second-quarter financial results, Evolution Chief Executive Officer Martin Carlesund said the settlement would not result in any operational changes in the UK market.
“I mean, we settled with them [UKGC],” Carlesund declared on the post-Q2 earnings call. “There are no changes in our way of doing things in the UK for a while, and we have no changes coming up.”
The comments came as Evolution reported mixed financial results for the second quarter, with growth in some regions offset by ongoing challenges elsewhere.
CEO Warns Against Higher Gambling Taxes
During the earnings discussion, Carlesund also addressed gambling taxation policies across Europe, arguing that higher tax rates can reduce participation in regulated markets.
His remarks referenced developments in the UK, where Remote Gaming Duty increased from 21% to 40% on 1 April.
“When it comes to the balance of the regulatory situation in any jurisdiction, not in particular to the UK, but as soon as you raise the tax to a certain limit, you will lose channelisation,” he continued.
“You have seen that in many [regions] such as the UK and the Netherlands, [where] the channelisation reached 50%. And that is not good.
So, we need to hope for a better balance in what regulators do. But it’s not for us to decide, and we just act on the rules that are there, and we’re very respectful to those rules, and we understand why they do them, and of course, raising the taxes is negative for the channelisation.”
Channelisation refers to the share of gambling activity taking place within licensed and regulated markets rather than through unlicensed operators.
Regional Growth Fails to Offset Broader Pressure
Although Europe has been a difficult market for Evolution in recent quarters, the company recorded a modest improvement during the second quarter. Revenue from the region increased 3.5% compared with the first quarter, ending a period of consecutive declines.
Carlesund described Europe as the company’s “main headache right now,” but the quarter showed signs of stabilization.
Latin America continued to deliver the strongest growth among Evolution’s operating regions. Revenue from the region increased 26.3% year-on-year, while North American revenue rose 9.5% compared with the same period in 2025.
However, performance in Asia weighed on overall results. Evolution reported that increased cybercrime activity in the region contributed to a 3.7% quarter-on-quarter revenue decline there.
The regional variations resulted in lower overall revenue and earnings for the company.
Evolution generated net revenue of €517.8 million during the second quarter, representing a 1.2% decline from the corresponding period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) also decreased, falling to €341 million from €345.3 million in the second quarter of 2025.
For the first six months of the year, net revenue reached €1.038 billion, down 1.4% from the prior-year period. EBITDA totaled €676.3 million, compared with €687.2 million a year earlier.
Despite those declines, Carlesund expressed satisfaction with the company's progress.
“Revenue and margin are moving in the right direction compared to the first quarter, cost control remains strong, cash flow is improving and we continue to expand in key markets while executing on our product roadmap,” Carlesund said in comments from the interim report.
“The road is almost never straight, but what matters is that we are moving forward. Some curves are harder than others, but they can also be fun. And the same goes for Evolution.”
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Galaxy Gaming Acquisition Faces Uncertain Future
Evolution also provided an update on its planned acquisition of Galaxy Gaming, a specialist table games and casino technology supplier.
The company announced the proposed transaction in July 2024, agreeing to acquire all outstanding shares of Galaxy Gaming in a deal valued at approximately $85 million.
The acquisition has encountered regulatory obstacles in the United States, and the closing period for the transaction expires on Friday. After that point, either party would have the option to terminate the agreement.
Carlesund emphasized that the outcome of the proposed acquisition would not materially affect Evolution’s broader business plans.
“Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition.
Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions.”
According to Evolution’s second-quarter presentation, Asia accounted for 37% of net revenue based on customers’ player IP addresses, followed by Europe at 33% and North America at 16%. The figures highlight the importance of international markets as the supplier works through regulatory developments, regional performance differences and ongoing strategic priorities.
Source:
“Evolution UK operations won’t change following Gambling Commission settlement“, igamingbusiness.com, July 17, 2026.