Evolution rules out UK changes after £4.75m settlement

Evolution has said it does not intend to alter its UK operations after agreeing a £4.75 million regulatory settlement with the Gambling Commission. The supplier’s CEO, Martin Carlesund, said its approach in Britain would remain unchanged despite the conclusion of a licence review that began in December 2024. His comments accompanied Evolution’s second-quarter results, which showed lower revenue and earnings amid persistent disruption in Asia, even as Europe returned to quarterly growth.

Evolution stands by its UK approach

The Gambling Commission's public statement said Evolution content appeared on six unlicensed websites accessible to consumers in Great Britain.

The regulator found that two operators working with Evolution had supplied its games through the websites. It said the supplier’s anti-money laundering risk assessment was not effective enough to identify the activity.

Large volumes of visits from consumers in Britain were recorded between December 2023 and November 2024. The investigation also identified shortcomings in Evolution’s policies and controls for preventing unlicensed access, alongside customer due diligence failures.

The Commission said the failings were serious enough for it to consider suspending Evolution’s licence. However, the supplier took immediate corrective action, and subsequent regulatory testing found no further cases of concern.

Speaking after the publication of Evolution’s Q2 results, Carlesund said the agreement would not change the company’s position in Britain.

“There are no changes in our way of doing things in the UK for a while, and we have no changes coming up.” — Martin Carlesund, CEO of Evolution

Tax rises could weaken channelisation

Carlesund also used the results call to warn that tax increases can damage channelisation in regulated gambling markets. The UK’s Remote Gaming Duty increased from 21% to 40% on 1 April 2026.

He argued that raising taxes beyond a certain point makes it harder for licensed operators to retain customers. Carlesund cited channelisation levels of around 50% in the UK and the Netherlands as examples of the risks facing regulated markets.

While stressing that Evolution would continue to follow the requirements in each jurisdiction, he called for regulators to find a better balance between taxation and keeping gambling activity within the licensed sector.

Asian disruption weighs on Q2 revenue

Evolution’s Q2 interim report showed net revenue declining 1.2% year on year to €517.8 million. EBITDA fell to €341.0 million from €345.3 million, although the EBITDA margin remained unchanged at 65.9%. Across the first half of 2026, net revenue dropped 1.4% to €1.0308 billion. EBITDA decreased to €676.3 million from €687.2 million during the equivalent period in 2025.

Asia remained Evolution’s most difficult region, recording a 3.7% quarter-on-quarter decline as increased cybercrime activity disrupted the business.

This weakness offset gains elsewhere. Europe returned to quarterly growth of 3.5%, while Latin America and North America delivered year-on-year increases of 26.3% and 9.5% respectively.

North America accounted for 16% of Q2 net revenue based on customer-player IP addresses. Asia remained the largest regional contributor at 37%, followed by Europe at 33%.

Despite the declines, Carlesund said he was satisfied with the quarter. He pointed to improving revenue and margins compared with Q1, continued cost control, stronger cash flow and expansion in key markets.

Evolution terminates Galaxy Gaming acquisition

Since publishing its Q2 results, Evolution has formally terminated its proposed acquisition of Galaxy Gaming.

The approximately $85 million deal was announced in July 2024 but did not receive all the required US regulatory approvals before the extended deadline of 17 July 2026.

Evolution issued its termination notice on 21 July and said it intended to pay Galaxy Gaming a termination fee of $5.23 million.

Despite the failed transaction, Evolution expects to continue its existing commercial relationship with the US table-games specialist. Carlesund had already played down the deal’s strategic importance, saying its outcome would have no material effect on Evolution’s business, US operations or long-term ambitions.