Evolution CEO Martin Carlesund described Brazil’s abrupt ban on licensed betting as a “total negative” for the industry, as the supplier giant awaits clarity on how the situation will progress.
In late September, Brazil President Luiz Inácio Lula da Silva announced a ban on gambling in Brazil, despite less than two years having passed since the regulated online market launched.
As a result, Evolution has temporarily closed its studio in Brazil, which it launched in São Paulo last year.
Speaking on Evolution’s post-Q3 earnings call, Carlesund said the uncertainty in Brazil was particularly troubling considering how little time had passed since the licensed market went live.
“I think that everyone is flabbergasted about the situation in Brazil,” he told analysts. “It’s a total negative for anyone in this business, that it happens in this way.
He added: “It’s highly unfortunate that a populist agenda can overthrow a regulatory framework that has only been in place for a year and a half.”
Evolution ‘ready to accelerate’ in Brazil
The Brazilian betting sector is awaiting a ruling from the Supreme Federal Court on whether Lula’s ban was unconstitutional.
Carlesund said the closed studio was ready to reopen on short notice, with Evolution “ready to accelerate” in Brazil if that happens.
Asked whether Evolution’s Brazil revenue would go down to zero if the ban remained in place, Carlesund responded: “The country as such is not ring fenced, and we will see what will happen with the players.
“The only comment I had is that we have to monitor the situation in Brazil. No one really knows what will happen. It could be reopened again.”
Despite the uncertainty, Evolution maintained its full-year margin guidance.
Responding to an analyst who asked whether the group could meet its profitability targets even if Brazil generated no revenue during Q4, Carlesund said the company’s outlook remained unchanged.
Evolution’s LatAm operations reported year-on-year growth of 23.1% in Q3, a figure that did not reflect the effects of Brazil’s suspension, which came into force in early October.
Evolution ‘should do better’ in Europe
Evolution’s Q3 net revenue rose 3.7% year-on-year to €526.1 million ($585.2 million), while adjusted EBITDA also edged up by 2.7% to €345.9 million.
Q3 marked the first three-month period since 2024 in which all of Evolution’s regions reported quarter-on-quarter growth.
But while there was significant year-on-year growth in LatAm (23.1%), Africa (23.7%) and North America (13.6%), Europe grew just 0.4% quarter-on-quarter, and in fact declined 4.7% year-on-year.
Carlesund described Evolution’s European performance as “not exciting”, stating the company “should do better” in the region.
“No matter the regulatory situation or low channelisation rates, we should do better,” he declared.
Carlesund suggested that regulatory changes and taxation across European markets were distracting the company from its core business.
“I think that you will see, that if we can just have a couple of stable quarters in Europe where we focus on actually working with our customers and get back from all of these external parameters and regulatory changes and taxes going here or there and whatever, even with the situation we have, if it would be stable, we will see to that that we will do better,” he said.
Asia cybercrime issues still prevalent
Last year, Evolution highlighted it was facing challenges from cyberattacks targeting its distribution in Asia.
At the time, Carlesund said: “Someone is stealing our products.”
Updating on the situation after Evolution’s Q3 2026 results, Carlesund said the issue was unresolved.
“Asia increased by 0.8% quarter-on-quarter and by 1.6% year-on-year,” he said. It’s one small step forward compared to Q2, but you all know that there is no quick solution to these cybercrime issues that we continue to see.
Carleusnd that his company is taking long-term steps to protect it’s product.
“I think that we have traction exactly on these technical endeavours that we do, and I’m happy with them. Exactly how that plays out, there is probably volatility as we go forward, but we are happy where we are technically. We are playing the long game, and I am confident that it will pay off.”
Declines to comment on Playtech dispute
Evolution is currently engaged in a drawn-out legal battle with Playtech, after Playtech commissioned intelligence firm Black Cube to investigate Evolution’s activities in 2020.
The resulting dossier alleged that Evolution supplied games in prohibited and sanctioned markets. Evolution later sued Black Cube and has sought to hold Playtech accountable in the related defamation case.
Asked about the situation, Carlesund responded: “We are in a full lawsuit with them, and that will continue as we go forward. We’re doing everything we can, and now there’s new steps taken every day.”