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Developer of live dealer games Evolution has come under serious pressure following…
Developer of live dealer games Evolution has come under serious pressure following an investigation by the British Gambling Commission. The problem: the studio’s games were available in England through operators without a local licence. The company reacted swiftly and tried to resolve the situation. Now, however, more serious consequences have emerged: Evolution has apparently restructured its offerings in various regulated markets in Europe and is facing a significant drop in revenue.
The best online casinos with Evolution provider:
The problem with the English market was resolved in short order. Official statement:
“Evolution takes into account the findings of the Commission’s inspection. We are committed to maintaining a licensed UK market and preventing unlicensed traffic.” In addition, “Games on identified websites that do not have a Commission licence have become unavailable in the UK.”
Indeed, further steps have recently been announced with the publication of the company’s first quarter 2025 earnings report. According to the report, ‘proactive and independent measures have been taken to isolate regulated markets in Europe,’ which the international industry press interpreted as a kind of withdrawal from the black market. Revenues appear to have fallen significantly.
The first few months of the year have not been easy for Evolution Gaming, at least at first glance. CEO Martin Carlesund admits in the latest quarterly report that the measures taken to ensure the safety of regulated markets have not gone unnoticed.
A larger initiative is now underway in Europe: ‘In addition to the measures already implemented in the UK to meet regulatory requirements, in February we took active independent steps to secure other regulated markets in Europe,’ Carlesund said.
It goes on to say, “During the quarter, we engaged in constructive dialogue with all major European regulators and are supporting them where possible.”
These measures will not be without consequences. Especially in markets with low channel levels, i.e. where there is little or no acceptance of legal offers, significant revenue reductions will be recorded.
Overall, Evolution reports a profit of around €254 million for the first quarter of 2025, down 5.4 per cent on the same quarter of the previous year. Nevertheless, the CEO remains confident: “We expect the second half of the year to be more successful.” The annual figure thus remains on target: the expected EBITDA margin is 66-68% (EBITDA stands for ‘earnings before interest, taxes, depreciation and amortisation).
Despite the temporary difficulties, Evolution’s overall outlook remains positive. With revenues of around 520 million euros and an EBITDA margin of 65.6 per cent, the company remains financially sound. Annual growth is at least 3.9 per cent and even 6.1 per cent at constant exchange rates. The company thus appears poised for stabilisation in the second half of the year.
What exactly is behind the “proactive measures to secure regulated markets in Europe” remains unclear. Evolution has shown emphasised restraint in its current quarterly report, leaving room for speculation. Have “lousy sheep” been excluded from the partner network? Were regions with weak regulation excluded? Or was it simply a call for operators to comply with the rules of their target markets?
Another important question concerns the overall impact of the approach. What does this mean for competitors? Can other developers follow Evolution’s example?
Evolution itself is of a similar opinion. CEO Martin Carlesund emphasises that redirecting players to legal markets is not the (exclusive) task of the company!
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