Evolution has issued a stark warning around waning channelisation rates in Europe, outlining that the ringfencing steps the supplier took almost a year ago have caused issues in terms of their bottom line. 

In total, Evolution reported a 5.9% decline in the quarter-on-quarter revenue for the first quarter of 2026. Chief Executive Officer Martin Carlesund lamented regulation volatility as he urged policymakers to be adaptive. 

Whilst the ringfencing measures implemented a year ago have had an impact on the firm’s European revenue, Carlesund underpinned that ‘it was the right thing to do. And in the world of perfect regulation, it would not have caused any issues’.

There is a lack of balance between protection and entertainment, according to Carlesund, who warned that players are continuing to have access to unregulated markets. 

Carlesund described Europe as Evolution’s ‘main headache’ as Evolution shifts its priority towards other regulated regions. 

Overall revenue dipped 1.5% to €513m, largely dragged down by European challenges. 

When it comes to Latin America, the firm was buoyant, describing it as having ‘great momentum’. 

He added: “In Brazil, we continue to perform well after regulation, which was about a year ago. We have launched a localised version of Crazy Time that is sure to attract a lot of new players in Brazil. LatAm truly is exciting. We’re in full expansion mode. In addition to Argentina, we continue to expand our presence in Brazil and in Colombia to fully leverage the big market potential.”

There is a similar trend across the firm in North America, where excitement is driven by potential growth prospects. This is somewhat fuelled by the pursuit of the Galaxy Gaming acquisition, with a deadline of 17 July for the deal to be completed. 
 

Evolution takes hard stance vs Playtech

Evolution is standing its ground in its ongoing legal battle with Playtech, after officially naming the company in its lawsuit earlier this month.

Playtech was cited by Evolution as a defendant alongside Calcagni & Kanefsky LLP and Black Cube, as well as Juda Engelmayer and others.

Carlesund stated during Evolution’s Q1 earnings call that the company is ready for its legal case against Playtech and is ready if it goes on for a couple of years.

“I don’t want the US litigation against a competitor to take focus from the results, but when a competitor sets aside all rules and deliberately tries to hurt us, we must take action to protect our shareholder value.

“Evolution works hard. We are methodic, we are patient and we are very disciplined. We believe in right and have a strong and good culture based on morale and solid ethics.”

 

 

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