Evolution has closed its live casino studio in Brazil following the country’s decision to ban regulated online sports betting and casino gambling. CEO Martin Carlesund has criticised the move as a politically driven reversal of an established regulatory framework, while confirming that the company could reopen its Brazilian operation at short notice if the ban is reversed.
Speaking during Evolution’s third-quarter 2026 earnings call on 23 October, Carlesund described the closure as “highly unfortunate”. He argued that the decision demonstrated how a political agenda could overturn a regulatory framework that had been in place for only 18 months.
The studio closed on 5 October, after the reporting period covered by the company’s latest results.
Lula’s Re-election Adds to Uncertainty
Brazil’s President Luiz Inácio Lula da Silva won re-election on 25 October, defeating Flávio Bolsonaro with 51.76% of valid votes. Lula had signed Provisional Measure 1.394/2026 on 25 September, introducing the ban on online sports betting and casino gambling, and has pledged to maintain it.
Congress must vote on the measure by 23 November. Meanwhile, Supreme Court Justice Luiz Fux is expected to rule on legal challenges brought by industry associations ANJL and IBJR.
Evolution is therefore waiting for greater clarity on the legal and political situation before deciding whether to resume its Brazilian operations.
Latin American Growth Continues
Despite the Brazilian shutdown, Evolution reported strong growth across Latin America. Regional revenue increased by 23.1% year-on-year, based on the company’s estimates of player locations using IP data. The figure did not include the effects of the Brazilian ban.
Carlesund said the group was ready to accelerate its expansion if Brazil reopened. Evolution is also pursuing opportunities in Colombia and Argentina, where it already operates two studios.
The company stated that Brazil represented well below half of its Latin American revenue, suggesting that the wider region could help offset some of the disruption.
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Financial Outlook Remains Unchanged
Evolution reported third-quarter revenue of €526.1 million, up 3.7% year-on-year. Adjusted EBITA reached €345.9 million, with a margin of 65.8%. Random number generator (RNG) revenue rose by 10.1%, while live casino revenue increased by 2.6%.
Despite questions from analysts about the potential loss of Brazilian revenue in the fourth quarter, Carlesund declined to quantify the impact or provide a detailed estimate of potential cost reductions.
The company maintained its full-year margin guidance of 66%, compared with a year-to-date EBITDA margin of 65.7%.
Evolution has made clear that it is prepared to respond quickly if conditions change. However, the immediate outlook for its Brazilian operation remains uncertain while the ban and related legal challenges work their way through the country’s political and judicial systems.
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