Evolution Gaming reported Q1 net revenue of €513 million, reflecting a 1.5% year-on-year decline, as weakening European performance and falling channelisation rates weighed on overall growth. Group CEO Martin Carlesund noted that regional results were “somewhat mixed,” with Europe currently underperforming compared to other key markets.
Regulated Revenue Stands at 48% Amid Rising Unregulated Access
Based on customer IP analysis, Evolution estimated that approximately 48% of its Q1 revenue originated from regulated markets. The company attributed the limited growth in regulated share to structural challenges in Europe, where it believes regulatory frameworks are not effectively balancing player protection with entertainment demand.
Carlesund warned that these conditions are driving players toward unregulated operators, reducing channelisation and ultimately weakening both the regulated ecosystem and consumer protections.
Europe Under Pressure as Key Markets Lag
The company identified the UK, Netherlands, and Sweden as key areas of concern, citing weaker channelisation trends in these jurisdictions. Carlesund described Europe as the group’s “main headache,” pointing to ongoing regulatory friction and declining player migration to licensed operators.
In response, Evolution has implemented ring-fencing measures across its European operations to ensure compliance and avoid exposure to illegal markets, particularly following scrutiny from the UK Gambling Commission.
Americas and LatAm Drive Growth Momentum
While Europe struggles, both North America and Latin America continued to deliver strong performance. Carlesund highlighted “great momentum” in LatAm and steady expansion in North America, with both regions achieving record-high revenues during the quarter.
North America in particular saw improved growth compared to the previous quarter, with underlying US dollar performance showing approximately 21% year-on-year growth despite softer euro-denominated reporting results.
Strategic Pivot Toward Americas Expansion
Evolution is increasingly shifting its strategic focus toward the Americas, where it sees stronger long-term growth potential. The company has launched several new titles in recent months and expanded its footprint through acquisitions, including a development studio in Argentina.
Carlesund stated that both the US and LatAm are expected to receive the majority of investment in 2026, describing the regions as being in the “early stages” of long-term market development.
Emerging Growth in Africa and Long-Term European Outlook
Beyond core markets, Evolution also noted continued expansion in Africa, albeit from a smaller base. The company highlighted strong demand for new game releases, with recent titles such as Red Baron outperforming expectations and live casino offerings gaining traction.
Despite short-term challenges, Carlesund maintained a positive long-term outlook for Europe, suggesting that regulatory frameworks will eventually adapt to better support channelisation and bring more players back into regulated markets over time.
