Evolution Issues Warning Over Declining European Channelisation Rates

(AsiaGameHub) –   Evolution has raised a serious concern regarding decreasing channelisation rates across Europe, noting that the ringfencing measures implemented by the supplier nearly a year ago have negatively impacted their financial performance.

Evolution recorded a 5.9% drop in quarter-on-quarter revenue for the first quarter of 2026. Chief Executive Officer Martin Carlesund expressed frustration over regulatory instability and called on policymakers to be more flexible.

Although the ringfencing actions introduced a year ago have influenced the company’s European earnings, Carlesund emphasized that “it was the right thing to do. And in the world of perfect regulation, it would not have caused any issues”.

Carlesund argued that there is an imbalance between player protection and entertainment, noting that gamblers are still finding ways to access unregulated markets.

Labeling Europe as Evolution’s “main headache,” Carlesund noted that the company is redirecting its focus toward other regulated jurisdictions.

Total revenue for the company fell by 1.5% to €513m, a decrease primarily driven by difficulties in the European market.

The firm expressed optimism regarding Latin America, describing the region as possessing “great momentum”.

He commented: “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.”

A similar positive sentiment is felt by the firm in North America, where there is enthusiasm about future growth possibilities. This is partly driven by the ongoing attempt to acquire Galaxy Gaming, with a deadline of 17 July set for the deal’s finalization.

Evolution maintains firm position against Playtech

Evolution is holding its position in the continuing legal dispute with Playtech, having formally named the company in its lawsuit earlier this month.

Evolution listed Playtech as a defendant, as well as Calcagni & Kanefsky LLP and Black Cube, along with Juda Engelmayer and several others.

During Evolution’s Q1 earnings call, Carlesund affirmed that the company is prepared for its legal fight with Playtech, even if the process extends for a few 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.

“They have stated that they stand behind the defamatory report, but please remember that they paid enormous amounts of money during four years to not be exposed as the commissioner of that said report. Please also remember that the report was based on a success fee structure, where the report producer was being paid based on how severely they could hurt 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.”

When questioned about the timeline for the lawsuit, Carlesund replied: “We have had an opponent in this legal debacle that has been ongoing for four years. We have systematically been progressing and winning in court, that’s taken four years.

“It will take a very long time and the opponent that we have is also taking a lot of measures to delay everything, which we have seen in the past and we expect that in the future as well. So think about years, probably many years.”

Reacting to being named in the lawsuit earlier this month, Playtech stated that it intends to “defend itself vigorously” against the allegations made by Evolution.