Evolution prepared to reopen its studio in Brazil despite ban
Reopening hinges on Congress vote by 23 Nov. and rulings at the Supreme Federal Court
Key Takeaways
- Evolution can reopen its live casino studio in Brazil despite the ban introduced by Provisional Measure 1.394/2026.
- The studio closed on 5 October and any reopening depends on a Congressional vote before 23 November and court rulings at the Supreme Federal Court.
- Martin Carlesund described the closure as "extremely regrettable" and said: "If Brazil reopens its market, we are ready to accelerate."
- Evolution’s accumulated EBITDA margin is 65.7% versus a year-end target of 66%, and Q3 revenue was €526.1 million, up 3.7% year‑on‑year.
Evolution said it can reopen its live casino studio in Brazil despite the betting ban introduced in October 2026. Martin Carlesund, chief executive of Evolution, called the closure "extremely regrettable" and criticised the abrupt change to Brazil’s new regulatory framework. The studio was closed on 5 October following the introduction of Provisional Measure 1.394/2026, which bans online sports betting and casino gaming in Brazil.
Political and judicial timelines
The effective reopening will depend on decisions by Congress and the courts. Luiz Inácio Lula da Silva won the presidential runoff on 25 October with 51.76% of the vote against Flávio Bolsonaro, and has vowed to uphold the ban. Congress has until 23 November to vote on the provisional measure, while Supreme Federal Court Justice Luiz Fux must rule on the lawsuits filed by the associations ANJL and IBJR.
Operational and financial impact
Carlesund said the closure will make the fourth quarter "very busy" for the company, but he declined to give forecasts for specific changes. He told analysts: "If Brazil reopens its market, we are ready to accelerate." Evolution is keeping its year-end margin target despite the uncertainty: the accumulated EBITDA margin is 65.7% versus a target of 66%.
Third-quarter results
The company reported revenue of €526.1 million in the third quarter, an increase of 3.7% year-on-year, and adjusted EBITA of €345.9 million. Remote gaming revenue grew 10.1%, and live casino revenue rose 2.6%.
Short-term outlook
Evolution would not confirm whether revenue from Brazil will fall to zero in Q4 and explained that its activity is not reported by country. Congress’s decision before 23 November and the STF rulings will be decisive for any potential reopening.
Frequently Asked Questions
What prompted Evolution to close its Brazil studio?
The closure followed the introduction of Provisional Measure 1.394/2026 on 5 October, which bans online sports betting and casino gaming in Brazil.
Who will decide whether Evolution can reopen the studio?
Reopening depends on a vote in the National Congress before 23 November and on judicial rulings at the Supreme Federal Court, where Justice Luiz Fux is handling lawsuits from ANJL and IBJR.
How does the closure affect Evolution’s financial outlook?
Evolution maintains its year‑end margin target; its accumulated EBITDA margin is 65.7% against a 66% target, and it reported Q3 revenue of €526.1 million, up 3.7% year‑on‑year.
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About the author
Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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