Evolution Gaming: Profit up in Q2 2026 Despite Revenue Drop

Online gambling provider Evolution Gaming, known for its live casino offerings and RNG games, has published its financial results for the second quarter of 2026. What stands out is an increase in profit and earnings per share, despite a slight decrease in net revenues and EBITDA. This development indicates an interesting trend in the gambling industry, where efficiency and cost control play an increasingly important role.

The global markets present a mixed picture for Evolution, with strong growth in Latin America and North America, but also ongoing challenges in Europe and a decline in Asia. This underscores the need for flexible strategies to succeed in a constantly evolving regulated environment.

Numbers and facts

In the second quarter of 2026, Evolution's net revenues slightly decreased by 1.2 percent to EUR 517.8 million ($591.9 million) compared to the previous year. EBITDA also decreased to EUR 341 million ($389.8 million). Despite these declines, the company managed to increase its profit. For the first quarter, profit was EUR 251.4 million ($287.4 million), an improvement from Q1 2025. Earnings per share increased from EUR 1.22 in the prior-year period to EUR 1.27 ($1.45). For the year-to-date, profits slightly increased to EUR 503.4 million ($575.4 million). Year-to-date earnings per share also increased, reaching EUR 2.54.

Regionally, there were significant differences: Latin America recorded strong growth of 26.3 percent. North America grew by 9.5 percent. Europe showed quarter-on-quarter growth of 3.5 percent for the first time in several quarters. Africa remained a volatile market but showed positive development with quarter-on-quarter growth of 14.2 percent. Asia was the only outlier with a decline of 3.7 percent in Q2. In parallel with the quarterly figures, Evolution settled a claim with the UK Gambling Commission for $6.4 million (approx. £4.75 million) related to the availability of content on unlicensed websites. The company also announced that the agreed closing period for its proposed acquisition of Galaxy Gaming has expired, meaning either party can now choose to terminate the agreement.

Background

Martin Carlesund, CEO of Evolution Gaming, expressed satisfaction with the second-quarter results. He emphasized that the company's path is rarely straight, but constant progress is what matters most. > "The road is almost never straight, but what matters is that we are moving forward. Some curves are harder than others, but they can also be fun. And the same goes for Evolution." - Martin Carlesund, CEO, Evolution

Carlesund sees Europe as a particular 'headache' due to ongoing challenges. He criticized the "suboptimal channelization rates" in certain European markets. He argued that excessively high gambling taxes, such as the increase in the UK's Remote Gaming Duty from 21 percent to 40 percent, jeopardize channelization. This can lead to players resorting to unregulated offers, which is undesirable for both players and providers. Regulus Partners already analyzed in February that Evolution was "failing to execute" its RNG strategy.

The planned acquisition of Galaxy Gaming for approximately $85 million also appears to be stalled. Although Evolution has invested significant time and resources in managing the administration required to close the acquisition, the deal is no longer considered material for the company. Carlesund also clarified that a failure to acquire Galaxy Gaming would have no "material impact on our existing business, our US operations, or our long-term ambitions." The RNG segment, which includes NetEnt and Red Tiger, showed only 1.4 percent growth in the second quarter, reaching EUR 70.3 million, while the live casino business increased by 17.8 percent to EUR 438.1 million.

Why it matters for German players

For German players, these global developments are only indirectly relevant. In Germany, the State Treaty on Gambling (GlüStV 2021) has been in effect since July 1, 2021. This treaty has heavily regulated the online gambling market and includes specific framework conditions that providers like Evolution Gaming must comply with if they want to legally offer their products to players in Germany.

German players can legally only gamble in online casinos that hold a license from the Gemeinsame Glücksspielbehörde der Länder (GGL). These casinos are listed on the official GGL whitelist. Strict rules apply to these providers: an insert limit of one euro per spin for online slot machines is part of it, as is a monthly deposit limit of 1,000 euros, which is monitored by the central LUGAS system. Evolution Gaming offers some of its titles in Germany through various GGL-licensed portals. Especially the popular live casino games are available to German players. It is important to always check the official GGL whitelist to ensure that you are playing on a legal and secure platform.

What it means for GGL-licensed casinos

The challenges Evolution Gaming faces in regulated markets like Europe are also reflected in the conditions for GGL-licensed casinos. The strict licensing requirements, especially the deposit and betting limits, can lead to a lower "channelization rate." This means that some players may resort to unregulated offers that do not have these restrictions. This is precisely the scenario Martin Carlesund describes in his criticism of excessively high tax rates, as it ultimately harms player protection.

On the other hand, Evolution's stable profits despite declining revenues also offer a certain degree of security. It shows that the company is able to adapt to changing market conditions and remain profitable. For GGL-licensed casinos offering Evolution games, this means a reliable partnership with a financially sound and innovative provider. Innovations such as new live tables or slot machines are of great importance for licensed casinos in Germany to remain attractive in competition and to attract players to the regulated environment.