Evolution settles UKGC probe for £4.75m, Galaxy deal lapses as CEO rules out UK strategy shift

Evolution Gaming has concluded an 18-month review by the UK Gambling Commission with a £4.75 million regulatory settlement, after the watchdog found that the supplier’s content was accessible to British consumers via six unlicensed websites run by two operators.

The settlement, announced on Wednesday, stems from a probe launched in December 2024. Evolution stated that the unlicensed operators had “actively evaded restrictions in place at the time” and that no broader pattern of unauthorized access in the UK was uncovered. Commercial ties with the two operators were terminated immediately upon discovery, and the company said it has since implemented ring-fencing measures across Europe to prevent further leakage.

UK operations unchanged, CEO warns on tax

Commenting on the settlement during Evolution’s Q2 2026 earnings call on Friday, CEO Martin Carlesund made clear that the agreement would not alter the supplier’s approach in Britain. “There are no changes in our way of doing things in the UK for a while, and we have no changes coming up,” he said.

Carlesund used the occasion to criticise rising gambling taxes, noting that the UK’s Remote Gaming Duty nearly doubled to 40% in April. He argued that tax hikes risk driving players toward unlicensed operators, citing examples in the UK and Netherlands where channelisation fell to around 50%. “We need to hope for a better balance in what regulators do,” he added.

Q2 performance mixed, Europe returns to growth

While Evolution’s group net revenue slipped 1.2% year-on-year to €517.8 million in the second quarter, Europe posted a 3.5% sequential revenue increase—a turnaround Carlesund described as moving “in the right direction” after several quarters of decline. However, Asia saw a 3.7% quarter-on-quarter drop due to heightened cybercrime activity. Latin America remained the standout region with 26.3% annual growth, and North America revenue rose 9.5%. EBITDA fell to €341 million from €345.3 million in the same period last year.

Galaxy Gaming deal effectively stalls

Separately, the long-running $85 million acquisition of specialist table games provider Galaxy Gaming has failed to close by the 17 July 2026 deadline, with both parties now evaluating next steps. The deadline, previously extended in November 2025, passed without the necessary regulatory approvals being secured.

Carlesund downplayed the deal’s significance, stating that “due to its size, the transaction is not significant for Evolution” and that the outcome has no material impact on its existing business or US operations. Galaxy Gaming President and CEO Matt Reback, however, said his company remains “excited about the trajectory” and continues to expand its product range and partnerships. Neither party has terminated the agreement, leaving the door open for a further extension.