Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioEvolution CEO Martin Carlesund says the company will continue offering sweepstakes casino products only where there are “no regulatory problems or any legal problems.” The announcement reflects a cautious, state-by-state approach as US enforcement tightens. At the same time, the company is confronting legal fallout from a defamation campaign linked to rival Playtech.
Prudent Approach to US Sweepstakes
During the Q3 2025 earnings call on Oct. 23, Carlesund told investors that Evolution’s goal is “to stay ahead of regulatory developments while maximizing business potential.”
He said the company offers content to sweepstakes casinos “in states where it is not prohibited or where there are no legal uncertainties.” He added that when local officials reinterpret the law, “we adapt, whether we agree with the interpretation or not.”
Carlesung expanded on that reasoning: “Sweepstakes is a popular product in the US, and we offer it in states where it’s not prohibited or in any way under regulatory scrutiny.”
“In the quarter, a city attorney in Los Angeles made a personal interpretation of California law, and as our strategy is that we don’t offer sweepstakes where there are regulatory uncertainties, we pulled it from the market.”
He added that if any regulator or authority “would send a letter … stating ‘don’t do it here,’ we would immediately go away.”
Carlesund’s tone suggests Evolution aims to maintain access to the US sweepstakes casino sector. However, it plans to steer clear of the gray-area disputes now drawing federal and state scrutiny.
The remarks follow Evolution’s decision to stop supplying games to Stake.us in California. That resulted from Los Angeles City Attorney Hydee Feldstein Soto filing a civil enforcement lawsuit against Stake and some suppliers. That included Evolution and its subsidiaries.
However, CasinoBeats testing found Evolution’s live dealer games are still accessible in California via a VPN. That suggests the company has yet to implement the strategy fully.
Playtech Fiasco & Legal Fallout
Carlesund used the call to denounce the defamation campaign traced by Evolution to rival Playtech.
“When someone behaves in that way, hides for four years doing this type of action, that [with] Black Cube using Juda as a PR company, it takes a bit away from my belief in humanity and fair play and in ethics and moral[s],” he said. He added, “Exactly how we will assess the damages, that’s a later question, but it’s a severe amount.”
Only days before the Q3 earnings call, Evolution learned through discovery that Playtech was the mystery entity that paid the intelligence firm Black Cube to produce a 2021 smear report.
In the Q3 earnings CEO comments, Carlesund addressed the situation: “At Evolution, we will always go to all lengths to protect our company, our brand, our colleagues, and our shareholders.”
“Whether it is our efforts to fight cyber criminals in Asia, the resolution of the Georgian strike, or the action we are taking against Playtech and their associates who sought to harm Evolution, we will deploy whatever time, effort, and money necessary to defend our firm and its exciting future.”
The CEO confirmed that Evolution has changed the defendant’s name to Playtech in the defamation litigation. The litigation is proceeding in New Jersey, with the expectation to extend through 2026.
The Playtech reveal followed Black Cube’s leaked secret recordings that allege Evolution executives, including Carlesund, had long known that its content is available in unregulated and sanctioned jurisdictions, such as Syria, Iran, and Sudan.
Q3 Results Show Margin Control Amid Asian Volatility
Evolution reported net revenue of €507.1 million for the quarter ending Sept. 30 (-2.4% year-on-year) and adjusted EBITDA of €336.9 million, a 66.4% margin. Profit for the period declined to €252.3 million (-23%)
Carlesund acknowledged that “we have not been satisfied with the growth so far this year.” Still, performance improved in Europe, North America, and Latin America.
In contrast to the Q2 2025 results, the main drag in Q3 came from Asia. There, the company “over-extended our countermeasures” against cybercrime, hurting revenue.
“Asia is still very far from satisfactory,” he said. He cited volatility in newly regulated markets such as the Philippines and “signs of movement toward regulation” in India.
The CEO nonetheless called Evolution’s new studio in the Philippines “off to a great start.” He emphasized the company’s commitment to the region despite early turbulence surrounding its partner in the country.
Meanwhile, Europe returned to quarter-on-quarter growth (1.1%, down 6.5% YoY) and North America maintained double-digit annual gains (14.5% YoY, flat quarter-on-quarter). Also, Latin America rebounded as Brazil’s regulatory rollout stabilized (up 5.8% quarter-on-quarter and 6.4% YoY).
For the first time, RNG (slots) outperformed Live Casino in terms of growth. Nolimit City’s strong quarter and the launch of the Sneaky Slots brand were the primary drivers of the results.
Evolution also relaunched its Ezugi brand in the US, marking “an important step in the North American growth strategy.” Cost discipline lifted margins back into the company’s targeted 66–68% range. Meanwhile, the firm repurchased €187 million in shares during the quarter.
