Evolution shares fall after Brazil announces near-total online gambling ban

Shares in Evolution fell on Monday after Brazil announced a near-total ban on online gambling, according to a report. The Swedish supplier's stock was down 4.4% during the session, and at the time of writing stood 2.87% below Friday's closing price. Brazil announced the nationwide ban on Saturday.

Brazil's president signed a provisional measure banning almost the entire regulated market from 6 October 2026. The measure covers online casino games and also bans sports betting. The ban comes less than two years after Brazil launched its regulated online gambling market.

The government cites problematic gambling participation, household debt and the amount of money Brazilians spend on online gambling. Research from the University of São Paulo found that online gambling raises the likelihood of risky gambling behaviour almost fourfold compared with traditional forms, with 66.7% of Brazilian online gamblers showing some form of risky behaviour. A separate report by Brazil's central bank, cited by the study, found that the country's 24 million online gamblers generate gross gaming revenue of more than €500m a month for online gambling companies.

Latin America, and Brazil in particular, has been a key growth market for Evolution, according to its quarterly and annual reports. The supplier opened a physical studio in Brazil in 2025 and launched games tailored to the Brazilian market. In its latest annual report the management explicitly welcomed Brazil's regulatory legislation.

In its most recent financial report, Evolution reported second-quarter revenue growth of 26.3% in Latin America, to €47.5m, up from €37.6m in the same period a year earlier. The region accounted for 13% of Evolution's total revenue.