Evolution withdraws from the black market, but at what price?
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6 May 2025 •
Reading time: 2 minutes After years of dazzling growth, Swedish online gaming giant Evolution is making a major strategic shift: gradually withdrawing from unregulated markets. This decision is motivated by a desire to align with international standards and the expectations of regulators. But this transition, presented as a step towards greater responsibility, is also accompanied by significant financial sacrifices.
A strategic decision under regulatory pressure
Swedish online gaming giant Evolution recently announced its gradual withdrawal from unregulated markets. This decision comes against a backdrop of increased pressure from the regulatory authorities, particularly in the UK. In December 2024, the UK Gambling Commission (UKGC) opened an investigation into Evolution, following the discovery of its games on unlicensed sites. Although the UK only accounts for around 3% of Evolution’s revenues, the potential impact on the company’s reputation is significant.
Martin Carlesund, CEO of Evolution, said:
‘On top of what we have already done in the UK to meet regulatory requirements, we have taken proactive and self-initiated actions in February to ring-fence additional regulated markets in Europe.’
This declaration underlines Evolution’s commitment to comply with current regulations and to maintain transparent relations with the authorities.
Significant financial consequences
Evolution’s withdrawal from unregulated markets has led to a fall in its revenues. Asia, which accounts for around 40% of its sales, is largely made up of unregulated markets. The transition to fully regulated markets could therefore significantly affect the company’s financial performance.
Despite this downturn, Evolution is aiming for sustainable growth by concentrating on regulated markets. This strategy is designed to strengthen investor confidence and ensure long-term stability.
A European trend towards greater regulation
Evolution’s case is part of a wider trend in Europe, where several countries are tightening their regulations to combat the black market. In Germany, for example, a study revealed that almost 75% of online gambling revenues come from the black market. Similarly, in France, the Autorité Nationale des Jeux (ANJ) estimates that the illegal market could be worth up to €1.5 billion a year.
These alarming figures have led to calls for greater collaboration between the authorities, operators and suppliers to create a safer and more transparent gaming environment.