Evolution CEO Martin Carlesund has said regulators across Europe shouldn’t ignore players who end up betting with unlicensed operators, as he slammed tax hikes across the continent as a growth driver for the illegal sector.
The supplier recorded revenue of €513m (£445.6m) for Q1 2026, a figure which represents a decline of 1.5% year on year.
Decreasing channelisation across Europe was cited as a contributory factor, which the company attested was “bad for the impacted countries, the players and the industry as such”.
Speaking on Evolution’s Q1 analyst call yesterday, 22 April, Carlesund said increasing tax rates will only exacerbate the problem – referencing the UK’s recent remote gaming duty hike to 40% earlier this month – and that regulators need to protect the welfare of all players.
Within the last 12 months, France, Romania and the Netherlands have all implemented tax increase. In the UK, general betting duty will jump from 15% to 25% in 2027.
He remarked: “Everyone in the online gaming sector, if you’re an operator, a supplier or something else, would know a tax rate of around 25%, 20%, 15% is great. [But] as soon as you hit the 30% bracket, it starts to be really difficult and you open up for lowering channelisation and unregulated play.
“When you put taxes ata 40% level and add in a lot of other hurdles, you make it so difficult and not nice for the player experience. Then, players, in quite large amounts, seek gameplay outside [the regulated sector].
“Right now, regulators talk only about what they do as repressive measures; they don’t talk about what happens to players outside of the regulated remit. I think that needs to come into focus and you need to find that balance. I look forward to seeing that balance come back.”
When asked about any updates regarding the Gambling Commission’s ongoing investigation into the supplier, Carlesund admitted he had “no idea when it will be resolved”.
The regulator first announced a review into the supplier’s licence in December 2024 over reports it had been supplying its content to black market operators.
At the firm’s Q3 2025 earnings call in October, Carlesund said he expected the investigation to have closed by the end of 2025.
Elsewhere, in relation to any pricing pressures experienced by Evolution as a result of increased competition in the market, the CEO remained confident in the firm’s ability to stave off its competitors.
He said: “We’re experiencing that all along. I’ve been in the company for quite a long time.
“I think that the only difference is that there are different names related to the competitors. Sometimes during one period it’s one name, and the second period it’s another name, and so on.
“The pricing pressure from the competition not able to cover the gap that we increase all along with the innovation and the game shows we do is always constant. It’s always there.”
Earlier this month, Evolution requested permission to add Playtech as a defendant in its defamation lawsuit against Black Cube.
The case against Black Cube stems from the Stockholm-listed supplier alleging Playtech commissioned an investigation by Israeli intelligence firm in 2021 that included “highly inflammatory and knowingly false claims” about Evolution.
The post Evolution CEO: Tax hikes will grow black market and GC investigation ongoing first appeared on EGR Intel.
Martin Carlesund says unprotected customers “need to come into focus”, as he insists increased taxes risk lowering channelisation rates across Europe
The post Evolution CEO: Tax hikes will grow black market and GC investigation ongoing first appeared on EGR Intel.