Evolution has warned that channelisation rates are falling in parts of Europe, with the company saying more players are moving outside the regulated market. In its first-quarter 2026 report, chief executive Martin Carlesund said lower channelisation in Europe is harming players, regulated operators and public revenue.
The warning came alongside weaker regional performance. Evolution reported first-quarter net revenue of €513.0 million, down 1.5% year on year, while EBITDA fell 1.9% to €335.3 million. The company identified Europe as its weakest region in the quarter.
Europe was the weakest part of the quarter
Evolution said tighter rules in some countries are pushing more gambling activity into the black market. At the same time, the company said its own ring-fencing measures are still weighing on results because they are designed to keep Evolution content away from unregulated operators.
That combination has made Europe more difficult for the company. While other regions continued to support growth, Europe remained under pressure from both regulation and weaker channelisation.
Channelisation is becoming a bigger policy issue
Channelisation refers to the share of gambling that stays inside the licensed market instead of moving to offshore or illegal sites. Evolution’s comments add to a wider debate in Europe over whether tougher rules are protecting players or pushing more of them outside the regulated system.
During the earnings discussion, Evolution pointed to countries such as the UK and the Netherlands as examples where channelisation has been falling. The company also said it remains difficult to measure the full size of the unregulated market.
Ring-fencing is still affecting revenue
Evolution said its ring-fencing strategy is the right long-term approach, even though it is costing revenue in the short term. The company has continued to argue that supplying only regulated channels is the better path, despite the immediate financial impact.
That issue is especially visible in Europe, where the company is dealing with both lower channelisation and the cost of limiting access to unregulated distribution. The result is a region where regulatory pressure and commercial pressure are now hitting at the same time.
Europe’s share of group revenue also moved lower
Evolution’s regional breakdown showed Europe accounted for 34% of operating revenue in the first quarter, down from 37% a year earlier. By contrast, North America rose to 16% from 13%, while Latin America increased to 10% from 9%.
That shift shows where the business is getting stronger and where it is losing momentum. Europe is still Evolution’s largest region, but its weight in the group’s revenue mix is starting to shrink as pressure in regulated markets builds.
