Evolution CEO calls Brazil's online betting ban a 'populist' move, says supplier is ready to return

Martin Carlesund, chief executive of live casino supplier Evolution, has strongly criticised Brazil's ban on online gaming, describing it as an unfortunate outcome of a populist agenda. He spoke during the company's third-quarter earnings call.

Brazil opened its regulated iGaming market in 2025, introducing rules for online casinos and online sports betting. The country quickly drew interest from international operators and suppliers, many of which obtained licences. Less than two years later, President Luiz Inácio Lula da Silva signed Provisional Measure 1,394, which prohibited online gaming and shut down the industry almost overnight.

The measure has not yet been signed into law, but Lula's re-election makes that outcome very likely. According to the source, the sudden closure hit smaller companies disproportionately, weakened investor confidence in the Brazilian market and left the wider industry dissatisfied.

Carlesund said the decision demolished a young regulatory framework only about a year and a half after its introduction. His remarks were made before Lula's election victory, when he suggested the vote could influence the future of online gaming in the country. With Lula winning, the ban is now expected to stay in place.

Evolution has closed its live casino studio in Brazil because of the ban, along with its office in the country. Carlesund said the team would be open to coming back if the market reopens, stating: "If Brazil reopens its market, we are ready to accelerate." Kambi officials made similar comments around the same time, expressing disappointment while saying they would consider returning if circumstances change.

Asked whether the absence of ring-fencing in Brazil could actually benefit Evolution, Carlesund rejected the idea and called the ban a total negative. He said the company's priority now is supporting its employees in the country.

Evolution has not changed its guidance for fiscal year 2026 despite the closure. Carlesund added that this is not the first time the company has had to deal with market volatility or uncertainty.