Evolution Closes Brazil Studio, Criticizes Ban

Game provider Evolution closed its live casino studio in Brazil on October 5. CEO Martin Carlesund called the closure "quite unfortunate" in the company's third quarter earnings call on October 23. Carlesund argued that after a year of regulatory framework, a populist agenda has been able to disrupt that framework.

In Brazil, President Luiz Inácio Lula da Silva signed an interim measure on September 25 introducing a ban on online sports betting and casino games. Lula won the election with 51.76 percent of the vote and said he would maintain the ban. Congress has until November 23 to vote on the measure. Supreme Court justice Luiz Fux is also expected to rule on lawsuits filed by industry associations after the election.

Carlesund said the Brazilian ban has not affected regional revenue, with Latin American revenue rising 23.1 percent in the quarter. The company also noted that Brazil's share of regional revenue is well below half. Carlesund said they are ready to accelerate if the market opens.

The company said it plans to expand in Colombia and has gained momentum in Argentina with two studios. It said the impact on other Portuguese-speaking markets served from the Brazil studio will be limited for now.