Evolution criticizes Brazil’s betting ban after closing local live casino studio

Evolution CEO Martin Carlesund called Brazil’s ban on online gaming a “populist” move after the company shut its local live casino studio. For PSPs, acquiring teams, and gaming suppliers, the key point is simple: Brazil went from newly regulated to closed in a very short time, and that kind of policy swing changes how you price, underwrite, and commit capital to a market.

1. Brazil opened its iGaming market in 2025, introducing regulation for online casinos and online sports betting. The market immediately drew international operators and suppliers, with many securing licenses in what was described as one of the biggest markets in the world.
2. Less than two years after launch, President Luiz Inácio Lula da Silva signed Provisional Measure 1,394, which prohibited online gaming and effectively shut the market down overnight. The measure has not yet been signed into law, but Lula’s recent reelection makes that look very likely.
3. During Evolution’s Q3 earnings call, Martin Carlesund said the closure was “highly unfortunate” and the result of a “populist agenda” that demolished a young regulatory framework only a year and a half after it was introduced. He also said the market’s volatility is not new territory for the company, but the Brazilian decision was still a “total negative.”
4. Evolution has already closed its live casino studio in Brazil because of the ban. Carlesund said the company would be ready to return if the market reopens, adding: “If Brazil reopens its market, we are ready to accelerate.”
5. Carlesund also said Evolution will now prioritize supporting its employees in Brazil. The company did not change its FY 2026 guidance despite the closure of its office in the country.

Kambi has taken a similar line, saying it was disappointed by the decision but would be open to returning if the situation changes. For high-risk providers, Brazil is the sort of market that can move from target growth story to operational write-off fast enough to make board meetings more interesting than anyone wants.