Supplier Evolution has released its Q2 2024 financial results, revealing a notable 15.9% year-over-year increase in revenue, totaling €508.4 million ($553.3 million). This brings the company’s H1 2024 revenue to the €1 billion mark, showcasing robust growth.

The company also reported a 10.9% year-over-year increase in Q2 EBITDA, reaching €345.8 million, with the first half of the year seeing a 13% rise to €691.5 million. Evolution’s EBITDA margin for the initial half of 2024 was recorded at 70.3%.

Mixed Profit Margins and Financial Performance

Despite the overall revenue growth, Evolution’s profit marginsdeclined to 52.9% in Q2 2024, down from 59.9% in Q2 2023. However, the period still saw a 1.9% year-over-year increase in profit, totaling €269.1 million. Profits for H1 2024 rose by 4.5% year-over-year, reaching €538.3 million.

Evolution’s CEO, Martin Carlesund, expressed satisfaction with the company’s financial performance, stating, “For the second quarter of 2024, Evolution reports revenue of €508.4 million, corresponding to a year-on-year revenue growth of 15% and an EBITDA margin of 68%. Revenue growth at constant currency is estimated to be 19% for the quarter. It has been a very active second quarter at Evolution, and I am happy with the progress we have made on several of our initiatives.”

Strategic Initiatives and Market Expansion

Evolution’s Q2 was marked by the introduction of a new capital allocation framework and the launch of a share repurchase program. Additionally, the company announced a deal to acquire Galaxy Gaming for $85 million, aiming to expand its presence in the US market. The acquisition is expected to be finalized by mid-2025.

Carlesund highlighted the company’s efforts to introduce offerings in newly regulated markets, such as the Philippines, Brazil, and the Czech Republic. He noted, “We are intensively working on introducing our offering to new markets that have recently regulated or are in the process of regulating.”

New Product Developments and Market Growth

Evolution has continued to innovate, with plans to release over 100 new games in 2024. Despite the postponement of the highly anticipated Lightning Storm game to Q3, the company successfully launched https://www.livedealers.com/evolution-unveils-balloon-race-a-new-era-in-online-slot-gaming/ Balloon Race, a new online live slot game, and Lightning versions of popular games SicBo and Dragon Tiger in Q2.

The company’s Live Casino segment reported an 18% year-on-year revenue increase, while the RNG segment saw a modest 2% growth. Carlesund expressed confidence in the company’s product pipeline, stating, “We have a high pace of fantastic game delivery in 2024, even better than in 2023.”

Evolution’s Q2 2024 financial results demonstrate strong revenue growth and strategic advancements. Despite some challenges, including reduced profit margins and a large payout on its Crazy Time game, the company remains optimistic about its future. With continued innovation, market expansion, and strategic acquisitions, Evolution is poised for further success in the global gaming industry.

Source:

Interim Report | January-June 2024 | Evolution AB (publ) [pdf], Evolution, July 2024.

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Evolution subsidiary Evolution Malta Holding Limited has announced an agreement to acquire Galaxy Gaming, Inc. for an equity value of about $85 million, payable in cash. This acquisition is set to significantly bolster Evolution’s presence in the US market, furthering its goal to be the premier provider of casino games worldwide.

Strategic Integration and Market Leadership

Galaxy Gaming, a trailblazer in the development and distribution of casino table games and advanced gaming technologies, has made a significant impact on the casino industry. Known for its innovative products and superior service, Galaxy Gaming has built a strong reputation as a reliable partner for casinos globally. The acquisition by Evolution is intended to enhance its extensive gaming content portfolio and solidify its leadership in the US market.

“We are thrilled to announce the acquisition of Galaxy Gaming, which represents a significant milestone in our mission to provide unparalleled gaming experiences to our customers. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position,” said Martin Carlesund, CEO of Evolution.

Maintaining Independence and Driving Growth

Following the acquisition, Galaxy Gaming will continue to function as a separate and independent business unit, with its current management and staff retained. This approach ensures stability and continuity while leveraging Evolution’s operational and financial resources to drive growth and innovation.

“We believe this transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders. It combines Galaxy Gaming’s thriving land-based business with Evolution’s global reach and innovative online gaming leadership,” commented Matt Reback, President and CEO of Galaxy Gaming.

Financial Details and Transaction Timeline

According to the Merger Agreement, Evolution will acquire all of Galaxy Gaming’s outstanding common stock shares for $3.20 per share in cash, reflecting a 124% premiumon Galaxy Gaming’s closing share price on July 17, 2024. The total equity value of the transaction stands at approximately $85 million, with the total value, including net debt, around $124 million. The acquisition will be funded with available cash reserves.

The transaction has received the approval of Galaxy Gaming’s board of directors, with board members holding roughly 14% of the company’s stock agreeing to vote in favor of the deal. The closing of the transaction is anticipated in mid-2025, pending customary closing conditions, including stockholder and regulatory approvals.

Advisors and Future Prospects

In this transaction, Evolution is being advised by J.P. Morgan SE as its exclusive financial advisor and Kirkland & Ellis LLP as its legal advisor. Galaxy Gaming is receiving advisory services from Macquarie Capital and legal advice from Latham & Watkins LLP.

Evolution’s acquisition of Galaxy Gaming is a pivotal move in its strategy to expand its footprint in the US. Earlier in 2024, Evolution acquired the social casino platform Livespins and established partnerships with major US online gaming operators like Caesars Digital and Rush Street Interactive. Additionally, Evolution has launched its Nolimit City studio across six US markets, further demonstrating its commitment to the American gaming sector.

Source:

EVOLUTION TO ACQUIRE GALAXY GAMING, A LEADING INDEPENDENT DEVELOPER AND DISTRIBUTOR OF CASINO TABLE GAMES AND TECHNOLOGY, galaxygaming.com, July 18, 2024.

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Since striking a partnership with the Delaware Lottery in 2023, BetRivers has been able to grow its offer locally, drive revenue, and make its product known and available to players with a soft spot for betting and gaming.

BetRivers strengthens iGaming offer in Delaware

Now, BetRivers is bringing even more worthwhile products to its shopping windows with the company confirming a new partnership with Evolution, a live dealer studio, which will see numerous of the latter’s games featured on BetRivers.

The partnership builds upon the already existing relationship between the two companies, which saw Evolution originally introduce its slot content through brands such as NetEnt, Red Tiger, and Big Time Gaming, all of which operate under the company’s umbrella and have been acquired at various points in the past several years.

Now, though, BetRivers is getting a taste of the company’s flagship products, the live casino titles, among which are Live Roulette, Infinite Blackjack, Baccarat, Craps, Three Card Poker, Ultimate Texas Poker, and Blackjack.

Commenting on this opportunity, Rush Street Interactive CEO Richard Schwartz has welcomed the opportunity to see the brand grow its iGaming offer in Delaware through this tie-up with Evolution:

BetRivers in Delaware is thrilled to offer players the chance to virtually play on Evolution’s world-renowned live tables. We are confident that the live dealer online casino will be very popular as the live dealer games offer the same level of excitement as playing in a land-based casino.

This deal further demonstrates BetRivers unflagging commitment towards the iGaming and sports betting market in Delaware and helps establish the company’s dominant position.

Presently, BetRivers is the sole entity that operates sports betting and online casino products in the First State for anyone who is of the legal gambling age of 21. The company succeeded 888 Holdings’ B2C operations locally, as the latter decided to wind down its business-to-consumer business in the United States.

In the meantime, BetRivers is also not to worry about incoming competition in the sports betting vertical. Although lawmakers attempted to liberalize the market and expand on the existing sports betting framework in 2024 by breaking BetRivers’ exclusivity rights over the market, those efforts have stalled.

BetRivers to enjoy another year of uncontested sports betting preeminence

House Bill 365 was filed in April by Rep. Franklin Cooke and Rep. William Bush, and the draft legislation sought to introduce five more sportsbooks that would have created a more level playfield and competition between private companies.

According to Cooke, this move was necessary because of market forces and specifically mounting consumer demand for alternatives. Essentially, Cooke believes that a more competitive landscape would positively impact consumers who would have access to a more diverse range of odds.

Yet, for any criticism against BetRivers, the company actually negotiated the launch of online sports gambling in the state with the Delaware Lottery, making it possible for residents to access sports betting markets anywhere in the state and on the go.

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Step into the realm of excitement and fortune with the much-anticipated Evo Mega Jackpot campaign, a masterpiece that was created as a result of a groundbreaking collaboration between SOFTSWISS and Evolution Gaming Group AB.

This revolutionary campaign promises to bring something really exciting, offering players a next-level experience filled with extraordinary action and massive rewards.

Pioneers in Gaming Innovation

Renowned as a trailblazer in the gaming industry, Evolution Gaming Group is a leading provider of cutting-edge solutions for online casinos. Its extensive portfolio features a captivating array of live casino games, game shows, and immersive slots developed in partnership with industry giants like NetEnt, Red Tiger, and Big Time Gaming (BTG).

The Evo Mega Jackpot campaign is just one more of the impressive products that the company plans to present. By leveraging the SOFTSWISS Game Aggregator platform, this campaign showcases a curated selection of games designed to captivate players and keep them on the edge of their seats. With innovative features and seamless integration, players can expect nothing short of a gaming extravaganza.

Prepare to be dazzled by the staggering prize pool of the Evo Mega Jackpot campaign. With a generous offering of 50,000 euros, players have the chance to win life-changing sums with every spin. What’s more, the campaign welcomes players of all levels, with a minimum bet of just 1 euro, ensuring that everyone can participate in the thrill of winning big.

Structured for Success: Fair and Transparent Gameplay

In the spirit of fairness and transparency, the Evo Mega Jackpot campaign features a meticulously structured prize distribution system. With multiple tiers of rewards, including grand prizes of 1,000 euros each, 100 prizes of 100 euros, and 400 prizes of 50 euros, players are guaranteed an exhilarating and rewarding experience.

The Evo Mega Jackpot campaign is set to launch on March 11 and will conclude on March 31, giving players almost the entire month to chase their dreams of hitting the jackpot. This highly anticipated event is already generating buzz within the gaming community, with players eagerly awaiting the chance to test their luck and skill.

Don’t miss out on the gaming event of the year! Whether you’re a seasoned player or new to the world of online casinos, the Evo Mega Jackpot campaign promises non-stop excitement, incredible prizes, and unforgettable moments. Join us on this epic adventure and let the thrill of winning take you to new heights!

Nicholas Peters, Chief Business Development Officer Europe at Evolution, adds: “We are excited to partner with SOFTSWISS in the Evo Prime Drop campaign. Collaborating with the expert team behind the Jackpot Aggregator, and given the excellence of SOFTSWISS’ software solutions and the premium games from providers integrated by Evolution, we are confident in the campaign’s success. We are constantly looking for new technologies and mechanics to maintain a leading position in the market and provide innovative solutions to our customers. We are pleased that our collaboration with the SOFTSWISS Jackpot Aggregator has proven to be mutually beneficial. “

Source: ”SOFTSWISS and Evolution Launch Evo Prime Drop”. SoftSwiss. March 28, 2024.

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Evolution, the industry-leading iGaming content supplier of premium live dealer games, has inked a strategic deal with Caesars Entertainment to broaden its presence across North America.

This partnership aims to introduce Evolution’s top-notch live casino offerings to players in various US states.

New Jersey Studio Expansion

As part of the agreement, Evolution and Caesars will collaborate to establish live casino studios in multiple US states, with a particular focus on New Jersey. The Tropicana Casino, owned by Caesars Entertainment, will host Evolution’s third live casino studio in Atlantic City. This expansion initiative shows the developer’s desire to deliver an even better gaming experience for players in the region.

Additionally, the brands will team up to launch new studio spaces within Evolution’s existing studios in Pennsylvania and Michigan. These strategic collaborations will enable Caesars players to access the supplier’s diverse portfolio of live casino games, including popular titles from brands like NetEnt and Red Tiger.

Through this partnership, Caesars players can look forward to an enhanced gaming experience, with access to its new partner’s immersive live dealer games featuring cutting-edge technology and captivating gameplay. Evolution’s state-of-the-art studios will provide players with an authentic casino experience from the comfort of their own homes.

Expanding the Reach of Live Casino Gaming

The collaboration between Evolution and Caesars marks a significant milestone in the expansion of live casino gaming in North America. Furthermore, the partnership aims to bring innovative and engaging live casino entertainment to players across the United States.

In the announcement, Evolution chief executive for North America Jacob Claesson, said: “Caesars’ expansion in the market is remarkable and noteworthy. We’re impressed by Caesars’ dedication and look forward to collaborating with them as they continue to expand their branded studio presence.”

Matthew Sunderland, Caesars Digital’s senior vice-president, and chief iGaming officer added: “Elevated live dealer experiences are an area of opportunity and something online casino players are continuing to show an affinity for. With this in mind, partnering on a deeper level with Evolution, the market leader in live casino offerings, made a lot of sense.”

Source: ”Evolution announces multiple new live studios with Caesars in US”. iGaming Business. February 20, 2024.

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B2B online casino services provider Evolution has unveiled a new strategic agreement with Caesars Entertainment’s online arm, Caesars Digital. Under the deal, the companies will reinforce and expand their existing partnership in North America.

The former company referred to the deal as a “groundbreaking partnership,” saying that Evolution and Caesars will work together to establish dedicated studios across multiple US states. This would include a studio inside Caesars’ Tropicana Casino in New Jersey, the provider pointed out.

The studio at Caesars’ world-renowned resort will mark Evolution’s third live casino studio in Atlantic City, enhancing the company’s ability to meet the demand of New Jersey’s rapidly growing market.

In addition to the studio arrangement, Evolution and Caesars agreed to collaborate on launching additional branded studio space within Evolution’s existing studios in Michigan and Pennsylvania.

The partnership reflects Caesars’ ambition to grow its online footprint, as further demonstrated by its recent decision to acquire WynnBET’s iGaming operations in Michigan.

The Deal Made a Lot of Sense

Caesars Digital’s senior vice president and chief iGaming officer, Matthew Sunderland, addressed the tie-up with Evolution, saying that his company wants to elevate live dealer experiences and provide fans with best-in-class products.

Sunderland added that the partnership with Caesars Digital “made a lot of sense” and that he believes the players are going to love what the two companies have in store.

We trust that our players will be excited by these best-in-class live casino experiences and can’t wait to see how our new dedicated live dealer studio spaces come together at Tropicana Atlantic City and in other jurisdictions where iGaming is live.

Matthew Sunderland, SVP & chief iGaming officer, Caesars Digital

Jacob Claesson, Evolution’s chief executive for North America, also shared his thoughts, praising Caesars’ “remarkable and noteworthy” market growth. He pointed out that the decision to launch a third live studio in Atlantic City was a no-brainer.

We’re impressed by Caesars’ dedication and look forward to collaborating with them as they continue to expand their branded studio presence.

Jacob Claesson, CEO NA, Evolution

In addition to the aforementioned terms, the agreement will allow online players on Tropicana Online Casino, Caesars Sportsbook & Casino, and Caesars Palace Online Casino to continue enjoying access to Evolution’s live casino hits and top-performing content from its proprietary studios.

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A class action lawsuit has been filed against Evolution by consumer and class action specialists Federman & Sherwood. The suit alleges Evolution deceived investors regarding its growth trajectory and compliance with US law, undermining its revenue and growth. The lawsuit covers the period between 14 February 2019 and 26 October 2023, seeking to recover damages on behalf of investors who purchased Evolution securities.

The Company Faced Rising Pressures

Evolution has faced regulatory challenges, including allegations of breaching US sanctions and operating in countries black-listed by the US. In November 2021, the company was accused of conducting business illegally in several markets, resulting in a substantial decline in its share price. A January 2022 analyst report suggested that a significant portion of Evolution’s revenue could be at risk due to potential regulatory clampdowns.

In April 2022, Australia’s gambling regulator requested ISPs to block unlicensed online gambling sites, five of which were Evolution customers, leading to a decline in the company’s share price. The Swedish Administrative Court upheld a record fine on an Evolution customer, ComeOne Group, resulting in an 11% drop in shares. Reports of industry entities lobbying against the UK’s planned gambling laws overhaul also impacted Evolution’s shares.

Evolution’s financial reports revealed several underlying challenges, showcasing stagnant North American performance and flatlined overall growth, leading to share price declines. October 2023 marked the latest negative development for Evolution as it experienced delays in opening new studios, raising concerns regarding the company’s long-term prospects.

The Plaintiff Alleges Evolution Obscured Information

The Federman & Sherwood complaint alleges violations of Section 10(b) of the Securities Exchange Act and Rules and breaches of Section 20(a) of the Securities Exchange Act. The lawsuit claims that between 24 January 2022 and 26 October 2023, various disclosures revealed the truth about Evolution’s compliance, revenue, and growth, leading to a significant share price drop.

“The Complaint alleges that Defendants… made materially false and/or misleading statements regarding Evolution’s compliance with governing laws…and growth strategies.”

Federman & Sherwood statement

The suit names Martin Carlesund, Evolution CEO, and Jacob Kaplan, chief financial officer defendants. If the company did obfuscate its growing regulatory and compliance issues, it could have significant long-term repercussions. Evolution has not yet responded to the allegations, likely preferring to save its efforts for the impending hearing.

Federman & Sherwood set a deadline of 26 March 2024 for investors wishing to participate in the legal action against Evolution. The class action lawsuit sheds light on Evolution’s challenges in maintaining regulatory compliance. The subsequent impact on its financial performance and shareholder value could draw increased scrutiny on the sector as a whole.

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Enter Crazy Time, the award-winning game show by the company, which is now available in the Garden State and will bring a bit of Evolution magic to the local gaming scene. The title has already made its mark on Europe and is now going to try and steal audiences away from similar formats in the live casino vertical in the United States. Or rather compel players to examine the exciting format.

Growing Evolution’s Signature Portfolio with New Releases

The iGaming sector in the country has been expanding rapidly of late, and with this, there has been demand for more game shows and concepts that defy the traditional experience. Crazy Time is more or less based on titles such as The Price is Right and Wheel of Fortune.

What makes the game so fun and special is Evolution’s decision to layer it on with multiple smaller bonus games that will trigger Cash Hunt, Pachinko, Crazy Time Wheel Bonus, and Coin Flip, or essentially, it’s a game within a game, within a game, and so on.

The wheel also features a 25x multiplier which can really up the ante and add to the fun. Plus, there is a chance to win 10,000x the size of the player’s bet, which can quickly result in a massive payday.

As Evolution is already present on the market in New Jersey, there is no shortage of brands that will benefit from this title, including Caesars Palace Online Casino, BetRivers, DraftKings Casino, BetMGM Casino, and more.

Building a Strong Proposition with Crazy Time and High Production Values

Commenting on the launch in the market, Evolution America CEO Jacob Claesson argued that the game show was a particularly distinct product that marked a brand new chapter for the company. He explained:

Across the world, operators and players alike have praised Crazy Time’s incredibly high production values, its commitment to entertainment and depth of engagement, and the sheer fun and enjoyment it offers players.

Evolution America CEO Jacob Claesson

Of course, Evolution is also planning smartly ahead as the company knows that the six iGaming states status-quo is unlikely to remain intact for much longer. In the wake of rapid sports gambling legislation, more lawmakers are becoming open to the idea of expanding into online gambling, as it would allow states to generate extra coin for their coffers.

Evolution recently expanded in West Virginia through a partnership with BetRivers, and the company is looking to deliver more excellent experiences in North America, as it strengthens local footprints.

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Evolution, the world’s top supplier of live dealer games for online casinos, has announced that Crazy Time, one of its most popular live casino titles, has finally been launched in the United States.

Crazy Time was first released in 2020 and back then it was the most expensive live casino game show ever created by Evolution, a game that took more than a year to make.

Now the hugely popular live casino title was first made available to the American public as Evolution began to stream it from its live casino studio located in New Jersey. The release follows two other successful launches in the United States for Evolution as Crazy Coin Flip was unveiled in New Jersey and Super Sic Bo in Pennsylvania earlier this month. Evolution also announced that all three live casino titles will go live in more American states in 2024.

An Ambitious Game

Evolution describes Crazy Time as one of its “most ambitious games,” a title which features several cutting-edge technologies such as multi-camera live game show action, random number generator multipliers, augmented reality and slot-style video gaming elements.

The gameplay is centered on a main game which is complemented by four interactive bonus games. The main game has a two-reel Top Slot at its core, a slot that spins at the same time as a money wheel. Then the bonus games kick in, adding lots of excitement with features such as a shooting gallery in Cash Hunt, a Coin Flip, a Puck drop in Pachinko, and the bonus game.

In these bonus games players can really boost their potential earnings, considering that the maximum multiplier that can be reached is no less than 10,000x. The bonus games in has proven extremely popular and that is why they inspired Evolution to create new titles such as Crazy Coin Flip, Red Door Roulette and Crazy Pachinko.

Landmark Launch

Jacob Claesson, Chief Executive Officer for North America at North America, described the launch of Crazy Time in New Jersey as “a landmark moment” for the company and for the United States online gambling market as a whole.

“Operators and players alike have praised Crazy Time’s incredibly high production values, its commitment to entertainment and depth of engagement,” the Evolution executive underlined, while declaring himself “incredibly excited” to offer U.S. players such a successful live casino title.

The bonus games featured in Crazy Time “have reinvented the way casino games are played,” Jacob Claesson added, pointing out that the game delivers “a true game show experience unlike no other.”

Source: “Landmark Us Launch For Crazy Time, Evolution’s World #1 Online Live Game Show“. Evolution. December 12, 2023.

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Evolution and Playtech are both distinguished companies with tremendous clout, which now extends not just to the Danish market but also to Spillebranchen, the industry body that is working hard to establish robust standards in an evolving industry.

Evolution and Playtech to Help Build Safer Gambling in Denmark

The focus of the work is on creating responsible and sustainable gambling practices that serve as guidelines to existing and newly-arrived businesses and the industry body reunites a stardom of companies with a strong and established local record, including Betsson, Betfair, bet365, LeoVegas, Mr Green, Danske Licens Spil, Entain, and not least, Kindred Group.

In an official statement, Spillebranchen welcomed the opportunity to collaborate with Playtech and Evolution, adding to what is already a formidable portfolio of participants.

“We look forward to the opportunities this partnership presents and look forward to a fruitful collaboration that benefits our members, the industry and the countless individuals who enjoy gambling responsibly,” the statement added.

Denmark has been one of the true torch-bearers in the regulated gambling markets in Europe, as the country has been repeatedly cited by EGBA, the European Gaming and Betting Association, as one of the best-regulated and safest markets.

Regardless, Denmark and its local regulator have found it necessary to continue evolving and improving their offer. A recently launched website, StyrPåSpillet.dk, is the country’s latest effort to ensure that there is a good level of understanding about responsible gambling and problem gambling.

The website is geared towards Danish consumers who want to learn more about the country’s gambling industry, but it also features materials and lived experiences of recovering addicts. A big focus of the ongoing efforts lies on prevention, and target the age groups between 13 and 15, which are deemed vulnerable.

Pathological Gambling Prevention Is Key to Industry Sustainability

A recent study conducted by Spillemyndigheden also indicated that 15% of young people aged between 15 and 17 are gambling, thus why the new portal and its materials are paying particular attention to this age group.

Denmark has also extended its land-based self-exclusion program, ROFUS, to land-based venues, in a bid to further strengthen protections and safeguard consumers.

In September, the country introduced a solution called Payer ID which is a new technological contraption designed to offer a more personalized protection through deposit limits but also facilitate the overall gambling experience to avoid frustration.

Denmark has been delivering well on creating a tightly regulated industry which does not alienate local gamblers and does not push them into the grasp of offshore gambling sites.

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