Evolution falls as Brazil betting ban raises growth risks

By Reuters News

** Shares in Swedish online casino games provider Evolution EVOG.ST fall 4.4% after Brazil on Saturday moved to ban online betting operations nationwide, less than two years after launching a regulated market

** "Changed regulation in Brazil will negatively impact share prices, with the online market effectively shut," Jefferies says in a note

** Evolution does not disclose its Brazil exposure, though Latin America accounts for about 9% of group revenue and the company operates a dedicated live casino studio in São Paulo, the broker notes

** Jefferies says initial EBITDA impacts may be less material for gaming firms, but sees greater risk to medium-term growth outlooks

** Shares in Evolution peer Better Collective BETCO.ST opened 24% lower on Monday after the Danish group cut its FY26 guidance and withdrew its FY27-28 forecast following the ban, with about 12% of its revenue generated in Brazil

** "With much reduced regulatory visibility in Brazil, we expect 'shoot first' share price reactions initially, with a subsequent sifting through idiosyncratic exposures," Jefferies says

** Evolution shares are on track for their worst day in seven months

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.