Evolution’s hopes of returning to Brazil dimmed further after President Luiz Inácio Lula da Silva secured re-election on 25 October with 51.76% of valid votes.
Lula defeated Flávio Bolsonaro in the presidential run-off and has publicly pledged to maintain the online gambling ban his administration introduced last month.
The ban stems from Provisional Measure MP 1.394/2026, which Lula signed on 25 September, prohibiting both online sports betting and casino operations across the country.
Evolution had already shuttered its live casino studio in Brazil by that point, with the closure taking effect on 5 October, just days after the measure came into force.
Speaking during the company’s Q3 2026 earnings call on 23 October, chief executive Martin Carlesund described the shutdown as “highly unfortunate” and framed it in explicitly political terms.
He argued the situation demonstrated how a “populist agenda can overthrow a regulatory framework that has only been in place for one and a half years.”
Carlesund stopped short of predicting what would happen next, having told analysts on the call that “we will know more after the second round of the election.”
With Lula now confirmed as the winner, the path back into Brazil for Evolution looks considerably narrower, though Carlesund maintained the group could return “on short notice” if conditions changed.
Despite the closure, Evolution’s financial guidance remains intact, and the supplier’s Latin American business delivered one of its strongest regional performances during the third quarter.
Latam revenue expanded 23.1% year-on-year in Q3, a figure Carlesund was careful to note “didn’t include any effects” from the Brazilian ban, meaning the true regional impact is still to come.
Brazil itself represents “well below half” of the company’s total Latin American revenue, according to Evolution’s own interim report, which suggested growth elsewhere in the region could partially cushion the blow.
Carlesund struck an optimistic tone on future possibilities, stating plainly that “if Brazil reopens its market, we are ready to accelerate,” with infrastructure and staffing capable of being mobilised quickly.
Evolution warned investors that the fourth quarter would prove more consequential than the third, given that the full financial weight of the Brazil closure will register only in the months ahead.
