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Thursday, June 15, 2023

Evolution Gaming - Is It Going to Slow Down?



Founded in 2006, Evolution Gaming is responsible for revolutionising live casino games with its ground-breaking software. Using specialised cameras, the software allows players to interact with real dealers in real-time. As a result, the company offers one of the most realistic online gambling experiences. Its suite of games includes everything from roulette to blackjack, and even live game shows like Monopoly Live and Deal or No Deal.

The company has a long list of licenses from some of the world’s leading gambling authorities, including the Malta Gaming Authority, UK Gambling Commission, Curacao Gaming Control Board and Gibraltar Authority. It also has several studios around the world, with its main facility in Riga, Latvia, having been expanded a number of times over the years.

Its latest financial results have shown a steady increase in profits, with operating revenues growing by 38.6 per cent to €326.8 million and EBITDA increasing by 43.4% to €229.7 million. This has led to a rise in free cash flow by 56.1%, which is a very impressive figure when you consider that most companies struggle to keep up with their bills in this difficult environment.

However, some investors have been worried about a possible slowdown in earnings growth. The stock has dipped by more than 2 per cent this morning, which is a very significant drop considering the fact that Evolution has been delivering strong growth year-on-year for the past four years.

The key reason for the Evolution gaming slowdown is a new U.S. investigation into the company. An anonymous probe has alleged that Evolution’s games are accessible from countries under U.S. sanctions, which would be a breach of federal laws. The company’s response was to reassure regulators that it only makes its live dealer casino games available in legal jurisdictions.

Evolution says that it works closely with regulators and operators, but it is the operator's responsibility to ensure that they do not allow players from countries that are banned by law to play its games. The company has also denied that it uses any form of technical manipulation to circumvent its systems.

Evolution’s business model is to provide fully-integrated live casino solutions for its operator clients. The company’s products are widely regarded as being some of the best in the market, and they are popular with both casual and high-stakes players. In addition to its own portfolio of games, the company has recently expanded by acquiring slot developers NetEnt and Red Tiger Gaming. As a result, its portfolio now contains over 200 titles. These slots are localised and presented in different languages, and they can be played from a variety of devices, including mobile. This has enabled Evolution to reach a much wider audience and further expand its customer base. This is good news for both the company and its players, as it helps to ensure that Evolution’s games are available in more jurisdictions. As a result, it has a larger addressable market and is well-positioned to grow for many years to come.

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