Evolution falls as Brazil betting ban raises growth risks

Better Collective A/S

28/09/2026 09:24

** 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

(Reporting by Jesus Calero)
((jesus.calero@thomsonreuters.com))