Evolution AB CEO Martin Carlesund is reconsidering the company’s planned acquisition of Galaxy Gaming on the last day to close the long-awaited transaction.
During the company’s Q2 2026 earnings call on Thursday, Carlesund shared the company’s plans for its previously announced acquisition of Galaxy Gaming. The Evolution CEO said the company might no longer consider a purchase of Galaxy Gaming, in a deal projected to have a total equity value of approximately $85 million. Evolution is weighing whether to dissolve the potential transaction on the deadline for both companies to finalize a deal.
“After today, either party may choose to terminate the agreement. Two years have passed, and we have spent significant time, effort and resources handling the administration needed to close the acquisition,” said Carlesund during the Q2 earnings call.
Long history between Evolution, Galaxy Gaming
Evolution first announced an agreement to acquire Galaxy Gaming in July 2024.
The transaction received approval from Galaxy Gaming’s board of directors and was expected to close in Q1 2026. In November 2025, Galaxy and Evolution mutually agreed to extend the merger agreement until July 17, 2026. With the deadline here, Evolution could backtrack on its agreement to acquire the casino game and technology developer.
“I really think that Galaxy is a great company, and we have had a strong commercial relationship with them for many years,” continued Carlesund. “But due to its size, the transaction is not significant for Evolution. That means that the outcome has no material impact on our existing business, our U.S. operations or our long-term ambitions.”
Carlesund’s sentiment that a purchase of Galaxy Gaming would not impact Evolution’s existing operations follows a licensing extension between the two companies signed in 2023. The agreement extends Galaxy Gaming and Evolution’s licensing relationship for an additional 10 years, allowing Galaxy Gaming to offer its games across Evolution products.
Galaxy Gaming will continue to provide its gaming content to Evolution, but is poised to remain under the same ownership structure as Evolution reconsiders an acquisition.
“We will now continue to evaluate,” added Carlesund. “I also point out that, as a matter of the size, it’s not anything that is significant, and it doesn’t affect Evolution’s plans or anything else in the U.S. or elsewhere.”
Evolution latest financial results
Evolution considers a deal for Galaxy Gaming not to be “significant” after the former reported a year-over-year decline in quarterly revenue. In Q2 2026, net revenue for the company reached $592 million, a decrease from $600 million for the same period last year.
Evolution’s EBITDA for Q2 2026 closed at $390 million, down from $394 million in Q2 2025. Meanwhile, the company’s profit grew to $288 million, up from $284 million in Q2 2025.
Evolution’s North America revenue grew by 9.5% year-over-year in Q2 2026 to $93 million.
During the quarter, the Swedish company opened its second live dealer studio in Michigan, bringing the company’s total live dealer studios to seven in the U.S. Earlier this week, the company continued to expand its presence in North America with its debut in Alberta.
Evolution reaches settlement in Europe
It has been a busy week for Evolution as the company released its latest earnings results, while also agreeing to a $6.4 million settlement with the UK Gambling Commission. The settlement resolves a license review by the regulator launched in December 2024.
Evolution is settling with the UK Gambling Commission over the delivery of its content on unlicensed gambling platforms to British customers. The company breached its terms of supply by offering content to two operators that do not hold a gaming license for six sites.
“At Evolution, we always want to do what is right, and it is not acceptable that six unlicensed sites offered Evolution content in the regulated UK market. We do not want traffic from unlicensed operators and will always move quickly to address any such situation. We welcome the conclusion of the review and remain focused on continuing to supply our world-leading games to licensed operators in the UK,” said Carlesund.
Unfavorable court ruling for Evolution
The company also received unfavorable news in its legal dispute against New Jersey-based law firm Calcagni & Kanefsky LLP.
Last month, Evolution’s request to add Playtech as a defendant in a defamation lawsuit against Calcagni & Kanefsky LLP was denied. The ruling was procedural as Evolution simultaneously filed a motion for relief from a stay under the Uniform Public Expression Protection Act (UPEPA). The ruling is without prejudice, allowing Evolution to make another attempt to add Playtech to the suit once the UPEPA issue is resolved.
Evolution is taking legal action against Calcagni & Kanefsky after Playtech hired a private intelligence firm, Black Cube, to draft a report on Evolution’s business practices. Playtech hired the firm claiming Evolution operated illegally in several international markets.
Playtech claims the commissioning of the report is fair and permissible. Meanwhile, Evolution argues that the report was commissioned to eliminate competition in the U.S.
