Evolution Gaming Group AB: FY 2023 Overview

Evolution Gaming Group AB is a prominent Swedish gaming company specializing in the development, management, and licensing of online casino games. Founded in 2006 and headquartered in Stockholm, Evolution Gaming provides high-quality content to both B2C and B2B entities. Their clientele includes online gambling and land-based casino operators across Europe and North America.

The company boasts a significant global footprint with eleven studios in Europe, seven in North America, two in South America, and plans to establish a second studio in Colombia. This extensive network supports their commitment to delivering top-tier gaming experiences worldwide.

Financial Performance

Evolution Gaming Group is publicly traded on Nasdaq Stockholm under the ticker symbol EVO. As of December 31, 2023, the company had 212,771,346 shares outstanding. Demonstrating a strong financial performance, Evolution Gaming Group pays annual dividends equivalent to 50% of net profit. In 2023, the dividend per share was 2.65 EUR, reflecting a substantial 32.50% increase from 2.00 EUR in 2022.

The company’s Total Consolidated Revenue for FY23 was 1,798.601 million EUR, marking a 23.47% increase from FY22’s 1,456.737 million EUR.

Brand Portfolio and Revenue Distribution

Evolution Gaming Group’s portfolio includes several renowned brands such as NetEnt, Nolimit City, Big Time Gaming, Ezugi, Red Tiger, and DigiWheel. These brands provide RNG games for both online and land-based casinos. In FY23, 84.69% of the total revenue, amounting to 1,523.274 million EUR, was generated from live game products, including live casino and live game shows. RNG games contributed 275.327 million EUR, representing 15.31% of the total revenue.

Regional Sales Breakdown

The revenue distribution by region in FY23 was as follows:

• Europe: 39.47% (709.9 million EUR)
• Asia: 37.38% (672.3 million EUR)
• North America: 12.60% (226.7 million EUR)
• Latin America: 7.11% (127.8 million EUR)
• Other regions: 3.45% (62.1 million EUR)

Criticism and Challenges

Despite its success, Evolution Gaming Group has faced several legal challenges:

In 2018 seven employees filed a lawsuit against the company, alleging coercion to accept work in Georgia under less favorable terms than those at the Malta site. The employees described this as “completely insulting and unlawful.”

In 2020 the General Workers’ Union initiated an industrial dispute with NetEnt and Evolution Gaming Group following layoffs after their merger. The union claimed the companies violated collective dismissal and business transfer legislation by failing to provide necessary information about the layoffs.

In 2021 Evolution Gaming Group was accused of operating in countries under U.S. sanctions, including Syria, Sudan, and Iran. The company stated that accessing their content in these countries required VPN manipulation and accused an unknown aggregator of attempting to discredit them. Evolution emphasized that partner operators must comply with licensing requirements and verify players’ identities, and they are cooperating with regulatory bodies on this matter.

In 2023 an employee in Fairfield, Connecticut, was arrested for fraud and theft amounting to 47,000 USD during blackjack games. The employee exploited his access to place advantageous bets, resulting in a loss to DraftKings. Evolution Gaming Group detected the scheme through monitoring and confirmed the employee’s guilt with video evidence and internal documents.

Future Prospects

Evolution Gaming Group AB has demonstrated substantial growth and resilience despite facing legal and regulatory challenges. Their commitment to innovation and expansion positions them as a leading player in the online gaming industry, delivering high-quality experiences to players and operators worldwide.

A key driver of Evolution Gaming’s success is its unwavering commitment to quality. The company’s live game products, which account for a substantial portion of its revenue, are renowned for their immersive and engaging experiences. The continuous introduction of new games and the expansion of live table games are clear indicators of Evolution’s dedication to enhancing its product offerings and maintaining a competitive edge in the market.

Looking ahead, Evolution Gaming is well-positioned for continued growth and success. The company’s strategic investments in new studios and game development, combined with its strong financial foundation, provide a solid platform for future expansion. As the global online gaming market continues to evolve, Evolution Gaming is poised to capitalize on emerging opportunities and further cement its status as an industry leader.