VOL. XCIV, NO. 247

★ MOAT STOCKS & COMPETITIVE ADVANTAGES ★

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Friday, December 26, 2025

Evolution AB (publ)

EVO · Nasdaq Stockholm

Market cap (USD)$13.5B
SectorConsumer
CountrySE
Data as of
Moat score
94/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Evolution AB (publ) is a Sweden-based B2B iGaming supplier best known for online live casino games and game shows, alongside a portfolio of RNG/slot studios acquired over time. In Live Casino, the moat is anchored by high-capex studio scale (21 studios and 1,700+ live tables at year-end 2024), operational know-how in broadcast/game operations, and the ability to operate across many regulated jurisdictions. A single-integration distribution layer (One Stop Shop) bundles multiple Evolution-owned brands, improving cross-sell and adding integration switching friction for operators. RNG/slots is a more competitive market, but ownership of IP such as BTG's Megaways mechanic and a broad content portfolio can support differentiation and licensing revenue.

Primary segment

Live Casino

Market structure

Oligopoly

Market share

50%-60% (reported)

HHI: 5,050

Coverage

2 segments · 5 tags

Updated 2025-12-26

Segments

Live Casino

B2B supply of online live casino games (live dealer & game shows)

Revenue

86.1%

Structure

Oligopoly

Pricing

strong

Share

50%-60% (reported)

Peers

PTEC.L

RNG / Slots & Digital Casino Games

B2B supply of online casino RNG games (slots and digital table games)

Revenue

13.9%

Structure

Competitive

Pricing

moderate

Share

Peers

LNWIGTPTEC.LALL.AX

Moat Claims

Live Casino

B2B supply of online live casino games (live dealer & game shows)

Revenue_share derived from FY2024 net revenues by game type in Evolution's year-end report 2024 (Live 1,775.7 MEUR; total 2,063.1 MEUR). Source: https://mb.cision.com/Main/12069/4097972/3235592.pdf (published 2025-02-10).

Oligopoly

Capex Knowhow Scale

Supply

Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Operating a global, high-uptime live-dealer studio network at scale (dealers, broadcast, game ops) requires heavy capex, specialized know-how, and continuous process execution.

Erosion risks

  • Sustained studio cost inflation (wages, energy, rent)
  • Operational incidents/outages that damage trust
  • Technology commoditization in streaming/encoding

Leading indicators

  • Number of active studios and live tables
  • Live segment net revenue growth vs peers
  • Uptime / major incident frequency

Counterarguments

  • Large operators can multi-source live suppliers and negotiate fees
  • Regional studio buildouts can be replicated over time by well-funded rivals

Compliance Advantage

Legal

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Operating in regulated iGaming markets requires licensing, certifications, and ongoing compliance; incumbents with broad licensing footprints can enter/expand faster and serve more operators.

Erosion risks

  • Regulatory tightening or license loss in key jurisdictions
  • Higher compliance costs reducing marginal advantage
  • Jurisdictional fragmentation requiring localized ops

Leading indicators

  • Number of active licenses / jurisdictions
  • Share of revenue from regulated markets
  • Regulatory actions, fines, or license restrictions

Counterarguments

  • Competitors can also obtain licenses over time, especially in newer regulated markets
  • Local regulations can force multiple suppliers to build similar local capacity

Suite Bundling

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

A single integration layer and unified back office across multiple in-house game brands makes it easier for operators to adopt additional Evolution content and increases coordination/switching friction.

Erosion risks

  • Operators prefer best-of-breed point solutions and avoid platform dependence
  • Regulators require ring-fenced integrations by jurisdiction

Leading indicators

  • Attach rate of RNG/slots customers to Live (and vice versa)
  • Net revenue retention among top operators
  • Number of operators using OSS

Counterarguments

  • Most major operators already integrate multiple suppliers; OSS reduces friction but may not prevent churn
  • Aggregator platforms can also simplify multi-supplier integration

RNG / Slots & Digital Casino Games

B2B supply of online casino RNG games (slots and digital table games)

Revenue_share derived from FY2024 net revenues by game type in Evolution's year-end report 2024 (RNG 287.4 MEUR; total 2,063.1 MEUR). Source: https://mb.cision.com/Main/12069/4097972/3235592.pdf (published 2025-02-10).

Competitive

IP Choke Point

Legal

Strength: 3/5 · Durability: durable · Confidence: 3/5 · 2 evidence

Ownership of distinctive game mechanics/IP (e.g., BTG's Megaways) can create differentiated content and a licensing revenue stream, but the slot supply market remains crowded.

Erosion risks

  • Hit-driven content cycles; franchises can fade quickly
  • Mechanics/IP can be imitated with alternative designs
  • Regulatory restrictions on slot features and promotions

Leading indicators

  • RNG segment net revenue growth vs peers
  • Share of new game launches that gain meaningful distribution
  • Megaways (or other IP) licensing activity and royalties

Counterarguments

  • Many operators multi-source hundreds of games; no single supplier is indispensable
  • Megaways is broadly licensed, so differentiation may be limited

Suite Bundling

Demand

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence

Distribution leverage from a single integration layer (OSS) can increase shelf space for Evolution-owned RNG studios by lowering operator integration friction and enabling cross-sell from Live Casino relationships.

Erosion risks

  • Operators standardize on neutral aggregators rather than supplier platforms
  • RNG suppliers compete aggressively on commercial terms

Leading indicators

  • Share of operators taking multiple Evolution RNG studios
  • Cross-sell rates from Live customers into RNG
  • New operator integrations per quarter

Counterarguments

  • Aggregation platforms reduce integration as a bottleneck
  • Slots supply remains highly substitutable vs live dealer formats

Evidence

other
Evolution Annual Report 2024

At the end of 2024, Evolution had 21 studios in 12 countries, and more than 1,700 live tables.

Scale of studio footprint and table count supports a capex/operational scale moat vs would-be entrants.

other
Evolution Annual Report 2024

Evolution is licensed and regulated in numerous jurisdictions, including: Great Britain, Malta, Belgium, Denmark, Estonia, Latvia and Sweden.

Breadth of regulatory approvals increases addressable market and raises barriers for new entrants.

other
Evolution Annual Report 2024

One Stop Shop (OSS) is Evolution Group's single platform enabling operators to achieve simple, fast and unified integration of Evolution, Ezugi, NetEnt, Red Tiger, Big Time Gaming and Nolimit City games.

Supports bundling + integration-based switching costs: once connected, adding more Evolution content is low-friction.

regulation
UK CMA - Evolution/NetEnt full text decision

Table 1 ... Evolution [50-60]% (GGR) ... Playtech [40-50]% ... Pragmatic [0-5]% ... Authentic [0-5]%.

Provides a regulator-sourced market share range showing very high supplier concentration in UK live casino.

regulation
UK CMA - Evolution/NetEnt full text decision

Table 1 ... Evolution [50-60]% ... Playtech [40-50]% ...

Used to approximate market concentration (HHI) for the UK live casino supplier market.

Showing 5 of 8 sources.

Risks & Indicators

Erosion risks

  • Sustained studio cost inflation (wages, energy, rent)
  • Operational incidents/outages that damage trust
  • Technology commoditization in streaming/encoding
  • Regulatory tightening or license loss in key jurisdictions
  • Higher compliance costs reducing marginal advantage
  • Jurisdictional fragmentation requiring localized ops

Leading indicators

  • Number of active studios and live tables
  • Live segment net revenue growth vs peers
  • Uptime / major incident frequency
  • EBITDA margin trend
  • Number of active licenses / jurisdictions
  • Share of revenue from regulated markets
Created 2025-12-26
Updated 2025-12-26

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.