Taken one by one, the latest numbers from listed operators, suppliers and affiliates look like company-specific stories. Read together, they point to a broader pattern. European markets are becoming harder to scale, more expensive to operate in and less forgiving when growth slows. That pressure shows up in different ways depending on the business model, but the direction appears to be similar.
evolution-confirmed-the-shift-rather-than-defining-it”>Evolution Confirmed the Shift, Rather Than Defining It
Evolution’s first quarter was the clearest fresh example, but not the whole story. Group revenue came in at €513.0 million, down 1.5% year on year, while operating margin eased to 57.0%. The more telling number was regional, though.
Revenue by customer location from Europe fell to €345.3 million from €385.2 million a year earlier and €366.7 million in the previous quarter. In the company’s player-location view, Europe generated €167.1 million, while Asia reached €197.8 million. That gap shows Europe is still large, but no longer carrying the same weight in the growth mix.
Operators and Suppliers Are Feeling the Same Squeeze
In its Q4 2025 update, Betsson said revenue was expected at €304 million against €307 million a year earlier, while EBIT was expected to fall to €53 million from €70 million. Western Europe and Latin America continued to show strong growth. However, growth slowed in CEECA and revenue from the Nordics declined. Betsson also added that gaming taxes rose to €53 million from €43 million as locally regulated revenue reached 68% of group revenue.
As seen from Kambi’s Q4 report, quarterly revenue fell 3.9% to €42.7 million, while full-year revenue declined 8.2% to €162.0 million. Management said the business had absorbed new and increased taxes in several jurisdictions. The company even flagged a possible new Colombia tax as a factor in its 2026 outlook. That is a useful signal for Europe too: profits are becoming more sensitive to policy and tax changes across regulated markets.
Affiliates Usually Feel the Friction Faster
Raketech offered a similar signal from the affiliate side. The company stated that changing market dynamics observed throughout 2025 continued to weigh on its Paid Publisher Network.
Revenue from continued operations for Q4 2025 stood at €5.7 million, compared to €6.2 million in the previous quarter, whereas adjusted EBITDA fell to €1.1 million from €1.2 million in Q3. Management responded with further cost savings and a phase-out of weaker traffic sources.
Takeaways for the Market
Europe is becoming a region where regulatory burden, taxation, and market dynamics create limited opportunities for easy gains. This helps explain why certain management teams remain focused on Latin America, North America, and select other markets when discussing growth.
European markets remain important. However, protecting margins now appears to require sharper execution than before.
