On September 28, shares of the provider Evolution experienced a peak decline of up to 4.4% on the Stockholm Stock Exchange following the ban on betting and online casinos in Brazil, as reported by Investing.com citing Reuters.
By the end of the main trading session, the drop in shares had reduced to 2.9%.
According to investment bank Pareto, as reported by MarketScreener, the ban is expected to reduce Evolution's revenue by several percentage points in the short term. Over the past 12 months, Latin America accounted for 8.6% of the company's revenue, with Brazil being the largest market in the region.
Before the market's legalization in January 2025, the region contributed 7% of Evolution's revenue through offshore operators, and in the medium term, these operators may capture some of the demand, which could mitigate the impact of the ban.