David Morey 
Evolution Gaming Group’s immersive live casino experiences are revolutionizing the way players interact with the iGaming industry.
Their suite of products features human dealers running games from casino studios, which are broadcast in real-time to players’ digital devices.
The company handles all aspects of the live casino experience, from recruiting and training dealers to streaming, production, and customer service.
Evolution’s game portfolio includes classic favorites such as roulette and blackjack. They also have ingenious new creations like ‘Dream Catcher’ and their recent hit ‘Crazy Time.’
One of Evolution’s most noteworthy clients is Flutter Entertainment, which signed a deal in 2019 to utilize the firm’s live casino portfolio across several of its betting brands.
The Republic of Ireland headquartered company uses Evolution’s live games on platforms such as Paddy Power and Betfair, and has enjoyed massive success with the products.
Labeled as a ‘major deal’, the agreement heralded a significant expansion for Evolution, offering its popular games to millions of customers across well-established online gambling platforms.
Paddy Power and Betfair customers gained access to industry-leading games developed by one of the most trusted live dealer providers in the industry.
The deal paid massive dividends for Evolution as it opened the door for them to broaden their horizons beyond Ireland and other European jurisdictions.
They are currently the only major live casino provider in the United States, although United Kingdom-based developers Playtech is set to jump on the bandwagon.
Evolution’s prime position translates into lucrative deals, with the company earning a 10-20 percent commission on the gross revenue generated from their games.
They have a global network of online casino studios in Riga, Latvia, Tbilisi, Georgia, and Malta, and their dedicated facilities in New Jersey and Pennsylvania cater to the US market.
Live Dealer Games are Powering Massive Industry Growth
UK-based gambling industry data provider H2 Gambling Capital (H2GC) has predicted that live dealer games will boom in popularity over the next few years.
This format is currently experiencing a compound annual growth rate (CAGR) of 32%, and the upward trend shows no signs of slowing down.
Evolution have capitalized on the trend. Their revenue has grown organically by a staggering 49%, solidifying their position as live casino solutions leaders.
The company’s meteoric rise can be attributed to its ability to breathe new life into classic games such as roulette, blackjack, and baccarat.
They have launched 27 new games since 2012, including the aforementioned ‘Dream Catcher’ and ‘Crazy Time’. The firm has also replicated game shows such as ‘Deal or No Deal’ in a live format.
Their efforts have resulted in the number of operators partnering with the firm growing from just 70 in 2014 to over 300. Evolution’s commitment to quality undoubtedly creates a considerable gap between themselves and their competitors.
As the company unveils exciting new games and welcomes more operators to its platform, more players are drawn to their rich offerings. This paves the way for better margins for Evolution and its partners.
Since going public in 2015, the company has garnered a CAGR revenue of approximately 50%, leading to consistently improving margins.
However, maintaining a high-quality experience requires significant investment, so it is no surprise that Evolution’s staff costs represent their largest expense.
The company has 8,700 employees, and many of them are dealers stationed in studios in Malta, Latvia, Georgia, and North America.
Despite these costs, Evolution has always been run on a debt-free balance sheet. Their free cash flow (FCF) has surged from €12 million to €294m in four years.
The company is also exceptionally efficient at converting net income into FCF, averaging a remarkable 90% conversion rate.
The average return on invested capital (ROIC) also hovers around 27.5%, which means Evolution’s business has been incredibly profitable and efficient.
