Is Evolution’s Galaxy Gaming acquisition in trouble?

Summary

Evolution agreed an $85m deal to buy Galaxy Gaming in July 2024 to bolster its US expansion, but the acquisition still hasn’t closed. The firms pushed the merger deadline to July 2026 amid delays securing regulatory approvals in Nevada and Louisiana. Evolution now expects those approvals in Q1 2026, but fresh guidance from the Nevada Gaming Control Board (NGCB) — and ongoing scrutiny from the UK Gambling Commission and rival-led investigations — has raised new obstacles.

The NGCB’s new notice lists ‘presumptively prohibited’ jurisdictions and signals tougher expectations for B2B suppliers, effectively widening the scope of where suppliers must demonstrate compliance. Analysts warn Evolution may need further ring-fencing of its content or could be forced to abandon the Galaxy deal if it cannot satisfy Nevada’s stricter standards. The outcome of Evolution’s UKGC review (and the fallout from the Playtech-commissioned Black Cube revelations) could also influence US regulators’ views.

Key Points

Evolution agreed to buy Galaxy Gaming for $85m in July 2024, but the deal remains uncompleted with a merger deadline extended to July 2026.
Remaining regulatory approvals are understood to be in Nevada and Louisiana; Evolution expects those in Q1 2026.
The Nevada Gaming Control Board issued guidance naming ‘presumptively prohibited’ jurisdictions and enforcement measures (IP blocking, DPI, payment blocking), raising the bar for supplier compliance.
Regulators are increasingly holding suppliers accountable for activity in unregulated or grey markets — not just operators — prompting ring-fencing efforts by Evolution in Europe.
Analysts say Evolution may need to implement more ring-fencing or risk withdrawing from the Galaxy acquisition; an adverse UKGC decision could create contagion risks for US licensing.

Context and relevance

This story sits at the intersection of M&A strategy and regulatory convergence in iGaming. As regulators worldwide tighten oversight, suppliers like Evolution face greater scrutiny over content distribution and access to grey markets. That shift affects licensing timelines, deal certainty and the practical ability to operate across multiple jurisdictions — particularly in the US, where state regulators like Nevada are now leading the charge.

Why should I read this?

If you work in US iGaming, payments, supplier partnerships or M&A — this matters. It’s a quick way to understand why a headline deal isn’t closed, how Nevada’s new guidance raises the stakes for suppliers, and what that might mean for other purchases or licences coming through the system. In short: heads-up — regulatory hurdles could slow or scupper deals you care about.

Author style

Punchy: this is a tight, high-stakes regulatory drama that could reshape supplier M&A timelines. Read the detail if you need to gauge risk on licences, partnerships or strategic US expansion moves.