Evolution Galaxy Gaming Acquisition Faces Nevada Hurdles

Evolution’s planned $85 million acquisition of Las Vegas-based Galaxy Gaming faces mounting regulatory uncertainty as Nevada regulators implement new guidance that could force additional compliance measures from the live casino supplier.

Deal Timeline Extended Amid Approval Delays

Evolution announced its agreement to acquire table gaming supplier Galaxy Gaming in July 2024, positioning the transaction as a strategic move to strengthen its US market presence. However, the deal remains unclosed nearly 18 months later, with the companies extending the merger deadline to July 2026 last autumn.

Outstanding regulatory approvals in Nevada and Louisiana are now expected in Q1 2026, according to Evolution. The delays occur against a backdrop of sustained regulatory scrutiny facing the supplier in the US market, including controversies over its business practices in prohibited jurisdictions.

Nevada Issues New Supplier Guidance

The Nevada Gaming Control Board (NGCB) escalated its regulatory expectations for online gaming operators and suppliers earlier this month through new industry guidance addressing prohibited jurisdictions.

The NGCB stated: “Certain jurisdictions are presumptively prohibited jurisdictions. There is a presumption that a jurisdiction is prohibited if the jurisdiction: (1) has applicable laws that expressly prohibit online gaming offered either from within or outside the Jurisdiction; and/or (2) has taken intra-jurisdictional or extra-Jurisdictional enforcement actions against players or companies offering online gaming.”

The regulator specified that enforcement actions may include criminal or civil proceedings, IP address blocking, DNS blocking, Deep Packet Inspection, Layer-7 filtering, cease and desist orders, banking actions, and payment blocking.

Jurisdictions identified as “presumptively prohibited” include Australia, China, Cuba, India, Indonesia, Iran, Russia, Saudi Arabia, Syria, and Thailand.

Regulatory Convergence and Value Chain Accountability

Industry analysts view the Nevada guidance as part of a broader global trend in which regulators increasingly hold the entire gaming value chain—not just operators—accountable for unregulated market activity.

One analyst, speaking under condition of anonymity, explained: “I think it’s the direction of travel in many countries because people are realising that markets are not separate.”

The analyst noted the NGCB’s language opens the door for additional jurisdictions to be added to the prohibited list, shifting the burden of proof to licensees to demonstrate a jurisdiction should not be considered prohibited.

“You might, for example, see a situation where Japan thinks their market should be a prohibited jurisdiction and they want to hold people in the value chain accountable,” the analyst said. “And now they can call up the Nevada regulator and say, ‘Hey, we should be on this list.'”

Potential Impact on Galaxy Gaming Deal

Analysts at Rothschild & Co Redburn argued in a recent note that the new Nevada guidance presents Evolution with a critical choice: implement additional ring-fencing measures for presumptively prohibited jurisdictions or withdraw from the Galaxy Gaming acquisition.

“In our view, Evolution will now be forced to implement additional ringfencing of the NGCB’s list of ‘presumptively prohibited’ jurisdictions or alternatively withdraw from its acquisition of Galaxy Gaming,” the analysts stated.

They suggested the NGCB, as a conservative regulator, may delay its decision on the Evolution-Galaxy approval until the UK Gambling Commission completes its ongoing review of Evolution’s licence—a process initiated in December 2024 that prompted the supplier to begin ring-fencing its content from unregulated European sites.

Evolution Remains Optimistic

Sources close to Evolution emphasized the Nevada guidance includes provisions allowing “a reasonable period to achieve compliance,” suggesting flexibility in regulatory expectations. They noted Evolution has not issued any statement changing its position on expected approvals, indicating continued confidence the transaction will complete.

The NGCB guidance represents a potential new regulatory challenge for Evolution’s US expansion strategy as the company navigates multiple concurrent licence reviews and acquisition approvals across different jurisdictions.

Source: Next io