Betsson posted record group revenue of €1,197.0 million in 2025, an 8% increase on the prior year’s €1,106.6 million. Operating income fell 1% to €253.1 million and the operating margin contracted to 21.1% from 23.2%, as rising gaming taxes and increased spending on product and technology offset top-line growth.
Revenue Growth, Margin Contraction
Full-year gross profit rose 5% to €755.5 million, but the gross margin slipped to 63% from 65%. EBITDA came in at €313.7 million, down 1% year-on-year, with an EBITDA margin of 26.2% against 28.6% in 2024. Net income fell marginally to €182.4 million from €183.7 million, with earnings per share at €1.29 (2024: €1.32).
The margin pressure reflected two structural headwinds. The share of revenue from locally regulated markets reached 68% in Q4, up from 60% a year earlier — the highest level in Betsson’s history. Higher regulated revenue comes with higher gaming taxes. The company also recorded increased personnel costs tied to in-house product development, with capitalised development expenditure rising to €41.6 million from €31.2 million. Total investments in tangible and intangible fixed assets reached €64.6 million for the year.
In the fourth quarter, the margin compression was most visible. Revenue fell 1% to €303.9 million while EBIT dropped 24% to €53.2 million, partly due to lower B2B licence revenue following weaker performance at one of Betsson’s B2B customers. Gaming taxes in Q4 alone reached €53 million, up from €43 million a year earlier.
“Lower B2B revenue, higher gaming taxes and continued investments in product and technology had a negative impact on profitability,” said Pontus Lindwall, President and CEO. “Despite the lower profitability, Betsson stands strong operationally with a competitive product offering, increasing brand awareness and technology at the forefront.”
Key Financial Data
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue (€m) | 1,197.0 | 1,106.6 | +8% |
| Gross profit (€m) | 755.5 | 719.7 | +5% |
| Gross margin | 63.1% | 65.0% | −1.9pp |
| EBITDA (€m) | 313.7 | 316.6* | −1% |
| EBITDA margin | 26.2% | 28.6% | −2.4pp |
| EBIT (€m) | 253.1 | 256.7 | −1% |
| EBIT margin | 21.1% | 23.2% | −2.1pp |
| Net income (€m) | 182.4 | 183.7 | −1% |
| EPS (€) | 1.29 | 1.32 | −2% |
| Casino revenue (€m) | 867.5 | 795.4 | +9% |
| Sportsbook revenue (€m) | 323.5 | 303.4 | +7% |
| Operating cash flow (€m) | 215.6 | 272.9 | −21% |
| Cash and equivalents (€m) | 322.7 | 308.5 | +5% |
| Equity (€m) | 894.0 | 857.7 | +4% |
| Avg. active customers (thousands) | 1,375.8 | 1,347.9 | +2% |
| Registered customers (thousands) | 31,134.6 | 29,353.1 | +6% |
| Proposed dividend per share (€) | 0.66 | 0.657* | +0% |
*2024 EBITDA and dividend figures derived from reported metrics. 2024 ordinary dividend was €0.657; full FY2024 dividend including extraordinary was €0.76.
Regional Performance
Latin America was the standout growth driver, with revenue rising 26% to €320.1 million and accounting for 27% of group total. Western Europe grew 26% to €232.7 million as Betsson’s Italian expansion, including the acquisition of BetClic Italy and the award of two new licences under Italy’s relaunched online gambling framework, contributed to volume. CEECA — Betsson’s largest segment — edged up 2% to €480.3 million. The Nordics declined sharply, with revenue falling 21% to €141.7 million, continuing a multi-year contraction in what was historically the group’s core region. Rest of World revenue grew 42% to €22.5 million, though from a small base.
Regional Revenue Breakdown (€m)
| Region | FY2025 | FY2024 | Change |
|---|---|---|---|
| CEECA | 480.3 | 472.8 | +2% |
| Latin America | 320.1 | 253.9 | +26% |
| Western Europe | 232.7 | 184.5 | +26% |
| Nordics | 141.7 | 179.5 | −21% |
| Rest of World | 22.5 | 15.9 | +42% |
Casino Leads, Sportsbook Mixed
Casino remained the dominant product, generating €867.5 million in full-year revenue, up 9%, and representing 72.5% of group total. Sportsbook revenue rose 7% to €323.5 million on an annual basis, but the segment weakened in Q4: sportsbook revenue fell 9% in the quarter to €82.7 million, gross turnover declined 14% to €1.47 billion, and the sportsbook margin fell to 8.8% from 9.8% in Q4 2024.
Betsson launched more than 550 new casino games in Q4 alone, including titles with temporary exclusivity across its brands, alongside continued investment in live casino content. The company describes its sportsbook as market-leading in several focus markets following sustained in-house development, and the offering is distributed both directly to consumers and as a B2B solution to third-party operators.
Regulatory Exposure and Tax Headwinds
Regulatory developments across multiple European markets contributed to the margin squeeze and are set to intensify into 2026. The UK will raise online casino tax from 21% to 40% from 1 April 2026, with a new 25% levy on online sports betting following from 1 April 2027. Betsson has called the combined change one of the most significant in the market globally. In Latvia, the online gambling tax increased to 15% of GGR from January 2026, having already been raised from 10% to 12% earlier in the year. Brazil, which issued Betsson a local licence in February 2025 and where the group launched its product offering in April, saw gambling taxes raised from 12% to 15% of GGR at the end of December, with the increase to be phased in from 2026.
Betsson also flagged concerns about the direction of European regulation. In its annual report, the company said regulatory changes in several European countries had introduced restrictions that were driving players toward unlicensed operators, weakening channelisation and reducing tax receipts. The group holds local gaming licences in 24 countries following the addition of Brazil and Paraguay in 2025. New opportunities in Finland are on a longer timeline: parliament approved a new open licensing framework in December, with B2C licence applications opening in March 2026 and the framework entering into force in July 2027.
For context on how peers are navigating the same environment, see Evolution FY2025: revenue flat, EBITDA down 9% as European regulatory pressure mounts and UK confirms major gambling tax increases: online casino to 40%, sports betting to 25%.
Balance Sheet and Capital Returns
The balance sheet remains solid. Cash and cash equivalents closed at €322.7 million (2024: €308.5 million), equity stood at €894.0 million, and the equity/assets ratio was 67%. Net debt to EBITDA was −0.5x, reflecting a net cash position. Outstanding bond loans totalled €173.2 million following a November refinancing in which Betsson issued a new four-year €75 million senior unsecured bond at EURIBOR plus 275 basis points — the tightest credit spread in the company’s history — repurchasing all bonds in the 2023/2026 series in the process.
The board proposed an ordinary dividend of €0.66 per share for 2025, corresponding to a total transfer to shareholders of €90.9 million. A share buyback programme of up to €40 million was initiated in October 2025. Total shareholder returns for 2025, including the proposed dividend and initiated buybacks, amounted to €131 million, up from €104 million the previous year.
Operating cash flow fell to €215.6 million from €272.9 million in 2024, reflecting higher tax payments and working capital movements.
Post-Period Activity
On 12 March 2026, Betsson entered into an agreement to acquire Rhino Entertainment Group’s B2C operations licensed in Canada, along with certain B2B technology assets, for approximately €64.5 million. The acquired business generated pro forma EBITDA of €13.7 million in 2025. The deal will be financed from existing cash.
Preliminary Q1 2026 results, published on 9 April, indicate continued pressure. Revenue is expected at €285 million, down from €294 million in Q1 2025, with EBIT expected at €34 million, down from €64 million. The B2B revenue decline — driven by the same customer that impacted Q4 2025 — accounts for a significant part of the shortfall, with B2B licence revenue at €51 million against €90 million a year earlier. Gaming taxes reached €53 million in the quarter, up from €45 million. The share of locally regulated revenue rose to 73%, the highest ever recorded by the group. Average daily revenue in early Q2 2026 has been 9% higher than the Q2 2025 full-quarter average, per the preliminary update.
Lindwall pointed to the FIFA World Cup, scheduled for later in 2026, as a catalyst: Flutter and other large operators have made similar statements about the tournament’s potential to drive acquisition and sportsbook volumes. Whether Betsson can recover its margin profile will depend on whether operating leverage from product investments materialises and whether sportsbook volumes normalise once a major global sporting event is in play.
Source: Betsson AB
