Betsson AB posted Q1 2026 revenue of €285.3 million, a 3% decline year-on-year, as a steep drop in B2B income and the financial drag of operating in more expensive regulated markets weighed on group profitability. Organic growth reached 4% when stripping out currency and portfolio effects.
Casino Down, Sportsbook Steady
Casino revenue, which accounted for 71% of total group revenue, fell 4% to €203.8 million. Sportsbook revenue edged up 1% to €80.2 million, with the margin improving to 8.4% from 8.0% in Q1 2025. Sportsbook turnover declined 21%, pointing to lower betting volumes despite the marginal revenue gain.
Profitability deteriorated more sharply than the top-line figures suggest. EBITDA fell 36% to €50.0 million. The EBITDA margin contracted to 17.5% from 26.5% in the prior year period. Operating income (EBIT) dropped 47% to €34.0 million. Net income came in at €25.5 million, against €48.4 million in Q1 2025.
B2B Revenue Collapse the Central Story
The group’s B2B segment generated €51.2 million in Q1, down from €90.2 million in the same quarter last year — a decline that CEO Pontus Lindwall attributed to a single large customer. Activity from that partner has stabilised since early December, but the damage to the quarterly comparison is significant. Betsson said it expects to grow B2B revenue with existing and new partners over the medium term, without providing specific targets.
That B2B shortfall is the primary driver of the profitability decline. The B2C business, by contrast, grew 15% year-on-year. Lindwall noted that ongoing investment in B2C markets that have not yet reached profitability is reducing operating income by approximately €10–15 million per quarter.
Regional Performance
Latin America was the standout region, with revenue up 24.7% to €93.0 million. Peru was the main driver, supported by growth in Colombia. Latin America now accounts for one-third of total group revenue. Western Europe grew 10.3%, with Italy reaching record levels in both turnover and deposits. The Nordics and CEECA both declined, with CEECA affected by the lower B2B licence revenue rather than weakness in its B2C operations — B2C in that region grew, with Croatia and Greece posting particularly strong results.
Revenue from locally regulated markets rose 20% and represented 72.6% of total igaming revenue, the highest share in Betsson’s history. That figure was 59% in Q1 2025. The shift reflects deliberate strategy but also carries a cost: locally regulated markets carry higher tax and compliance burdens than point-of-supply licensed operations, which Lindwall identified as a key explanation for the year-on-year margin compression.
For further context on the European regulatory environment shaping these dynamics, see the UK’s confirmed gambling tax increases and the Dutch channelisation rate falling below 50%, both of which illustrate the broader European regulatory cost pressures operators are managing.
Canada Acquisition and Q2 Trading Update
In March, Betsson agreed to acquire the B2C business of Rhino Entertainment Group in Canada, along with selected B2B technology assets, for approximately €64.5 million. The deal is expected to close in Q2 or Q3 2026, subject to regulatory approvals. Betsson framed the transaction as consistent with its strategy of expanding into new B2C markets and developing its B2B technology offering.
The company also released a partial Q2 trading update. Average daily igaming revenue up to 21 April was 3.7% higher than the daily average for the full Q2 2025, or 6.9% higher on a constant currency and acquisition-adjusted basis. The sportsbook margin in that period was above the eight-quarter average. The FIFA World Cup, which begins in June, is expected to support activity and customer acquisition in the coming months.
Product and Technology
Betsson continued development of Techsson, its proprietary platform, during the quarter. Updates to the sportsbook included expanded Bet Builder functionality and AI-driven features covering match previews and live statistics. The company is also rolling out a new front-end framework designed to improve flexibility and performance across its customer-facing products.
“Revenue for the B2C operations increased by 15 percent year-on-year. Growth was particularly strong in Latin America, where revenue rose by 25 percent and accounted for one-third of total Group revenue, primarily driven by positive performance in Peru. Western Europe also delivered double-digit growth, with Italy as the main driver, where we continued to gain market share in both sports betting and casino.”
— Pontus Lindwall, CEO, Betsson AB
The Q1 decline positions Betsson’s near-term outlook around two variables: stabilisation and recovery of B2B revenue from the affected partner, and whether the company’s pre-profitability B2C markets begin to generate returns within the timeframes management expects. The early Q2 trading data is encouraging, though the elevated sportsbook margin during that window may not be sustained through the full quarter.
Source: Betsson AB
