Betsson Expects Q1 Revenue Decline as Regulated Share Hits Record

Betsson Expects 3 Percent Revenue Decline in Q1 2026 – Higher Share of Regulated Markets Weighs on Profitability

Key Takeaways

• Betsson expects first quarter 2026 revenue of €285 million, down 3 percent year on year.
• The share of revenue from locally regulated markets reached a record 73 percent.
• Operating income is projected to fall 47 percent to €34 million.
• Online casino revenue is set to decline 4 percent, while sportsbook revenue remains stable.
• Gaming tax expense increased 18 percent to €53 million.

Revenue Declines Despite Record Share of Regulated Market Income

Betsson expects to report revenue of €285 million for the first quarter of 2026, representing a 3 percent decline compared to the same period last year. The company disclosed the preliminary figures ahead of its full quarterly report scheduled for 24 April.

A notable development is the record share of revenue generated from locally regulated markets, which reached 73 percent in the quarter. This compares to 59 percent in the prior year period and marks the highest quarterly level for the company.

For users and operators following regulatory trends, the shift indicates that a larger portion of Betsson’s business now comes from jurisdictions with established licensing frameworks and tax obligations. At the same time, this shift has had a direct impact on costs and margins.

Product Segments: Casino Down, Sportsbook Stable

Online casino remains Betsson’s largest product segment, with expected revenue of €204 million for the quarter. This represents a 4 percent decrease compared to the first quarter of 2025.

Sportsbook revenue is expected to remain at €80 million, in line with the prior year. The sportsbook margin improved slightly to 8.4 percent, compared to 8.0 percent in the same quarter last year.

Revenue from other gaming products declined to €1 million. In the B2B segment, license revenue fell 43 percent to €51 million. The company attributed the B2B decline primarily to lower revenue from one customer.

According to Betsson, the affected B2B customer has experienced stabilization in average activity levels since early December. The company stated that it aims to grow B2B revenue with both existing and new partners over time.

Regional Performance: Latin America Expands, CEECA Contracts

Regionally, the Central and Eastern Europe and Central Asia region remained Betsson’s largest market. However, revenue in that region declined 24 percent to €96 million in the first quarter.

Latin America reported revenue growth of 24 percent to €93 million, narrowing the gap with CEECA and becoming the second largest regional contributor. Western Europe also recorded growth, with revenue rising 9 percent to €61 million.

In contrast, revenue from the Nordic countries decreased 18 percent to €31 million. Revenue from the Rest of the World segment increased 33 percent to €4 million, although from a relatively small base.

For international users monitoring market availability and regulatory exposure, these regional shifts highlight changing revenue dynamics within Betsson’s portfolio.

Higher Gaming Taxes and Lower Margins Reduce Operating Income

The increased share of locally regulated revenue contributed to higher gaming tax expenses. Gaming tax for the quarter rose 18 percent to €53 million.

At the same time, gross margin declined to 57.6 percent, compared to 64.0 percent in the first quarter of 2025. The combination of higher taxes and lower margin led to a significant reduction in operating income, which is expected to fall 47 percent to €34 million.

Betsson’s president and CEO Pontus Lindwall stated that the B2C business continues to perform well overall and contributes significantly to operating income. However, he noted that the company is investing in several B2C markets that are not yet profitable. These investments negatively affect total EBIT by approximately €10 to €15 million per quarter.

The company indicated that it continuously monitors and evaluates the performance and prospects of these markets.

Early Second Quarter Trading and Share Price Reaction

Betsson also provided an update on trading in the second quarter. Average daily revenue so far in the quarter, up to and including 8 April, has been 9 percent higher than the average daily revenue of the full second quarter of 2025.

During the early part of the second quarter, the sportsbook margin has been higher than the rolling average of the past eight quarters.

Following the announcement of the preliminary results, shares in Betsson AB were trading 3.11 percent higher at SEK92.90 in Stockholm on Friday.

The company will publish its full first quarter 2026 results on 24 April.

Our Assessment

Betsson’s preliminary first quarter figures show a modest decline in overall revenue alongside a record share of income from locally regulated markets. The higher proportion of regulated revenue increased gaming tax expenses and contributed to lower gross margin and operating income. Regional performance varied, with strong growth in Latin America offsetting declines in CEECA and the Nordics. Early second quarter trading indicates higher average daily revenue and improved sportsbook margin compared to historical averages.