The drop in revenue comes as Betsson’s share of revenue from locally regulated markets reaches a record high
Betsson expects to report a 3 per cent drop in revenue to €285 million for the first quarter of 2026, with a record share of revenue from locally regulated markets.
In its preliminary results for the first quarter, Betsson said that revenue from online casino is expected to be 4 per cent lower than the same period last year at €204 million, with sportsbook revenue at the same level as last year at €80 million, from a slightly higher sportsbook margin of 8.4 per cent (Q1 2025: 8.0 per cent).
Revenue from Other gaming products fell to just €1 million, while License revenue for the B2B business declined by 43 per cent to €51 million, primarily driven by lower revenue at one B2B customers.
The Central and Eastern Europe and Central Asia (CEECA) region remained Betsson’s largest market, although Q1 revenue was down 24 per cent to €96 million. Latin America was just behind as revenue increased by 24 per cent to €93 million, while Western Europe revenue rose 9 per cent to €61 million. Revenue from the Nordics decreased by 18 per cent to €31 million and Rest of the World revenue rose 33 per cent to €4 million.
The share of revenue from locally regulated markets was 73 per cent, up from 59 per cent in the prior year period and the highest ever in a quarter.
This contributed to an 18 per cent increase in gaming tax expense to €53 million, which combined with a lower gross margin of 57.6 per cent (Q1 2025: 64.0 per cent) pushed operating income for the first quarter down 47 per cent to €34 million.
“Our B2C business continues to perform well overall with good growth and significant contribution to operating income,” said Betsson president and CEO Pontus Lindwall. “Nevertheless, we are investing in several B2C markets that are not yet profitable, negatively affecting total EBIT by approximately €10-15 million on a quarterly basis.
“We still believe that these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects. Our B2B business, on the other hand, continues to be weighed down by lower revenue at one of our customers.
“However, since the start of December, this B2B customer has seen a stabilisation in average activity levels. In the slightly longer term, I am excited about growing our B2B revenue with existing and new partners, as we continue to follow our strategy to generate shareholder value over time.”
Betsson added that average daily revenue so far in the second quarter of 2026, up until and including 8 April, has been 9 per cent higher than the average daily revenue of the full second quarter of 2025.
During the start of Q2 2026, the sportsbook margin has been higher than the rolling average of the past eight quarters.
Betsson will publish its results for the first quarter 2026 on Friday 24 April.
Shares in Betsson AB (STO:BETS_B) were trading 3.11 per cent higher at SEK92.90 per share in Stockholm Friday following the announcement.