Betsson has reported preliminary iGaming results for the first quarter of 2026, indicating a year-on-year decline in both revenue and operating income, alongside a shift in geographic and product mix.
Group revenue is expected to reach €285 million for the period, compared to €294 million in Q1 2025, while operating income (EBIT) is projected at €34 million, down from €64 million in the prior-year quarter.
The iGaming operator attributed part of the change to variations in regional performance and a different balance between B2C and B2B revenue streams.
By region, iGaming revenue distribution shows Nordic markets contributing €31 million, down from €38 million in Q1 2025, while Western Europe increased to €61 million from €56 million.
CEECA Decline
Central and Eastern Europe and Central Asia (CEECA) declined to €96 million from €122 million, while Latin America rose to €93 million from €75 million.
Revenue from the rest of the world totalled €4 million, compared to €3 million in the previous year. The company noted that these figures reflect end-user residence and include both consumer-facing iGaming activity and B2B licence income.
Casino iGaming revenue totalled €204 million, compared to €212 million in Q1 2025, while sportsbook revenue remained stable at €80 million.
Other iGaming products contributed €1 million, down from €2 million. The sportsbook margin for the quarter was 8.4 percent, compared to a flat eight percent in the same period last year.
B2B licence revenue declined to €51 million from €90 million, representing approximately 18 percent of total group revenue compared to 31 percent a year earlier.
Lower Margins
The decrease was primarily linked to lower activity from one B2B customer, impacting the overall iGaming revenue mix.
The share of revenue generated from locally-regulated iGaming markets increased to 73 percent, up from 59 percent in Q1 2025. This shift resulted in higher gaming taxes, which rose to €53 million from €45 million.
The higher proportion of regulated market revenue, combined with reduced B2B licence income, contributed to a lower gross margin of 57.6 percent, compared to 64 percent the previous year, and influenced overall profitability.
Looking ahead, Betsson reported that average daily iGaming revenue in Q2 2026, to date, up to and including April 8, was nine percent higher than the average daily revenue recorded across the full second quarter of 2025.
Better Prospects
The company also noted that sportsbook margins at the start of Q2 2026 were above the rolling average of the previous eight quarters, indicating an improved short-term performance trend within its iGaming operations.
Pontus Lindwall, President and CEO of Betsson AB commented: “Our B2C business continues to perform well overall with good growth and significant contribution to operating income.
“Nevertheless, we are investing in several B2C markets that are not yet profitable, negatively affecting total EBIT by approximately €10 million to €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.”
