Betsson’s record revenue masks 44% profit slide

• Q3 revenue rises 10% to a record €326.5m on 14% casino growth.
• Net income falls 44% to €28.2m as betting duties reach €69.4m.
• Latin America grows 52% and generates 36% of Q3 group revenue.

Betsson AB lifts quarterly revenue to a record €326.5m in Q3 2026, with casino and Latin America driving growth.

Higher gaming taxes, a weaker sportsbook margin and a sharp fall in B2B licence revenue cut net income 44% to €28.2m, the Stockholm-listed operator reported on 22 October.

Casino does the work

Casino revenue rose 14% to €253.5m and accounted for 77% of the group total, according to Betsson’s interim report. Sportsbook revenue grew 1% to €71.8m. Sportsbook turnover rose 8% to €1.37bn, but the sportsbook margin fell to 8.1% from 8.8%.

Organic growth came in at 8%. Active B2C customers rose 40% to a record 1.9 million, supported by the FIFA World Cup and the start of Europe’s major leagues. Betsson added 478 new casino games during Q3, 40 of them with a period of exclusivity for the group’s brands.

Pontus Lindwall, President and CEO, Betsson AB, said:

“Revenue also reached a new all-time high for a single quarter, which is particularly positive given that the sportsbook margin was considerably lower than in the second quarter. Instead, growth was driven by the casino product.”

Latin America leads

Latin America is now Betsson’s largest region, with revenue up 52% to a record €116.1m, or 36% of Q3 group revenue. Argentina, Peru and Colombia all grew strongly across casino and sportsbook. Lindwall credited World Cup marketing for the gains in Peru and Argentina.

Western Europe rose 14% to a record €64.8m, led by Italy. Rest of World revenue more than doubled to €13.7m after Betsson consolidated Rhino Entertainment Group in August, at a preliminary purchase price of €73.1m.

CEECA fell 17% to €99.2m on weaker B2B licence revenue, though B2C revenue grew in Croatia, Georgia and the Baltics. The Nordics dropped 10% to €32.7m on declines in Sweden and Denmark.

B2B licence revenue fell to €46.7m from €76.9m, mainly because of one customer, a problem that has weighed on the unit since Betsson’s Q1 profit warning. B2B now makes up 14% of revenue, against 26% a year ago. Betsson expects Rhino’s front-end and middleware technology to drive incremental licensing revenue.

Margins take the hit

EBITDA fell 23% to €63.4m, and the EBIT margin narrowed to 14.1% from 22.6%. Cost of services rose to €145.4m from €106.0m, mainly on higher gaming taxes and payment provider fees, pulling gross margin down to 55.5% from 64.2%.

Locally regulated markets generated 78% of revenue, up from 64% a year earlier. Betting duties climbed to €69.4m from €41.4m. Marketing spend rose 21% to €41.6m, driven by activity in Latin America.

Lindwall said:

“Operating income (EBIT) amounted to EUR 46 million, an increase compared with the previous quarter. The operating margin also improved slightly, despite a considerably lower sportsbook margin during the quarter.”

Regulation sets the pace

After the government pulled the plug on online gambling in Brazil on 25 September, Betsson’s local subsidiary suspended registrations, deposits and all marketing.

The ban needs congressional approval within 120 days and faces constitutional challenges. Existing licences expire on 25 October unless it is suspended or modified. Competitor Entain reported a 36% fall in Brazil revenue in its Q3 trading update.

Betsson has room to respond. It ended September with a net cash position of €98.3m and an undrawn €75m credit facility. Average daily revenue in Q4 up to 18 October ran 11% above last year’s Q4 average, despite a sportsbook margin significantly below its average for the past eight quarters.

The year-end report on 4 February 2027 will show how much of that reaches profit. Betsson has built scale in Latin America and bought it in Canada. Turning that scale into earnings growth now depends as much on finance ministries as on players.