Betsson reported Q1 2026 revenue of €285.3m (£248.4m), down 3% from €294m in Q1 2025.

The quarter, which came with a preliminary warning two weeks ago, was defined by continued strength in the B2C business alongside a sharp decline in B2B, weighing on overall profitability.

EBITDA for the Sweden-headquartered firm plummeted 36% year-on-year to €50m, with margin down to 17.5% (26.5%), while EBIT declined 47% YoY to €34m. Net income came in at €25.5m.

The main driver of the top-line pressure was B2B. Revenue from system delivery dropped to €51m from €90m, largely due to lower activity from one customer. 

The drop in numbers coincides with a recent revenue slump for many operators and suppliers across Sweden, including Evolution AB in its Q1 2026 results, alongside other Stockholm-listed businesses like Kambi and Raketech. 

Betsson’s numbers by region

In contrast with its B2B arm, B2C revenue grew 15% year-on-year. Growth was strongest in Latin America (up 25%), which now accounts for around one-third of group revenue, with Peru highlighted as a key contributor. 

It has been common for Swedish gambling companies to pivot towards markets like the Americas to offset increasingly stringent regulation in European heartlands.

Despite the abovementioned regulations, Western Europe also delivered double-digit growth for Betsson, increasing by 10.3% to €61.3m. Growth was led by Italy, while Central and Eastern Europe saw gains in markets such as Croatia and Greece, despite a huge dip in revenue to €95.7m from €122.3m.

Nordics declined 16.9%, mainly due to weaker casino activity in Sweden and Denmark, and now contributing only €31.4m to overall revenues.

“We keep investing in several B2C markets where we have not yet reached profitability, which reduces operating income by approximately €10-15m on a quarterly basis,” said Betsson Chief Executive Officer, Pontus Lindwall. 

“We continue to believe that these markets have the potential to become profitable, while we closely monitor and evaluate their development and future prospects.”

By product, casino revenue declined 4% to €203.8m, while sportsbook revenue increased slightly – by 1% – to €80.2m. Sportsbook margin improved to 8.4% from 8%.

The shift towards locally regulated markets continued, with 73% of revenue now coming from regulated jurisdictions compared to 59% in Q1 2025 and representing the company’s highest to date. 

While strategically important, this contributed to higher costs, including gaming taxes and compliance, and was a key factor behind the margin decline.

Operating cash flow was €58.1m and the group remained in a net cash position of €165m.

Rhino to develop B2B and B2C operations

During the quarter, Betsson agreed to acquire Rhino Entertainment Group’s B2C assets and certain B2B technology for €64.5m, as well as a license in Canada. Rhino’s B2C portfolio includes a number of assets, licences, staff and operational activities spread across Ontario and the rest of Canada.

On the deal, Lindwall continued: “The transaction is in line with our strategy to create long-term value through investments in both existing and new B2C markets, and through further developing our B2B offering. 

“The acquisition is expected to deliver economies of scale, improved profitability and enhanced growth opportunities in both business areas.”

Alongside the Rhino deal, Betsson also repurchased €20.3m of shares as part of its ongoing buyback programme.

All roads lead to the World Cup

Trading into Q2 has started slightly ahead of last year, with average daily revenue up 3.7% (6.9% adjusted) and sportsbook margins above recent averages.

The business has confirmed that it is continuing to leverage AI and improve its tech for its B2C arm ahead of the 2026 World Cup. Several enhancements to the customer experience have been introduced, including an expanded Bet Builder functionality, AI‑powered match previews and enriched live stats. 

Betsson also confirmed that by the end of Q1 2026, it had increased its workforce from 2,769 to 2,928, now employing staff across 70 different nationalities.

All roads lead to the summer and the World Cup, and the firm looks to have already put plans in place to ready itself ahead of what is set to be a busy Q2 and Q3. 

Lindwall concluded: “In June, the FIFA World Cup will begin, which we expect to contribute to increased activity and customer intake. 

“Our investments in recent years have strengthened our position and, with a competitive offering, a strong brand and a proven strategy, we are well positioned to capitalise on opportunities in the global online gaming market.”