Greek B2B gambling firm Intralot has estimated that tax headwinds will delay its UK-facing growth plans by a year.

Tax reforms recently introduced by the UK government will see remote gaming duty going up from 21% to 40% from April 2026, which will temporarily affect ASX-listed Intralot’s growth margins as it looks to gain more market share in the UK through the acquisition of Bally’s Interactive – operator of local iGaming offerings like Bally Casino, Virgin Games, and Jackpotjoy.

This was confirmed by ,interactiveCEO of Intralot, saying: “We still intend to deliver growth in the wagers accepted which combined with generosity reductions, marketing reductions and accelerated synergies will limit the tax increase impact and will only delay our growth plan by a year. We would therefore revise our 2026 EBITDA guidance in the range of €420m-€440m.

“Such tax increases have happened periodically in our markets and, historically, have led to market consolidation and market share growth for companies like Bally’s who have higher margins than other peers.”

Q3 revenues met with headwinds

The statement came as part of the company’s Q3 results, which showed Group revenues dropping to €74.5m (Q3 2024: €84.5m, down 11.8%) reflecting macroeconomic headwinds and currency fluctuations.

Q3 revenue from the Americas was down to €43.5m (€47.9m), Europe came in at €11.1m (€13.1m), with Rest of World revenue at €19.8m (€23.4m).

For the nine months ending September, Group revenues were €242.5m, down 2.9% from €249.8m the previous year. Adjusted Net Debt was reduced to €298.8m (9M 2024: €326.2m).

AEBITDA was down 1.6% YoY to €90.1m (9M’ 24: €91.6m), with margins remaining above last year levels at 37.2% (36.7%), withstanding volatile FX rates. Operating income came in at €23.1m, up 4.8% YoY. Operating expenses came at €69.4m, down 16.1% YoY (€82.7m) for the nine-month period.

Lottery games were the core revenue driver with 53.6% share of total B2B group revenue, followed by sports betting at 21.6%, video lottery terminals (VLTs) at 13%, and IT products and services at 11.8%.

Year-to-date revenue from the Americas came in at €144.2m, up from €143.4m last year. Europe was down to €33.4m (€35.7m), whilst RoW was at €64.9m (€70.6m).

Standalone Intralot Parent Company results showed revenue of €27.4m for the nine months ending September, up 8.5% YoY (9M’ 24: €25.2m). Gross profit increased by 11% YoY to €6.9m (€6.2m), with EBITDA at minus €400,000, though this was a slight improvement of the negative €600,000 the year prior.

Bally’s Interactive tips FY25 scales

Including Bally’s International Interactive, combined pro-forma 9M results stand at €790m in revenue and €320m in EBITDA – with the new entity projected to generate around €1.1bn in revenue for FY25 and EBITDA margins north of 39%.

Reeves concluded: “Bally’s International Interactive has been on track with its stated guidance in the same period having delivered around €548m in revenue with a hefty 43% Adjusted EBITDA margin for Q3. 

“Our guidance for full-year 2025 pro-forma the two entities annualised is expected in the area of €1,070m revenues and €435m in adjusted EBITDA, i.e. a combined margin of 40.65%.”