Betsson’s Q1 update shows a company still growing in the right places, but paying more for every inch of that progress.
Profit Takes the Hit
Betsson posted Q1 revenue of €285.3 million, down 3% year-on-year, while EBITDA fell 36% to €50 million and operating income dropped 47% to €34 million. Net income landed at €25.5 million, compared with €48.4 million a year earlier.
The uncomfortable bit is that the top-line dip was modest, but the profit slide was not. That tells the real story: regulated growth is useful, but it is not cheap.
B2B Becomes the Awkward Guest
The main drag came from Betsson’s B2B arm, where revenue fell to €51.2 million from €90.2 million. Betsson said the decline was mainly tied to lower revenue from one B2B customer, which is the sort of concentration risk investors tend to notice after the bill arrives.
CFO Martin Öhman also pointed to higher gaming taxes, payment provider fees and licence-related costs as more revenue moved into locally regulated markets. Those locally regulated markets made up 72.6% of group revenue in Q1, up from 59.0% a year earlier.
Latin America Carries the Fun Part
Betsson’s B2C business gave the update a much better shine, with revenue up 15% year-on-year. Latin America led the charge, rising 24.7% to €93 million, helped by growth in Peru and Colombia.
For everyday online casino and sportsbook players, this matters because operators chasing growth in Latin America and other regulated markets usually bring heavier product investment with them. More local payment options, better apps, and sharper sportsbook features tend to follow the money.
The Nordics Keep Cooling Off
The Nordics were a different story. Revenue in the region fell 16.9% to €31.4 million, with Sweden and Denmark both down due mainly to weaker casino activity.
Western Europe offered a counterweight, rising 10.3% to €61.3 million, with Italy hitting record revenue levels across turnover and deposits. CEECA revenue fell 21.8%, though Betsson said B2C performance in markets such as Croatia, Greece, Georgia, Poland, Lithuania and Latvia remained positive.
The Player Product Still Gets Attention
Betsson added sportsbook upgrades during the quarter, including expanded Bet Builder functionality, AI-powered match previews and richer live stats. The company also flagged the 2026 FIFA World Cup as a likely activity driver, which is hardly a wild prediction for a sportsbook operator.
The group’s casino revenue fell 4% to €203.8 million, while sportsbook revenue edged up 0.6% to €80.2 million. Active customers rose 11% to 1.52 million, so the player base is still moving in the right direction even while margins are being squeezed.
Betsson Sticks With The Plan
CEO Pontus Lindwall made clear that Betsson does not plan to pull back from markets it sees as long-term winners, even where early investment is still hurting profit. Betsson estimates that investment in B2C markets not yet profitable reduces operating income by about €10 million to €15 million per quarter.
The company also agreed in March to acquire parts of Rhino Entertainment Group, including B2C operations with a Canadian licence and B2B technology assets, for about €64.5 million. The deal is expected to close in the second or third quarter of 2026, subject to approvals.
What It Means For Betsson
Betsson is not short of growth stories, but Q1 showed how quickly those stories can get expensive. Regulated markets bring credibility, local reach and safer long-term footing, but they also bring taxes, compliance costs and thinner margins.
For players, the upside is continued product spend and stronger local offerings. For Betsson, the challenge is simpler to say than to solve: turn its wider footprint into better returns before investors start asking whether growth is doing enough heavy lifting.
