Betsson’s commitment to its long-term business strategy in Italy has begun to yield significant results, contributing to a 10.3% increase in the company’s Western European revenue for the first quarter of 2026. The Swedish gaming firm’s Q1 financial results, released on Friday, highlight robust performance in Italy, which achieved record levels of revenue, turnover, and deposits. This development is notable given the broader market context where overall group revenue saw a slight year-on-year decline of 3%. This expansion in Italy holds regulatory and market significance, underscoring Betsson’s strategic positioning within locally regulated markets.
The Italian market stands as a testament to Betsson’s enduring strategy. CEO Pontus Lindwall noted in an interview that achieving profitability in such markets requires substantial investment in brand building and customer base expansion. Italy exemplifies this approach, as the company absorbed costs and operated at a loss for nearly a decade before turning a profit. These efforts align with forecasts from H2 Gambling Capital, predicting Italy’s online betting and gaming gross gaming revenue (GGR) to reach nearly €7 billion in 2026 and over €9.3 billion by 2030. Betsson is poised to capitalize on this anticipated growth.
Notably, Italy’s betting revenue experienced a 7% decline in Q1 2026, despite a resurgence in March. However, certain segments demonstrated resilience, with virtual betting increasing by 16%, even as horse racing continued to struggle. These market dynamics underscore the complexities of operating within Italy’s regulated gaming landscape.
Betsson’s Q1 group revenue amounted to €285.3 million, with a significant portion—73%—coming from locally regulated markets. This is a marked increase from the previous year, highlighting Betsson’s strategic shift towards these jurisdictions. Lindwall emphasized that aligning with local regulations is pivotal for future market dominance. He stated, “We anticipate the market will increasingly transition to local regulation, and maintaining a strong position within these markets is essential for long-term success.”
In terms of strategic growth, Betsson is progressing with its acquisition of Rhino Entertainment Group’s B2C business, following an agreement last month. This acquisition, pending regulatory approval, is expected to conclude by late Q2 or early Q3. Lindwall confirmed that mergers and acquisitions remain integral to Betsson’s growth strategy, with the company consistently evaluating new opportunities to bolster its market position.
The Latin American (LatAm) market continues to be a crucial area of focus for Betsson, contributing significantly to its revenue. While Q1 sportsbook revenue saw a modest 1% increase, casino revenue declined by 4%. Overall, Betsson’s earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 36% compared to the previous year, totaling €50 million. Despite these challenges, the LatAm region saw a 25% revenue growth, accounting for one-third of Betsson’s total revenue. Peru’s strong performance played a key role in this regional success.
Lindwall pointed out Betsson’s established brand presence in Peru, supported by strategic sponsorships and market integration of the company’s technology. He highlighted LatAm as a region where Betsson is actively investing, particularly in marketing and sponsorships, to sustain growth. “We have a solid foundation in LatAm markets like Peru, and our ongoing efforts are aimed at further strengthening our position,” Lindwall stated.
Looking ahead, Betsson aims to finalize its acquisition of Rhino Entertainment’s B2C business and continue expanding its footprint in both regulated European markets and emerging opportunities in LatAm. As the company navigates regulatory landscapes and market dynamics, these strategic initiatives will be instrumental in shaping its future trajectory. The company remains vigilant in monitoring regulatory changes and market trends, ensuring compliance and competitive positioning as it pursues further growth opportunities.
4.2/5
