Betsson Forecasts Profit Decline Amid European Tax Hikes

(AsiaGameHub) –   The Swedish gambling operator is feeling the effects of tax increases in Europe.

Sweden.- Betsson AB has issued a preliminary trading update for the first quarter of 2026, warning investors of squeezed margins in a number of key markets. The online gambling firm listed in Stockholm expects group revenue to be €285m, a 3 per cent decrease compared to the €294m reported in Q1 2025.

EBIT is forecast to drop by 47 per cent to €34m. The company cites a changing revenue mix and increased expenses, especially from higher taxes, for this decline. Revenue grew in Latin America (€93m, up from €75m) and Western Europe (€61m, up from €56m), but fell in the CEECA region (€96m, down from €122m) and the Nordics (€31m, down from €38m).

Sportsbook turnover remained stable at €80m, however, casino revenue declined by €8m to €204m. The B2B segment experienced the most significant impact, with revenue falling to €51m from €90m.

Despite investor worries regarding the B2B performance, president and CEO Pontus Lindwall remained positive. He stated: “Our B2B business continues to be weighed down by lower revenue at one of our customers. However, since the start of December, this B2B customer has seen a stabilisation in average activity levels. In the slightly longer term, I am excited about growing our B2B revenue with existing and new partners, as we continue to follow our strategy to generate shareholder value over time.”

Regarding the consumer business, Lindwall showed comparable assurance: “Our B2C business continues to perform well overall with good growth and significant contribution to operating income. Nevertheless, we are investing in several B2C markets that are not yet profitable, negatively affecting total EBIT by approximately €10-15m on a quarterly basis. We still believe that these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects.”

For the full year 2025, Betsson posted an 8 per cent revenue increase to €1.197bn, but earnings dipped by 1 per cent to €313.7m, indicating the initial impact of greater tax pressures. Early trading in the second quarter has been encouraging, with average daily revenue rising 9 per cent year-on-year up to April 8, and sportsbook margins outperforming the eight-quarter average, according to the company.

Betsson is scheduled to release its complete Q1 2026 interim report on April 24. The company has not provided any official financial guidance for the current year.