Betsson posts record Q3 revenue as gaming taxes cut EBIT 31%

Betsson, the Stockholm-listed online casino and sports betting group, had the highest quarterly revenue in its history between July and September 2026, but made noticeably less money from it. Group revenue rose 10% to EUR 326.5 million (prior-year figure: EUR 295.8 million), or 8% on an organic basis, according to the interim report published on 22 October. Operating profit (EBIT) fell 31% to EUR 46.1 million (EUR 66.9 million), and net income dropped to EUR 28.2 million (EUR 50.1 million).

All figures in brackets below are the prior-year figures for the same period.

Casino carried the quarter

The growth came from casino, not sport. Casino revenue rose 14%, while sportsbook revenue edged up just 1% and the sportsbook margin, the share of stakes Betsson keeps after paying out winning bets, slipped to 8.1% (8.8%). CEO Pontus Lindwall noted in the report that revenue reached a record even though the sportsbook margin was considerably lower than in the second quarter.

Active B2C customers, meaning players using Betsson's own brands, reached 1.9 million (1.3 million). Lindwall put the rise at 40% and credited the FIFA World Cup and the start of the European football leagues for high activity, with customer deposits and total gaming turnover both up.

Latin America was the main driver. Revenue there rose by more than 50%, with Peru and Argentina singled out in the CEO comment. Betsson also completed its acquisition of Rhino Entertainment Group in early August, consolidated it and said it contributed positively to revenue and earnings. At the end of the quarter it relaunched its Belgian business under the Betsson name, replacing betFIRST; we covered the betFIRST rebrand when it was announced.

Why record revenue and lower profit can both be true

The short answer is tax and business mix. Speaking on the results call, as reported by Casino.org, CFO Martin Öhman said Betsson has for some time been "growing our locally regulated revenue, which come with increased gaming taxes", and that the business has shifted towards B2C revenue and away from B2B, where Betsson supplies technology and services to other operators. "So there's a mix effect in there," he said.

Both pieces showed up in the numbers he gave on the call. Direct gaming taxes rose by about EUR 28 million year on year, and gross margin fell from 64% to 56%. B2B revenue dropped 39%, roughly EUR 30 million, mostly because one large B2B client, which Betsson did not name, was less active. B2C revenue grew 28%.

Our explanation: in many regulated markets, gaming taxes are charged on the operator's gaming revenue, so the tax bill rises with revenue before any other cost is paid. A group that moves more of its business into regulated, taxed markets can therefore grow revenue and still keep less of each euro. "We pay a lot of tax. We have an all-time high in gaming taxes this quarter," Lindwall said on the call. He added that Betsson expects to grow its B2B business again, which "should have a positive impact on the gross margin".

The profit squeeze is not new this quarter. For January to September, revenue rose 3% to EUR 922.1 million (EUR 893.1 million), while EBIT fell 39% to EUR 122.3 million (EUR 199.9 million). Lindwall did point out that third-quarter EBIT was up on the second quarter and that the margin improved slightly.

Brazil, and a game with Inter Milan graphics

Lindwall also used the call to say Betsson would be less affected than rivals by Brazil's recent gambling ban, because it had kept its marketing spend in the country small. "Looking in the rear mirror, this is not something that we regret," he said, adding that he expects the market to "open up in one way or the other". For the background, see our coverage of Brazil's MP 1.394 betting ban in Congress and of Peru blocking 50 unauthorised operators.

On the product side, the report mentions Gates of Inter, a casino game made exclusively for Betsson with graphics based on its Inter Milan sponsorship. It is the third such sponsor-themed game, after versions built around Boca Juniors and Atletico Nacional.

What comes next

Betsson said October had started positively; on the call, Lindwall said average daily revenue in the opening weeks of the month was up 11% year on year. The company says it is "well positioned to return to earnings growth". In our view, whether that happens depends largely on how fast taxed revenue grows compared with the tax bill that comes with it, and on whether B2B income recovers.

For comparison with other operators and suppliers this reporting season, see Entain's Q3 2026 update and Hacksaw Gaming's Q3 2026 results.