Betsson's core earnings fall 23% as gaming taxes rise, B2B income drops

More of Betsson’s revenue now comes from locally regulated markets, where gaming taxes are higher, and less from supplying other operators.

Betsson’s third-quarter core earnings fell 23% despite record revenue, Yogonet reported, citing the company’s earnings call. Higher gaming taxes, lower B2B licensing income and rising costs weighed on profitability, and the EBITDA margin narrowed from 27.9% to 19.4%.

By the numbers

• Revenue: up 10% on a year earlier, with organic growth of 8%.
• EBITDA (earnings before interest, tax, depreciation and amortisation): €63.4m, down from €82.5m.
• Operating income: €46.1m, down 31%.
• Betting duties: €69.4m, up from €41.4m.
• Locally regulated markets: 77.7% of revenue, against 63.8% a year earlier.
• Active customers: a record 1.87 million, up 40%.

What drove it

Chief financial officer Martin Öhman said B2B revenue fell 39%, or about €30m, largely because an unnamed major client reduced its activity. The report does not say which client. B2C revenue rose 28%, but higher direct gaming taxes cut the gross profit margin from 64% to 56%.

Latin America grew 51.8% to €116.1m, 36% of group revenue, led by Argentina, Peru and Colombia. Nordic revenue fell 10% to €32.7m.

On Brazil’s recent gambling ban, chief executive Pontus Lindwall said Betsson’s limited marketing spending had left it less exposed than competitors.

What’s next

Betsson reported average daily revenue through 18 October was 11% above the fourth-quarter 2025 average. Sportsbook margins remained below their eight-quarter average.