Betsson Revenue Hits Record €326.5M But Profit Falls 44% as Taxes Rise

Betsson (STO: BETS-B) reported record quarterly revenue of €326.5 million ($381 million) in Q3 2026, but rising gaming taxes and declining B2B revenue contributed to a sharp fall in profitability.

Revenue increased 10% year-on-year, with organic growth of 8%, according to the company’s interim report. 

However, EBITDA fell 23% to €63.4 million ($74 million), while operating income declined 31% to €46.1 million ($54 million).

Casino enjoyed a particularly strong quarter, up 14% to a new quarterly record. But sportsbook revenue rose just 1%, weakened by declining margin.

Betsson recorded a 40% increase in total active customers, to 1.9 million. The rise was supported by the final stages of the FIFA World Cup.

The company noted that Rhino Entertainment Group, which Betsson acquired in August, had already made a positive contribution to revenue during the quarter.

B2B Decline and Record Gaming Taxes Hit Margins

During Betsson’s earnings call, CFO Martin Öhman revealed that B2B revenue declined 39%, or approximately €30 million ($35 million), year-on-year.

The decline was largely attributed to reduced revenue from one major but unnamed B2B customer.

While B2C revenue was up 28%, Öhman noted that this shift in the group’s revenue mix had negatively impacted profitability.

“We have seen for quite some time now that we are growing our locally regulated revenue, which come with increased gaming taxes,” he told analysts. “We have also seen a shift towards more B2C revenues rather than B2B revenues. So there’s a mix effect in there.”

Gaming taxes increased by approximately €28 million ($33 million), while gross profit margin declined from 64% to 56%.

CEO Pontus Lindwall acknowledged the challenge but argued that the shift toward regulated markets was expected.

“We know that these revenues come with a different cost structure, and we pay a lot of tax. We have all-time high in gaming taxes this quarter, amongst many other all-time highs,” he said during the call.

“But we believe that we will be able to grow the B2B business as well going forward, which should have a positive impact on the gross margin.”

Cautious Brazil Strategy Vindicated

During the earnings call, Lindwall said Betsson would be less impacted by Brazil’s recent gambling ban than other competitors. He said the company had deliberately avoided a heavy marketing spend in the country.

“Of course, we have invested small amounts of money to be in the market, but compared to some other operators, it is not even comparable what we have done,” he said.

Lindwall argued that the approach had protected Betsson from the impact of Brazil’s restrictions.

“Looking in the rear mirror, this is not something that we regret, that we have been careful in the market. It is actually the other way around.”

He also predicted that Brazil would eventually reverse course.

“Our belief is that the market will not be closed forever as it is as of now, because there are no good proof in the market that is a great way forward. We think that the market will open up in one way or the other.”

The picture is rosier elsewhere in Latin America, which remains Betsson’s strongest region. Revenue increased 52% during the quarter to a new record. Argentina, Peru, and Colombia were singled out as particularly strong markets. The region as a whole now accounts for 36% of group revenue.

Looking ahead, Lindwall said the company had enjoyed a “strong start” to the fourth quarter, with average daily revenue up 11% year-on-year.