Betsson Revenue Hits Record €326.5M but Profit Falls 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 reaching 8%, according to the company’s interim report.

However, EBITDA fell 23% to €63.4 million ($68.5 million), while operating income declined 31% to €46.1 million ($49.8 million).

Casino enjoyed a particularly strong quarter, with revenue rising 14% to a new quarterly record. By contrast, sportsbook revenue rose just 1%, dragged down by lower margins.

Betsson recorded a 40% year-on-year increase in total active customers, reaching 1.9 million. User activity was buoyed in part by lingering momentum from major international football events held earlier in the summer.

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 fell 39%—a drop of approximately €30 million ($32.4 million)—year-on-year.

The decline was largely attributed to reduced activity from a single major, unnamed B2B client.

While B2C revenue surged 28%, Öhman noted that this operational shift toward direct consumer channels negatively impacted overall gross profitability.

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

Direct gaming taxes increased by approximately €28 million ($30.2 million), pushing the group’s overall gross profit margin down from 64% to 56%.

CEO Pontus Lindwall acknowledged the structural pressure but emphasized that the transition toward regulated jurisdictions remains the right long-term path.

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

“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 explained.

Lindwall maintained that this conservative posture protected the company from heavy promotional write-downs.

“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 added that he expects Brazilian authorities to refine the regulatory Framework over time.

“Our belief is that the market will not be closed forever as it is as of now… We think that the market will open up in one way or the other.”

Elsewhere in Latin America, performance remained strong. Regional revenue jumped 52% during the quarter to hit a new record, led by market gains in Argentina, Peru, and Colombia. Latin America now represents 36% of Betsson’s total group revenue.

Looking ahead, Lindwall noted that the company has seen a “strong start” to the fourth quarter, with average daily revenue up 11% year-on-year through the opening weeks of October.