Betsson execs hail World Cup-driven success, downplay Brazilian ban
Buoyed by an announcement of record revenues, Betsson Group executives were in an upbeat mood during their 22 October earnings call, reporting that the company realized nearly €327 million (US$368 million)1 EUR = 1.1244 USD
2026-10-22Powered by CMG CurrenShift in earnings during the third quarter.
Among the causes for celebration was a spike in monthly active users. These leapt 40%, driven in part by World Cup play, which saw 800,000 bettors.
Betsson execs also announced several new branding initiatives, including new, Betsson-emblazoned jerseys for soccer’s Club Brugge and a partnership with tennis’ Davis Cup. They noted the introduction of an Inter-branded slot game online, one of 478 games debuted during the quarter, 40 of them exclusive to Betsson.
CEO Pontus Lindwall disclosed the third-quarter launch of an eponymous charitable foundation. He described it as “the next chapter in Betsson’s longstanding campaign to create a positive impact.”
“Many key performance indicators are trending the right way,” said Chief Financial Officer Martin Ohman. These included a 6% increase in player deposits and eight percent higher online sports betting handle. He said business-to-customer activities represented 86% of revenue, the remainder made up by business-to-business earnings.
Regionally, Betsson saw growth in all areas except Scandinavia, Central Europe and Eastern Europe, company execs reported. By contrast, Western Europe was up 14%, with Italy posting its best numbers ever.
Also outperforming was Latin America, where revenues shot up 52%. In the “rest of world” category, revenue vaulted 106%, driven mainly by Canada and reflecting the folding in of newly acquired Rhino Entertainment Group.
Queried about the Rhino purchase, Lindwall said Betsson bought it primarily for its Canadian B2C business, as well as for some B2B technology that had applications across the company. Ohman acknowledged some acquisition costs but “it’s not material and it’s not something that sticks out.”
Looking ahead to the fourth quarter, Lindwall said that average daily revenue was up 11% in October.
Inevitably, the question of Brazil’s recent ban of OSB and iGaming arose. “We have been in the market,” Lindwall acknowledged, “bit it has also looked a bit unstable. We are on the grandstand and will watch it from the sidelines.”
Betsson didn’t take a financial hit from the Brazilian ban, Lindwall continued, adding that the country was one that had seen very high marketing outlays by competing operators. “This is not something we regret,” the CEO said of Betsson’s Brazilian involvement. “It puts us in a good position,” should the ban prove temporary, which Lindwall believed would be the case.
Uncertainties in Chile were mentioned, but Lindwall was sanguine, “There are always things happening in certain markets,” he replied, “but we have seen no certain happenings for [Chile] that has any material impact for us.”
Turning to B2B revenue, Lindwall reported that “our B2B business has stabilized and we’re very grateful for that.” He added that Betsson was seeing increased B2C revenues and was paying the most taxes ever. He said he believed the B2B sector could be grown and “it would be tough to say we don’t expect any growth from our existing customers.”
Lindwall credited “a lot of product development” for Betsson’s strength in iGaming. He also attributed it to OSB customers migrating to online casino play: “It comes naturally when the sports betting margin becomes a little bit weaker.”
Although Lindwall didn’t expect 100% retention of customers obtained thanks to the World Cup, he said that large tournaments of that ilk created new plateaus in the player base. “We expect to see continued high activity,” he added.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
World Cup momentum reset Betsson’s growth story
Betsson’s latest quarter sits at the intersection of two themes that have defined the company’s recent trajectory: major-event customer acquisition and the shift toward regulated, geographically diversified revenue. The World Cup gave the operator a surge in activity, but the broader story is how much of that activity can be retained once tournament betting normalizes and sportsbook margins fluctuate.
The company had been preparing investors for that dynamic before the latest results. In July, management described a business already benefiting from elevated customer interest, with revenue at an all-time high and marketing aimed heavily at the World Cup. In that period, monthly active users rose 32%, though deposits and handle fell, showing the distinction between customer reach and betting volume. Betsson also said Latin America had become its largest regional contributor, with the region representing 36% of revenue, a signal that the World Cup campaign was reinforcing markets where the brand already had traction.
That setup matters because Betsson’s current performance was not a one-off tournament bounce. It followed a period in which management repeatedly tied sports-led acquisition to casino cross-sell and product development. In the company’s second-quarter update ahead of the World Cup, CEO Pontus Lindwall said big tournaments help acquire customers but do not necessarily create outsized long-term effects. The latest results test that proposition: the user base expanded sharply, but the company still needs to convert tournament bettors into recurring casino and sportsbook customers.
Casino gains offset pressure in sports betting
Betsson has leaned increasingly on casino revenue to smooth volatility in sports betting. In the third quarter, that balance became more visible. A separate report on the same quarterly performance showed group revenue at €326.5 million, up 10%, while iGaming revenue rose 14% and sportsbook revenue increased just 1%. The sportsbook margin was lower than in the preceding quarter, yet casino growth kept group revenue at a record level.
That pattern has been building over several quarters. In the first quarter of 2026, Betsson reported that sportsbook revenue was up 1% while casino revenue declined 4%, but the larger concern was not product performance alone. The company’s overall revenue fell 3% despite organic growth, largely because business-to-business revenue weakened. Management said business-to-consumer operations continued to perform well, especially in Latin America and Western Europe, even as profitability was squeezed by investment in markets that had not yet reached scale.
The third-quarter rebound therefore reflected more than a sports calendar tailwind. It also showed the value of a mixed product portfolio. Betsson has been investing in branded content and exclusive games, including sponsorship-linked titles tied to major soccer clubs. In an earlier third-quarter revenue report, Lindwall credited casino products with driving growth when sportsbook margins were weaker, calling it evidence that the company’s model could absorb swings in sports outcomes.
That resilience is important in online gambling, where sportsbook results can vary materially by event outcomes and customer mix. Betsson’s strategy has been to acquire customers through sports, then deepen engagement through casino, live casino and exclusive content. The current quarter suggests that approach is working, though it also raises the cost of maintaining engagement after the World Cup cycle fades.
Latin America became the central growth engine
Latin America has moved from a growth market to a defining contributor for Betsson. In the latest period, the region’s revenue rose more than 50%, building on earlier strength in Peru and Argentina. The company has repeatedly pointed to those markets as examples of how local brand investment, sports partnerships and product localization can translate into higher activity.
The first-quarter update showed the same direction even when group revenue declined. Betsson said Latin American revenue grew 25% and accounted for one-third of group revenue. Peru was singled out for its competitive product offering and strong brand position. Western Europe, particularly Italy, also helped, but Latin America supplied the clearest growth story.
That regional mix explains why Brazil’s regulatory disruption drew attention on the earnings call even though management said the immediate financial impact was limited. Brazil is one of the largest potential online betting markets in the world, but regulatory uncertainty can quickly alter marketing plans, payment flows and access to customers. Betsson’s relatively measured exposure gave executives room to downplay the ban, but the company’s Latin American concentration means regional policy shifts remain material to investor expectations.
The balance is delicate. Betsson has benefited from early positioning in fast-growing markets, but locally regulated markets also bring higher taxes and compliance costs. In the first-quarter results, the company said a larger share of locally regulated revenue helped explain lower profitability compared with the prior year. That trade-off is likely to persist: regulation can increase legitimacy and market access, but it usually compresses margins.
Rhino deal linked Canada to a broader B2B repair effort
Betsson’s acquisition of Rhino Entertainment added another layer to the story. The deal gave Betsson a stronger position in Canada, including Ontario, and brought in proprietary technology assets that management said could strengthen its B2B offering. That mattered because B2B weakness had become one of the company’s more persistent challenges.
In the first quarter, Betsson said B2B revenue dropped sharply after the loss of a key customer, falling to €51 million from €90 million a year earlier. Management said activity tied to that customer had stabilized and expressed confidence that B2B revenue could grow with existing and new partners. Still, the gap was large enough to weigh on group results and offset strength in direct-to-consumer operations.
The Rhino Entertainment acquisition addressed both sides of the business. It expanded Betsson’s B2C footprint in Canada through Rhino brands and licenses while adding front-end and middleware technology intended to support licensing revenue. The purchase was valued at about €64.5 million, funded through existing cash resources, and included assets that generated an estimated €13.7 million in EBITDA in 2025.
For Betsson, Canada also offered a regulated-market growth option outside the Latin American cycle. Ontario has become the country’s largest regulated online gaming market, and Alberta’s expected development adds another potential avenue. In the current quarter, management said Rhino helped drive growth in the “rest of world” category, particularly Canada. That suggests the deal is already visible in the top line, even if its longer-term B2B contribution will take more time to judge.
Margins, taxes and capital allocation remain the test
The biggest question for Betsson is not whether it can generate activity. Recent results show it can, especially around major sports events and in growth markets. The harder question is whether that activity can be converted into durable earnings growth while taxes, licensing costs, technology spending and market-entry investments rise.
The company’s fourth-quarter and full-year 2025 update underscored that tension. Revenue for the year rose 8% to €1.2 billion, but fourth-quarter revenue slipped 1% and sportsbook winnings fell 9%. Betsson remained profitable, with €182.4 million in full-year profit, but executives cited higher gaming taxes as a drag on profitability. License fees, personnel costs and taxes all increased, while marketing expenses fell.
That context makes the latest upbeat tone more nuanced. Betsson has cash, a stronger B2C engine, active M&A interest and a wider regulated-market footprint. It also faces the familiar online gambling challenge of converting scale into margin expansion. The company repurchased shares in 2025 and has signaled it remains open to acquisitions, but management has also emphasized investment in technology and organic growth.
The current quarter therefore marks progress, not resolution. The World Cup lifted users and revenue, Latin America continued to outperform, Canada added another growth vector and casino helped cushion sportsbook volatility. Yet Brazil’s uncertainty, B2B recovery and higher regulated-market costs will determine how much of the quarter’s momentum becomes recurring earnings rather than event-driven upside.
