Betsson revenue, profits slip in first quarter

Setting the stage for a tougher quarter

Betsson’s softer first-quarter print follows signs of narrowing momentum late last year. In fourth-quarter and full-year 2025 results published Feb. 5, the company reported group revenue down 1% in the quarter to €303.9 million even as full-year sales rose 8% to €1.2 billion. Sportsbook winnings fell 9% in the quarter while igaming edged 3% higher, and cash flow slipped 20% to €69.3 million. Executives flagged a mixed regional picture, with gains in Latin America and Western Europe offset by weakness in the Nordics and higher gaming taxes weighing on margins. Business-to-consumer activity was stronger while business-to-business softened, with B2C comprising 77% of revenue. Those dynamics framed 2026’s opening act: more reliance on retail-facing markets to counterbalance a cooling B2B engine. The full readout is detailed in Betsson experiences narrower numbers in fourth quarter.

That setup helps explain why a 4% organic uptick could still translate to a 3% headline revenue decline in the latest quarter. The company’s commentary underscores a familiar trade-off in regulated online gambling: expanding into markets with higher taxes and compliance costs can dilute near-term profitability even as it deepens the customer base and stabilizes long-term growth.

LatAm push becomes core strategy, not a side bet

Latin America has shifted from growth option to growth engine for Betsson. Management has repeatedly pointed to the region as a source of resilient B2C performance. That direction sharpened with Brazil’s move to a locally regulated regime on Jan. 1 and Betsson’s subsequent license approval, effective Feb. 25. The company framed the authorization as central to its geographic expansion plan and to offering a safer, higher-quality experience under local oversight. See Betsson obtains Brazil gaming license for details on the license scope and rationale.

Betsson’s approach in Latin America extends beyond licensing into brand building that knits gaming with football culture. In Colombia, it unveiled a club-branded slot title, Rey de Copas, with Atlético Nacional in August 2025, an example of localized content aimed at deepening engagement and differentiating the product suite. That effort dovetails with sponsorships and live activations designed to drive organic traffic and conversion. The rollout is described in Betsson launches Atlético Nacional branded slot game.

The logic is clear: as more LatAm markets regulate and tax, operators need stronger brands, tailored content and durable customer relationships to sustain unit economics. Betsson’s first-quarter disclosure that Latin America accounted for roughly one-third of group revenue, with Peru singled out, suggests that thesis is taking hold even as margin headwinds bite.

Regulation lifts stability while compressing margins

Regulatory normalization remains a double-edged sword. Betsson highlighted a higher share of locally regulated revenue as a key reason profitability trailed the prior year. That tracks with 2025 commentary that taxes took a bigger bite and with the company’s comfort leaning into jurisdictions that swap volatility for predictability. The cost arithmetic is not new: local licenses can expand addressable markets and reduce gray-area risks, but they raise take-rates through taxes and fees and demand ongoing investments in compliance, payments and responsible gambling.

The company has said it is funding newer, not-yet-profitable B2C entries that pull on operating income each quarter. Brazil is emblematic. While the license is an entry pass to a vast market, the near-term P&L impact will depend on customer acquisition velocity, bonus discipline, sports margins and cross-sell into casino. In mature Europe, Western markets like Italy are contributing share gains that help offset rising levies, a pattern Betsson has described since late 2025. The wider implication: 2026 may be a year where top-line resilience coexists with compressed unit margins as the mix tilts further toward regulated revenue.

Rewiring B2B after a client shock

If B2C is carrying the load, B2B is still resetting. Betsson has acknowledged that the loss of a major customer last year pulled B2B revenue lower and that activity for that client stabilized only in December. The strategic response has two tracks: rebuild with existing and new partners and upgrade technology to strengthen the offering. The latter is visible in the agreement to buy technology assets and the Canadian B2C operations of Rhino Entertainment Group. The deal, valued at €64.5 million and slated to close in the second or third quarter of 2026 pending approvals, would add proprietary tech to Betsson’s B2B toolkit and plant a consumer foothold in Ontario with potential to expand into provinces like Alberta as they regulate. Full terms are in Betsson to acquire Canadian B2C arm of Rhino Entertainment Group.

Beyond technology, the acquisition signals a continued willingness to deploy balance-sheet capacity to accelerate scale and diversification. In effect, Betsson is using M&A to shorten the rebuild timeline in B2B while adding a regulated North American consumer beachhead that can benefit from cross-market know-how honed in Europe and Latin America.

Industry read-across and the stakes ahead

Peer results show how mix and market selection shape outcomes. Rush Street Interactive’s latest quarter featured a sharp swing to profit, a 22% revenue rise to $269.2 million and robust cash generation, powered by North American igaming growth and disciplined deployment where it can offer a full product suite. The company raised its full-year revenue and cash flow guidance, underscoring operating leverage when product breadth meets regulated scale. The comparison, outlined in Rush Street revenues and profits skyrocket, highlights the competitive bar for margin execution in regulated markets.

For Betsson, the immediate stakes are executional. In sports, a busy calendar can lift handle and cross-sell, but volatile hold can mask underlying customer trends. In casino, product freshness and localized content will be critical in Latin America and in Western Europe, where Italy-led share gains have been an offset. On B2B, stabilizing the base and converting the Rhino tech into partner wins could restore a second profit leg by 2027.

The strategic trade remains consistent across the past 18 months of disclosures: accept lower near-term profitability as the price of mix-shifting toward licensed geographies, deepen moats through brand, content and technology, and use selective M&A to quicken the path back to scale economics. If Betsson can compound B2C growth in Brazil and the broader LatAm corridor while reigniting B2B monetization, the first-quarter dip may look like the trough of an investment cycle rather than a trend break. The next few quarters will test that premise as regulatory costs normalize, customer cohorts mature and the company integrates new assets into its platform.