(AsiaGameHub) – According to Betsson CEO Pontus Lindwall, the firm’s sustained focus on Italy is yielding results, having driven a 10.3% rise in Western Europe revenue for the first quarter.
The Q1 results, released on Friday, revealed double-digit growth in Western Europe fueled by record-breaking revenue in Italy, alongside all-time highs for turnover and deposits.
In an interview following the earnings release, Lindwall indicated to iGB that Italy serves as a prime illustration of Betsson’s long-term approach successfully achieving profitability in a market.
“Typically, establishing a profitable B2C market is a lengthy process,” Lindwall stated. “Investments are required in brand awareness, customer acquisition, and team building. You essentially begin from scratch, and it can take many years to reach profitability.
“Italy is a perfect case. We sustained costs and losses in that market for approximately a decade before turning a profit. That is the commitment needed to build a strong position in a major B2C market.”
Analyst H2 Gambling Capital projects the total online betting and gaming Gross Gaming Revenue (GGR) in Italy will approach €7 billion by 2026. By 2030, the market is forecast to produce over €9.3 billion in online GGR, a growth trend Betsson is positioned to benefit from.
In the first quarter of 2026, Italy’s betting revenue decreased by 7%, even with a robust recovery in March, while virtual betting expanded by 16% and horseracing sustained a significant downturn.
Record regulated revenue for Betsson
Betsson’s total group revenue for Q1 was €285.3 million, representing a 3% year-on-year drop, which was negatively impacted by the performance of its B2B division.
The proportion of Betsson’s revenue derived from locally regulated markets climbed to 73%, a 20% increase compared to the previous year. This quarter recorded the highest regulated revenue in the company’s history. Lindwall emphasized that shifting towards regulated markets is a primary objective for the company’s future.
“This is embedded in our long-term plan,” Lindwall clarified. “We anticipate that the overall market will gradually transition from point of supply regulation to local regulation, and this applies to the majority of markets.
“Therefore, to secure a strong market position in the long run, a significant presence in regulated markets is essential. That is the strategy.”
Further M&A on the cards for Betsson
Following an agreement signed last month, Betsson is currently working to complete its purchase of the B2C division of Rhino Entertainment Group.
Lindwall expects the acquisition to be finalized by the end of the second quarter or the beginning of the third quarter, pending necessary regulatory clearances.
When questioned about the potential for additional mergers and acquisitions, Lindwall confirmed the company perpetually reviews new prospects.
“It’s no secret that M&A is an ongoing component of our growth strategy,” Lindwall continued.
“I would describe it as standard practice for us to always be assessing a few potential M&A opportunities.”
LatAm continues to be a focus for Betsson
Betsson’s sportsbook revenue saw a 1% increase in Q1, but its overall performance was offset by a 4% decline in casino revenue.
First-quarter EBITDA was €50 million, a 36% fall from the €77.7 million reported in the corresponding quarter of the previous year.
Nevertheless, Latin America remained a vital region for Betsson, with revenue growing by 25% in Q1 and constituting one-third of the company’s total revenue.
The growth in LatAm was spearheaded by a robust performance in Peru. Lindwall affirmed that both the Peruvian market and the broader region will remain central to the company’s strategy.
“We believe we hold a solid brand position [in Peru],” Lindwall stated. “We possess valuable sponsorship assets and have been operating there for some time. Our technology is well-suited to the market, and the market is well-adapted to our technology. Consequently, I believe our position there is strong.
“LatAm is a business segment where we dedicate significant effort, with several markets being key focuses for substantial marketing and sponsorship investment. I fully anticipate continued growth in the region.”
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