German gambling operator Bet-at-home recently released its financial report for the first half of 2025, showing that the company's revenue was basically flat compared to the same period last year, while regulatory changes in the Austrian and German markets continue to pose challenges to business development.
Financial Performance Overview for the First Half of the Year
As of June 30, 2025, Bet-at-home's total gambling revenue for the first half of the year was 25.3 million euros (approximately 27.5 million US dollars), which was basically flat compared to the same period last year. Due to increased taxes, net gambling revenue slightly decreased by 2.5% to 19.7 million euros. Despite stagnant revenue growth, the company's profitability improved, with EBITDA excluding special items increasing from 1.2 million euros in the same period last year to 3 million euros, and net profit nearly doubled to 1.8 million euros.
Impact of Austrian Market Tax Reform
Starting April 1, the Austrian gambling tax rate was raised from 2% to 5%, leading to an immediate decline in gambling activities. Starting in June, Bet-at-home began passing on the increased costs to customers, a move that may affect its competitiveness in the Austrian market, as some competitors choose to absorb the increased costs themselves. The clause in the Austrian ruling coalition agreement regarding "further development of the gambling monopoly" also brings uncertainty to future market liberalization.
Challenges in the German Regulatory Environment
Germany, as Bet-at-home's largest market, continues to face challenges in the regulatory environment. A report by the German Sports Betting Association (DSWV) points out that the regulated market has "serious structural problems," with about a quarter of gambling activities still conducted through unlicensed operators. A monthly deposit limit of 1,000 euros, betting type restrictions, and cumbersome player review procedures are considered the main reasons for the active black market.
Operational Adjustments and Cost Control
The management attributes the improvement in profitability to a decrease in marketing costs, especially due to the absence of major football events in the summer. Advertising expenses (including marketing and bonuses) decreased by 20.5% to 8.2 million euros. Bet-at-home emphasizes that while regulation is necessary, overly strict regulations may harm the interests of licensed operators and affect the development of the legal gambling market.
Legacy Risk Management
The company continues to handle the liquidation of its former subsidiary in Malta, and although it is expected to recover some funds, the enforceability of customer claims and the EU's scrutiny of Malta's legal framework increase uncertainty. In Germany and Austria, legal challenges from customers seeking compensation for historical gambling losses continue, but management believes that current financial risks are within a manageable range.
Future Outlook and Performance Expectations
Bet-at-home maintains its full-year total gambling revenue forecast between 46 million and 54 million euros, with EBITDA before special items expected to be between the break-even point and 4 million euros. The company states that this broad range of expectations reflects the uncertainty of regulatory and tax changes. Management emphasizes that efficiency improvements, technology investments, and brand building will be key strategies to address challenges, while acknowledging that external regulatory pressures will still be the main determinants of performance.
