When the group's first-quarter revenue fell by 3% to 285.3 million euros, Betsson CEO Pontus Lindwall found a bright spot in the Italian market. The Q1 financial report released by this Swedish gambling operator on Friday showed that revenue in the Western European market increased by 10.3% year-on-year, with Italy contributing record-high revenue, turnover, and deposit records. Lindwall was straightforward in an interview after the earnings release: In Italy, they spent about ten years enduring cost losses and negative profits before achieving today's profitable situation. For a consumer-facing gambling market, starting from scratch in terms of brand awareness to build a customer base and local team is a long endurance race. H2 Gambling Capital expects that the gross gambling revenue of the Italian online betting and gambling market will approach 7 billion euros in 2026 and exceed 9.3 billion euros by 2030. First-quarter data showed that although gambling revenue from sports betting in Italy declined by 7%, there was a strong rebound in March, and virtual gambling grew by 16%. Betsson also recorded a 73% share of regulated market revenue this quarter, up 20 percentage points year-on-year, setting a historical record.
Ten years of enduring losses, Italy turns from a cost black hole to a profit engine
Lindwall singled out the Italian case to annotate Betsson's overall strategy. Entering a large B2C market in the first few years is almost destined to be a money-burning phase—brand awareness needs advertising investment, customer groups need individual registered users to accumulate, and local teams need to be built from scratch. The Italian market has validated this patient approach: ten years of investment, finally profitable. From Q1 data, even though the group's gambling revenue declined by 4% dragging down the overall performance, sports betting revenue still slightly increased by 1%, and Western Europe became the only region to achieve double-digit growth. This indicates that for a multi-regional operator, Italy has transformed from a past cost black hole into a profit stabilizer.
Regulated income ratio of 73% sets a new high, local licenses as a long-term moat
The group's first-quarter regulated market revenue ratio reached 73%, which Lindwall sees as the core anchor of the long-term strategy. His logic is clear: the global gambling market is transitioning from supply-side regulation to local regulation, and to occupy a strong position in the future, it is necessary to expand in regulated markets. This strategy is not only reflected in Italy's ten years of cultivation but also in the company's selection criteria for acquisition targets. After reaching an acquisition agreement last month, Betsson is waiting for regulatory approval to complete the acquisition of the B2C business of Rhino Entertainment Group, expected by the end of the second quarter or the beginning of the third quarter. Lindwall revealed that the company always has several potential acquisition opportunities on hand, and acquisitions are a regular part of the growth strategy.
Latin America revenue increases by 25% accounting for one-third of the total, Peru becomes a new growth pole
While Western Europe relies on Italy to hold the situation, Latin America continues to provide the strongest growth rate for Betsson. First-quarter revenue in Latin America soared by 25% year-on-year, already accounting for one-third of the group's total revenue, with the performance in the Peruvian market being particularly outstanding. Lindwall attributed Peru's success to the long-term accumulation of brand assets, effective deployment of sponsorship resources, and bi-directional technical adaptation with the local market. He explicitly stated at the earnings meeting that Latin America is a strategic hinterland where the company invests a lot of energy, and some core markets' marketing and sponsorship investments are still being increased, maintaining certain expectations for future growth.
PASA official website continues to track the regional strategy and global layout dynamics of European gambling operators, noting that Betsson's performance structure is undergoing a profound regional rotation. Western Europe stabilizes the base with long-term investments in Italy, Latin America provides growth momentum with a 25% increase, and the short-term drag of the B2B segment is waiting for efficiency release after acquisition integration. Lindwall's ten-year Italian proposition answers one of the most basic questions in the gambling industry: In a market with increasingly strict regulation and high local barriers, just how much is patience worth?
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