Germany-headquartered operator bet-at-home has reported a challenging start to 2026 as first quarter revenues declined sharply following the impact of Austria’s betting tax increase.
Gross betting and gaming revenue (GGR) for Q1 2026 fell 16.1% year-on-year to €11.34m (£9.83m), down from €13.52m in the corresponding period last year.
The decline was driven primarily by weaker online sports betting performance, with sportsbook GGR falling from €12.01m to €9.63m.
Despite the significant sportsbook drop, the company expects this summer’s 2026 FIFA World Cup to provide a boost to customer activity later in the year.
The financial results are the first since the company was cast aside by sports entertainment giant Banijay Group, which sold its majority 53.9% controlling stake in the business, finalised on 2 January.
This move by Banijay was made to focus on the development of its new Banijay Gaming unit, formed by the merger of Betclic and Tipico Sportwetten.
Regulations stifle progress
Much of the decline was, according to leadership, down to Austria’s betting tax increase from 2% to 5% of stakes, which came into effect on 1 April 2025.
In further regulatory woes for the business, Germany’s Interstate Treaty on Gambling (GlüStV 2021), which has rules including a €1,000 monthly deposit cap, a 5.3% stake tax, €1 slot stake limits and 5-second spin rules, remains in place.
An ongoing review is set to be complete by the end of the year, but until an update is issued, such intense regulation will remain in place in bet-at-home’s domestic market.
“The results of the bet-at-home.com AG Group in the first quarter of 2026 reflect a challenging market environment,” said bet-at-home Chief Executive Officer, Stefan Sulzbacher.
“Gross betting and gaming revenues declined by 16.1% in the first quarter of 2026 compared to the previous year to €11.34m, primarily due to weaker performance in the online sports betting segment.
“In the comparative period, the increase in the betting tax in Austria from 2% to 5% of stakes (effective 1 April 2025) had not yet come into effect. The immediate pass-through of the increased costs to customers from June 2025 led to a decline in revenues as well as overall customer activity.”
Sports betting volume fell significantly from €89.78m to €67.86m YoY, contributing to total betting and gaming volume declining from €103.2m to €82.3m.
In contrast, the operator’s online gaming segment continued to grow. Online gaming GGR rose 13.1% YoY to €1.71m, while gaming volume increased from €13.42m to €14.46m.
Net betting and gaming revenue fell from €10.81m to €8.6m after betting fees, gambling levies and VAT deductions.
The company’s profitability also deteriorated during the quarter. EBITDA before special items at bet-at-home fell to a loss of €149,000 compared to positive EBITDA of €1.6m in Q1 2025, while reported EBITDA dropped from €1.17m to a loss of €320,000.
Meanwhile, consolidated profit swung from a €887,000 profit last year to a €461,000 loss for the quarter.
Marketing expenditure declined 7.4% YoY to €4.49m. bet-at-home.com said its marketing strategy for 2026 is heavily focused on the upcoming World Cup in the US, Canada and Mexico, but that this “continues to be offset by existing regulatory, legal, and competitive uncertainties”.
Other operating expenses fell 20.9% to €2.44m due to lower service provider costs, reduced legal advisory expenses and lower foreign exchange losses.
Despite the weaker quarter, bet-at-home maintained a solid liquidity position. Cash and cash equivalents stood at €26.68m as of 31 March, down only slightly from €27.89m at the end of 2025.
Looking ahead, the firm said it remains focused on its core German and Austrian markets.
Sulzbacher added: “An emphasis is placed on the start of the FIFA World Cup, which will take place in June and July 2026 in the US, Canada, and Mexico. We expect this major event to be an additional positive driver for further business development.
“In particular, increased customer activity and growth in new registrations compared to the 2025 financial year are anticipated.”
bet-at-home’s recent challenges
The company reiterated its full-year guidance for 2026, forecasting gross betting and gaming revenue of €46m-€54m and EBITDA before special items up to €4m.
Last year, bet-at-home reported €48m revenue and €2.4m in EBITDA before special items, but these numbers have been on a gradual decline for the best part of a decade.
The firm is no longer the powerhouse it once was in the late 2010s, when it was reporting turnovers of more than double of that €48m figure, and that decline has caused investors to turn away.
This has led to a mammoth dip in its share price, market cap and reputation on the Frankfurt Stock Exchange, where shares are trading way off its mid-2017 peak of €150.
Since then, shares have dropped by over 98% and now sit at the €2.61 mark, while bet-at-home’s market cap is €18.3m – some distance away from the approximate €740m it was valued at back when its stock peaked.
Nevertheless, for 2026, Sulzbacher has stood firm on the current €48m revenue outlook, despite ongoing market pressures and operational uncertainty.