bet-at-home reports Q1 loss as Austrian taxes and German rules bite

bet-at-home has reported a challenging start to 2026 as higher taxes in Austria and ongoing regulatory restrictions in Germany continued to weigh on the company’s financial performance. The online gambling operator recorded lower revenue, weaker sportsbook activity and a quarterly loss during the opening months of the year.

The latest quarterly report is also significant because it marks the company’s first earnings release since Banijay Group completed the sale of its controlling stake in the operator earlier this year. The ownership change comes during a period of transition for the European online gambling market, where operators continue to navigate stricter regulations, rising taxes and changing customer behaviour.

Despite the weaker results, management maintained its full-year outlook and expressed confidence that major sporting events, particularly the upcoming FIFA World Cup, could support customer activity and future growth.

Revenue declines amid tax increases

bet-at-home reported gross betting and gaming revenue of €11.34 million for the first quarter of 2026. The figure represented a decline of 16.1 per cent compared with the same period last year.

The main pressure came from the sportsbook division, which experienced a notable reduction in betting activity and revenue generation. Sports betting gross gaming revenue fell to €9.63 million from €12.01 million recorded a year earlier.

The operator stated that the weaker performance was largely linked to Austria’s revised betting tax framework. In April 2025 Austria increased its betting tax from 2 per cent to 5 per cent on stakes, creating additional costs for operators serving the market.

According to management, the company decided to pass these increased costs directly to customers beginning in June 2025. While this approach was intended to protect margins and maintain operational stability, it also resulted in lower customer engagement and reduced betting activity.

Chief Executive Officer Stefan Sulzbacher addressed the impact in the company’s quarterly statement. He said, “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.”

The Austrian market has become increasingly challenging for gambling operators as governments across Europe continue reviewing tax structures and tightening regulatory oversight of the online betting sector.

Germany continues to present regulatory challenges

In addition to developments in Austria, bet-at-home continues to face operational pressure in Germany, one of its key markets.

Germany’s current gambling framework imposes a 5.3 per cent tax on stakes, which many operators have argued places significant pressure on profitability. The country also introduced stricter player protection measures under the 2021 Interstate Treaty on Gambling.

Those rules include a monthly deposit limit of €1,000 for players as well as a €1 stake limit per spin on online slot games. Supporters of the regulations have argued that the measures are intended to improve consumer protection and reduce gambling-related harm. However, operators have frequently stated that the restrictions reduce competitiveness and limit customer spending.

For bet-at-home, the combined impact of Germany’s restrictions and Austria’s higher taxes has created a difficult operating environment during the opening quarter of 2026.

Betting activity records significant decline

The company’s latest figures reflected a broad decline in customer betting volumes during the quarter.

Sports betting volume fell to €67.86 million compared with €89.78 million in the same period last year. Total betting and gaming volume also declined sharply from €103.2 million to €82.3 million.

The figures indicate that customers were generally less active across the platform during the quarter. Industry analysts have noted that European online gambling operators are increasingly facing pressure from higher compliance costs, stricter advertising controls and tax increases in several regulated markets.

The softer performance also demonstrates the extent to which regulatory changes can influence consumer behaviour, particularly when operators pass additional costs on to players.

Online gaming segment provides positive sign

Although sportsbook performance weakened considerably, bet-at-home reported stronger results in its online gaming division.

Online gaming gross gaming revenue increased by 13.1 per cent year-on-year to €1.71 million. The growth provided one of the few positive developments within the quarterly report and partially offset the decline seen in sports betting operations.

The company did not provide extensive details regarding the specific drivers behind the online gaming increase. However, the broader European online casino market has continued to show resilience in recent years as customers increasingly engage with digital gaming products outside traditional sports betting.

Industry observers have suggested that diversified gambling operators may benefit from maintaining balanced product portfolios that include both sportsbook and casino offerings, particularly during periods of regulatory change.

Financial results move into loss territory

The difficult trading environment had a direct impact on profitability during the quarter.

EBITDA before special items recorded a loss of €149,000. Consolidated profit also moved into negative territory, declining from a profit of €887,000 in the previous year to a loss of €461,000.

The results underline the financial pressure currently facing operators within regulated European gambling markets. Rising operating costs, tax burdens and compliance obligations continue to affect margins across the sector.

At the same time, companies are expected to invest heavily in technology, responsible gambling systems and regulatory compliance frameworks to maintain their licences and market positions.

Banijay exits ownership position

The first quarter of 2026 also represented an important milestone following the exit of Banijay Group from the business.

The French entertainment company finalised the sale of its 53.9 per cent controlling stake in bet-at-home on January 2, 2026. The decision formed part of Banijay’s broader strategic shift toward its newly established gaming division.

The company recently created Banijay Gaming through the merger of Betclic and Tipico Sportwetten.

The restructuring reflects wider consolidation trends within the online gambling industry as companies seek larger scale, operational efficiencies and stronger market positioning.

Company maintains full-year outlook

Despite the weak start to the year, bet-at-home reaffirmed its full-year guidance for 2026.

The operator continues to forecast gross betting and gaming revenue between €46 million and €54 million. For comparison, the company generated €48 million in full-year revenue during 2025.

Management also maintained expectations for EBITDA before special items of up to €4 million.

Stefan Sulzbacher highlighted the potential impact of the upcoming FIFA World Cup as a possible driver for customer acquisition and betting activity during the second half of the year.

“We expect this major event to be an additional positive driver for further business development,” he said.

Major international football tournaments have historically generated substantial betting activity for licensed operators across Europe. The World Cup is expected to attract high levels of consumer engagement, particularly within sports betting markets.

Outlook remains cautious

While bet-at-home remains optimistic about the potential support from upcoming sporting events, the company still faces considerable uncertainty in the months ahead.

Regulatory developments across Europe continue to reshape the online gambling industry. Governments are placing increased emphasis on taxation, consumer safeguards and responsible gambling measures, while operators attempt to balance profitability with compliance obligations.

For bet-at-home, future performance will likely depend on its ability to manage regulatory costs, retain customers and strengthen engagement across both sportsbook and gaming products.

The first quarter of 2026 demonstrated the scale of the challenges currently affecting the company. However, management appears focused on stabilising operations while positioning the business for improved activity during the remainder of the year.

Conclusion

bet-at-home entered 2026 under difficult conditions as higher taxes in Austria and strict gambling regulations in Germany negatively affected revenue and customer activity. The operator experienced weaker sportsbook performance, declining betting volumes and a quarterly loss during the opening months of the year.

At the same time, the company continues to adapt to significant changes within the European online gambling sector, including rising regulatory demands and shifting ownership structures following Banijay Group’s exit.

Although short-term pressures remain substantial, management has maintained its annual guidance and expressed confidence that major sporting events such as the FIFA World Cup could help improve customer engagement and financial performance later in the year.

The coming quarters are expected to be important for bet-at-home as investors and industry observers monitor whether the operator can stabilise growth and navigate the increasingly complex European regulatory environment.

FAQs

What caused bet-at-home’s revenue decline in Q1 2026?
The company stated that Austria’s increased betting tax and lower customer activity were major reasons behind the revenue decline.

How much did bet-at-home’s gross gaming revenue decrease?
Gross betting and gaming revenue declined by 16.1 per cent year-on-year to €11.34 million.

Who is the CEO of bet-at-home?
The company’s Chief Executive Officer is Stefan Sulzbacher.

Why did Austria’s betting tax affect the company?
Austria increased its betting tax from 2 per cent to 5 per cent on stakes which raised operational costs for betting companies.

Did bet-at-home report a profit in the first quarter?
No. The company reported a consolidated loss of €461,000 during the quarter.

What happened to sports betting revenue?
Sports betting gross gaming revenue declined from €12.01 million to €9.63 million year-on-year.

Did any part of the business grow during the quarter?
Yes. Online gaming revenue increased by 13.1 per cent to €1.71 million.

Why did Banijay Group sell its stake in bet-at-home?
Banijay Group sold its controlling stake as part of its strategic focus on the newly formed Banijay Gaming division.

What is bet-at-home’s outlook for 2026?
The company expects annual gross betting and gaming revenue between €46 million and €54 million.

How could the FIFA World Cup help the company?
Management believes the tournament could increase customer registrations and betting activity during the year.