iGaming Quarterly Report 2026: Record Revenues Meet Shrinking Margins

The second quarter of 2026 marked a turning point for the global gambling industry, where light and shadow stood in stark contrast. The FIFA World Cup, which kicked off in June, acted as a powerful catalyst for betting activity. Millions of fans worldwide placed their stakes, sending revenue curves soaring for industry leaders like Betsson and Flutter. However, those who believed that more bets automatically meant more profit were proven wrong by the newly released quarterly figures. The reality of the balance sheets shows that the regulatory corset is tightening in many markets and the cost of customer acquisition is reaching astronomical heights.

Operators like DraftKings and MGM Resorts struggled during the past quarter with a phenomenon feared in the industry: bettor-friendly results. When favorites win at major tournaments, the bookmakers' margins drop drastically. This led to DraftKings reporting a 5 percent revenue decline to $1.44 billion, despite a 9 percent increase in active users to 3.6 million monthly customers. It is a classic example of how high player engagement does not necessarily flow into corporate coffers if the sporting results run against the house.

Numbers and facts

The detailed results of the major players paint a differentiated picture. Betsson reported record revenue of €310.2 million, an increase of 2.1 percent. Growth in Latin America was particularly impressive, jumping by 32.3 percent. Nevertheless, operating income fell massively by 38.9 percent. A key reason for this is the increased share of regulated markets in total revenue, which now stands at 75.5 percent. More regulation means more taxes, and shareholders feel this immediately. Flutter Entertainment, the industry heavyweight, increased its revenue by 3 percent to $4.33 billion but saw adjusted EBITDA drop 19 percent to $476 million.

"The second quarter was characterised by continued healthy growth in our B2C business, positively impacted by the FIFA World Cup that kicked off in June. At the same time, B2B revenue remained at a lower level than the previous year, which weighed on the quarter’s profitability." - Pontus Lindwall, CEO of Betsson

At MGM Resorts, a split is also evident. While the Las Vegas Strip remains the backbone with $2.2 billion in revenue, the digital division, MGM Digital, is still struggling with an adjusted EBITDA loss of $31 million despite revenue of $196 million. Entain, on the other hand, benefited strongly from the World Cup, reporting that the number of first-time depositors was twice as high as during the 2022 tournament. This led to an 8 percent increase in Online Net Gaming Revenue (NGR).

Background

The strategic focus of many companies is currently shifting significantly. Bragg Gaming Group is a prime example of this. Although revenue fell by 12 percent to $26.1 million, adjusted EBITDA remained stable at $4 million. This was achieved solely through drastic cost-cutting and an improvement in margins from 13 to 15 percent. The industry is in a consolidation phase where efficiency is becoming more important than blind growth at any cost. In the US, the competition remains extremely expensive, prompting Flutter to cautiously lower its annual guidance to $17.4 billion in total revenue.

Why it matters for German players

For German players, this development primarily means stability and security, but also a stricter environment. As major operators like Betsson or Entain increasingly focus on regulated markets, the pressure to strictly comply with the German Interstate Treaty on Gambling 2021 (GlüStV 2021) grows. The Joint Gambling Authority of the States (GGL) strictly monitors compliance with the whitelist. For players, this means that the monthly deposit limit of €1,000 via the LUGAS system and the stake limit of €1 per spin on online slots remain immovable constants.

As operator profitability comes under pressure, bonus offers might become more targeted and perhaps a bit less exuberant than in the "Wild West" days of MGA or Curacao licenses. However, those playing with a provider licensed in Germany benefit from the certainty that their funds are safe and winnings are guaranteed to be paid out. The quarterly figures show that large companies are planning for the long term and view the German market as a crucial anchor for their stability despite high taxes.

What it means for GGL-licensed casinos

Casinos with a GGL license must prepare for an environment where efficiency is the most important currency. Since taxes on stakes in Germany are comparatively high, providers must perfect their platforms technically to retain customers in the long term without falling into ruinous bonus battles. The trend toward cost control, as exemplified by Bragg Gaming, will also take hold in Germany. Only those who keep their marketing expenses under control while implementing the strict player protection requirements of the GGL will be able to survive in this market environment.