Dialling in after the release of Betsson’s Q4 and full-year 2025 earnings, Pontus Lindwall remains confident despite a challenging earnings period. EBITDA and EBIT both fell, as B2B revenue slipped and tax impacted markets across the globe.
Speaking to EGR, Lindwall is relaxed about 2026 and beyond, with the World Cup on the horizon and average daily revenue thus far tracking above Q1 2025. A shift to locally regulated markets was highlighted in the report, albeit against the backdrop the company is reportedly looking at a deal for Sportsbet.io and BitCasino.io. Lindwall says market exits will come as part of the strategy. The focus for Betsson, after years of solid growth, will be to rectify the share price slide and recover from the bump in the road.
EGR: You prefaced this report with the preliminary update in January which sent the stock price down –do you think that slip was warranted?
Pontus Lindwall (PL): We had to go with an update of the results because obviously the expectations in the market were at one place and we had other information. So, due to regulations, we had to do that. It’s very hard for me, in my position, to comment on the share price reaction. But obviously, when we present a smaller profit than expected, you can expect a drop down in share price to some extent.
EGR: Figures for CEECA, which has been a real growth engine in recent years, slowed down in H2. What is the reason for that and what is a remedy?
PL: That goes hand in hand with the loss of activity for one of our B2B partners and it’s very hard to say how it’s going to play out going forward. But we have plenty of other B2B customers and other initiatives for that part of the business, so I’m not worried in the greater context.
EGR: Italy reported another record quarter. How are you set for the new market makeup following the regime change and reduced number of operators?
PL: I think we’re very well positioned. We have two well-known brands up and running. We have a very good sponsorship with Inter that fuels the business and very strong team in place to run the operation.
I think we’re in a very good position to continue to grow in that market. We have enjoyed an amazing journey, and we believe it’s going to continue.
EGR: What are your aspirations for Finland now the new Gambling Act has passed?
PL: We’re going to look into it. We’re going to look into what the taxes look like and, based on that, we will decide how much effort we will put into it. As you know, the Nordics in general is not our core or where we put the bulk of our efforts. So, I think we will have to judge the conditions for Finland and then decide what to do with it.
EGR: There was a win in Colombia with the VAT on GGR being scrapped. What’s your reaction there?
PL: That was good. In this industry, we are pretty bashed up already by some taxes. We hope, on a greater scale, that this will start to move back so we can get more healthy conditions for our operations in many of the markets.
In Colombia, of course we’re grateful and happy it’s happened, and it gives, at least for now, some hope for the market.
EGR: Staying it Latam, Brazil’s GGR tax rate will hit 15% in 2028 – so not all jurisdictions are aligned on tax policy.
PL: If you were to weigh up these two different ways of going then, unfortunately, the raising of taxes until [you reach] unhealthy conditions is still the one change that is the most popular among regulators.
EGR: During the quarter, Betsson implemented a specific “Supplier Code of Conduct”. What does that mean? Not working with suppliers that support the black market?
PL: It’s not exactly like that. It’s a framework that will help us have our suppliers in order. I think it has a value signal to our suppliers. I don’t think it will have any immediate effects on the business, but this whole industry is going through a journey with tighter controls and compliance, and it’s a part of that big change.
EGR: The Q4 report states “in markets where local regulation is not considered likely to be introduced in the near term, Betsson’s ambition is to discontinue its B2C operations”. What does near term look like?
PL: Let’s say, a couple of years. It’s so hard to look further down the road in this industry, but we will focus on markets that are about to regulate, where we can see regulation coming and,of course, as always, markets where there is regulation so we can operate.
EGR: Why is this shift important now? Regulated revenue for Betsson is 67.7% of group revenue – is there pressure from shareholders?
PL: No shareholder pressure – nothing like that. This industry has matured, and I think most countries that want regulation are heading towards regulation if they don’t have it already.
It becomes a natural way for us to treat the market. I’m not so sure we will ever have 100% regulated revenues, but it’s a very strong and important trend that countries regulate their online gaming business.
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Speaking to EGR, Pontus Lindwall says wider macro shift to locally regulated markets will see Betsson pull away from jurisdictions without frameworks in place
The post Betsson AB CEO on regulated revenue and assessing market entries first appeared on EGR Intel.