Lottomatica enhances its market presence in Italy’s regulated betting landscape

(AsiaGameHub) –   Lottomatica’s Q1 financial results reflect the broader Italian betting market’s adaptation to the new regulatory framework introduced in November 2025.

Initial data from the updated market indicate consistent performance in online casinos, though online betting has seen less favorable trends. Certain key regulatory issues, including retail gaming and marketing policies, remain unresolved.

In its Q1 report, Lottomatica reported a 2% year-over-year increase in gross gaming revenue, reaching €1.24 billion (£1.1 billion), with total revenue growing by 3% to €602 million. The most significant growth was recorded within the online gaming segment.

Online revenue increased by 10% to €265 million. Meanwhile, revenue from its Gaming division remained flat at €195 million, and sports-related revenue declined by 5%, dropping from €150.4 million to €142 million.

A clear contrast emerges between Lottomatica’s retail and online operations when considering market share. Despite competition from major international players such as Flutter Entertainment, Entain, bet365, and Betsson, the company remains a strong contender in Italy’s online sector.

As of the end of Q1 2026, Lottomatica holds an online market share of 31.8%, up 1.4 percentage points from Q1 2025; a sports betting market share of 32.5%, an increase of 0.7 percentage points from 2025; and an iGaming market share of 32.2%, up 1.9 percentage points from 2025.

The company continues to generate profits despite challenges faced by its sports and gaming divisions. Group-wide adjusted EBITDA rose 7% to €236 million (from €220.5 million), while adjusted net profit grew 12% to €106 million.

Guglielmo Angelozzi, Chairman and Chief Executive Officer of Lottomatica, stated: “In the first quarter of 2026, we maintained strong momentum across our addressable markets, driving double-digit year-over-year growth in Adjusted EBITDA of +22%, on a normalized basis.”

The SKS365 acquisition continues to deliver results

Italy has become a strategic focus for numerous international operators, prompting domestic companies like Lottomatica to reassess their strategies. As noted earlier, players such as Flutter and Betsson have been expanding their presence and capturing market share in the country.

Betsson’s recent Q1 performance highlights the importance of Italy to its overall European operations, contributing to regional revenue growth of 10.3% to €61.3 million. Flutter has also intensified its push into the Italian market, now owning two prominent brands—Sisal and Snaitech.

To respond to this competitive landscape, local firms such as Lottomatica have pursued growth through acquisitions. In April 2024, Lottomatica acquired SKS365, a retail and online gaming operator, for €640 million, subsequently rebranding it as PWO.

The firm began attributing gains in market share to this merger starting in 2025, and these improvements have persisted into 2026, according to leadership. PWO achieved an iGaming market share of 5.5%, successfully regaining half of the market share lost during the transition of its platform and customers into Lottomatica’s systems.

Angelozzi commented: “PWO continues to perform well, having fully recovered its sports betting market share compared to pre-migration levels, and showing solid progress in iGaming.”

Lottomatica maintains confidence amid ongoing political discussions

The new regulatory environment in Italy has been broadly welcomed by licensed operators.

With the second-largest betting market in Europe after the UK, Italy stands apart from other nations such as the UK, Netherlands, France, and Germany, where tax frameworks have faced more criticism. Notably, Italy’s current tax structure has not drawn similar scrutiny.

Some regulatory measures, including the requirement that each brand or website must operate under a single license, have been particularly beneficial for smaller operators. However, marketing restrictions remain contentious, especially the complete prohibition on sports sponsorships.

There is growing pressure on the government to reconsider the 2018 Dignity Decree, which bans betting sponsorships. This demand has intensified due to concerns about the financial impact on Italian sports, highlighted by the national team’s failure to qualify for the World Cup this year.

Maurizio Leo, Deputy Minister of Economy and Finance, plans to propose a package of reforms related to retail gambling to Prime Minister Giorgia Meloni’s Council of Ministers. These include introducing a regional revenue-sharing model.

Despite these developments, Lottomatica remains optimistic about the remainder of 2026.

Angelozzi added: “With a positive outlook for fiscal year 2026, we anticipate closing the year with Adjusted EBITDA at the higher end of our guidance range and returning up to €1 billion to shareholders during 2026 and 2027, beginning this week with the launch of the newly approved share buyback program.”