Regulatory Challenges Impacting Bet-at-home’s Performance in Germany
Recently, Bet-at-home has flagged ongoing regulatory hurdles in its primary markets, which are hindering growth. The Düsseldorf-based online betting platform reported little change in revenue for the first half of 2025, a concerning trend for stakeholders.
The company recorded a gross betting and gaming revenue of €25.3 million ($27.5 million) for the six months ending June 30, 2025, showing negligible variation from the previous year’s figures. Net gaming revenue slightly dipped by 2.5%, landing at €19.7 million, attributed to increasing levies.
Despite these stagnations in revenue, there was a notable improvement in profitability. Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items surged to €3 million, a significant rise from €1.2 million last year. Similarly, net profit nearly tripled to €1.8 million. This financial resilience is largely due to slashed marketing expenditures, which fell by 20.5% to €8.2 million, coinciding with the absence of a significant summer football tournament.
The Nuances of the European Market
The financial metrics, however, conceal complexities within Bet-at-home’s two primary markets. In Austria, a sharp increase in the betting levy—from 2% to 5%—was enforced on April 1, sparking an immediate downturn in betting activities. In response, Bet-at-home started passing these costs onto customers in June, a strategy that may threaten its competitive edge as rival companies opt to absorb the additional expenses.
Looking ahead, the long-term landscape in Austria appears uncertain. Recent coalition agreements hint at the potential liberalization of the online gambling sector, which could significantly reshape market dynamics. Currently, a state monopoly persists, with foreign operators navigating a grey market to reach Austrian consumers.
Regulatory Friction in Germany
Germany remains Bet-at-home’s largest market, yet its regulatory landscape poses persistent challenges. A report from the German Sports Betting Association (DSWV) highlighted a "serious structural problem" in the regulated market, noting that up to 25% of gambling activities still occur with unlicensed operators.
The DSWV attributed this shift to stringent regulations, including a €1,000 monthly deposit limit and restrictions on betting options, alongside rigorous checks on player affordability. Bet-at-home has voiced concerns that while regulation is essential, excessively restrictive measures could drive customers to unregulated channels, undermining the goals of maintaining a responsible and legal gambling environment.
Though Bet-at-home secured license renewals in Germany until 2027 and expanded its sportsbook offerings to include certain international friendlies, management warns that the regulatory constraints continue to suppress revenue growth.
Navigating Legacy Challenges
In addition to these pressing regulatory issues, Bet-at-home is still addressing legacy risks, particularly concerning its former Maltese subsidiary, which is currently undergoing liquidation. While the company anticipates some recovery, ongoing disputes regarding the enforceability of customer claims, coupled with increasing scrutiny of Malta’s regulatory framework, introduce additional uncertainties. Legal issues also persist in Germany and Austria, where customers are attempting to reclaim historical gambling losses. Nevertheless, management believes its current financial exposure remains manageable.
Looking forward, Bet-at-home has upheld its full-year guidance for gross betting and gaming revenue to fall between €46 million and €54 million, with EBITDA expected to range from break-even to €4 million. This broad estimate is indicative of the unpredictable regulatory and tax developments across its operational footprint.
Management continues to prioritize efficiency, technological investments, and brand visibility to navigate this challenging landscape, acknowledging that external pressures will heavily influence financial performance in the foreseeable future.