Lottomatica has achieved a record high market share in Italy's online gaming sector, indicating a strong performance for the company. In the first nine months of 2026, group revenue rose to €1.72 billion, reflecting robust growth in online betting.
According to the latest results published on Tuesday, Lottomatica’s online market share hit 32.4% in September, marking a significant milestone. The company averaged a market share of 31.7% for the third quarter, which is an increase of 0.9% compared to the previous year, bolstered by a 2.1% rise in iSports market share and a 0.6% gain in iGaming.
The operator saw a total of €35.2 billion in bets placed during the first nine months of the year, an increase of 8% compared to a year earlier, driving group revenue up by 5%. Gross gaming revenue (GGR) also saw an uplift to €3.52 billion, which is a 2% increase, while adjusted EBITDA jumped 8% to €665 million.
Operating cash flow improved to €544.9 million, up from €504 million during the same period last year, and net financial debt was reported at €2.16 billion at the close of September.
Lottomatica has maintained its full-year 2026 guidance, expecting adjusted EBITDA to remain at the top end of the target range of €940 million to €980 million.
Guglielmo Angelozzi, the CEO of Lottomatica, emphasized the company's solid quarterly results and ongoing growth in online and sports betting. "The third quarter of 2026 marks another strong quarter for Lottomatica, with double-digit growth in Online and Sports volumes, and in Adjusted EBITDA normalised (+17% YoY at normalised payout)," he stated.
He expressed confidence in the company's growth, underscored by favorable market conditions, effective execution of strategy, and strong cash flow generation.
Despite the progress in online gaming, Lottomatica reported declines in its sports and gaming franchises. Online revenue rose 13% year-on-year to €780.82 million during the first nine months, whereas revenue from the sports franchise dipped 1% to €376.68 million, even with an 11% increase in bets, primarily driven by unfavorable payouts for players. If the sports betting payout had been normalized to 80.5% for retail, revenue would have increased by 13%.
Lottomatica's gaming franchise reported revenue of €560.28 million, which is a 2% decrease from the previous year. With Lottomatica operating a significant retail estate, the company may face challenges due to new proposals in Italy’s 2027 budget bill that was presented to parliament earlier this week. This budget includes plans to raise the PREU machine levy on slots from 24% to 25% starting January 1, along with an increase in the rate for video lottery terminals from 8.6% to 9.6%. For slots that offer a minimum payout of 70%, a reduced rate of 20% would apply, while the maximum stake per slot game would double to €2, and maximum prizes would increase from €100 to €200.
In terms of corporate strategy, Angelozzi mentioned a significant development in Q3, referring to the announced merger with Cirsa. This merger is expected to finalize in Q2 of next year, potentially creating the second-largest publicly traded gaming and sports betting operator globally. In its 9M presentation, Lottomatica stated that integration plans are already in full effect, aiming to be fully prepared for execution on the day the merger closes. Financing has already been arranged, with the next step being to obtain further approvals, as Cirsa has scheduled an extraordinary general meeting for November 30.
