Lottomatica has achieved a record market share within the Italian online gaming sector, reporting a group revenue of €1.72 billion for the first nine months of 2026. The company's online market share hit 32.4% in September, representing a significant achievement.
In the third quarter of 2026, Lottomatica's market share averaged 31.7%, reflecting a 0.9% year-on-year increase. This growth is attributed to a 2.1% rise in its iSports market share and a 0.6% increase in iGaming share.
The operator saw a total of €35.2 billion placed in bets during the first three quarters of 2026, marking an 8% increase from the previous year. Group revenue grew by 5%, and the Gross Gaming Revenue (GGR) rose to €3.52 billion, up by 2%. Adjusted EBITDA also experienced a boost, climbing 8% to reach €665 million.
Lottomatica reported operating cash flow of €544.9 million, an increase from €504 million in the same period last year. As of the end of September, the company’s net financial debt stood at €2.16 billion. The company reaffirmed its full-year 2026 guidance, projecting adjusted EBITDA will reach the upper end of the target range of €940 million to €980 million.
Lottomatica's CEO, Guglielmo Angelozzi, emphasized the robust performance seen in the third quarter, highlighting a strong growth trajectory 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 normalized (+17% YoY at normalised payout)," he stated. He expressed confidence moving forward, crediting favorable market conditions and solid cash flow generation.
Despite the increase in online revenue, which rose by 13% year-on-year to €780.82 million, both the sports and gaming segments reported declines. The sports franchise revenue fell by 1% year-on-year to €376.68 million, despite an 11% increase in bets due to increased payouts benefiting players.
Moreover, Lottomatica indicated that if retail sports betting had a normalized payout of 80.5%, revenue would have climbed 13%. The gaming franchise revenue also dropped by 2%, landing at €560.28 million.
The company operates a large retail footprint, which may affect its performance due to new proposals in Italy's 2027 budget bill. This bill aims to increase the PREU machine tax on slot machines from 24% to 25% starting January 1, 2027, and raise the tax on video lottery terminals from 8.6% to 9.6%. However, slots offering at least 70% payout would benefit from a lower rate of 20%, with the maximum stake for slot games doubling to €2.
Additionally, Angelozzi discussed a significant strategic advancement with the impending merger with Cirsa, announced in September. This merger is expected to finalize in the second quarter of next year, positioning the combined entity as the second-largest listed gaming and sports betting operator globally. Integration efforts are already in full swing, with plans to be completely prepared to implement the integration on the closure date. Financing has been secured, and additional approvals are the next priority, with Cirsa holding an extraordinary general meeting on November 30.
