Lottomatica has reached a new milestone in the Italian online gaming market, reporting its highest market share ever—32.4%—for September, part of a broader group revenue increase to €1.72 billion in the first nine months of 2026.
According to the latest results released on Tuesday, Lottomatica averaged a 31.7% market share in the third quarter of 2026, reflecting a 0.9% year-on-year growth, bolstered by a 2.1% rise in its iSports market share and a 0.6% gain in iGaming.
The operator recorded €35.2 billion in bets, an 8% increase from the previous year, contributing to a revenue growth of 5%. Gross Gaming Revenue (GGR) rose to €3.52 billion, marking a 2% increase, while the adjusted EBITDA climbed 8% to €665 million.
Operating cash flow improved to €544.9 million from €504 million in the same period last year, whereas net financial debt stood at €2.16 billion by the end of September.
Lottomatica reiterated its guidance for the full year of 2026, expecting adjusted EBITDA to land between €940 million and €980 million. CEO Guglielmo Angelozzi commented on the strong quarterly results, emphasizing notable 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 further expressed confidence in their growth trajectory, citing favorable market conditions, ongoing strategic execution, and strong cash flow generation.
In the online segment, revenue rose 13% year-on-year to €780.82 million. However, both the sports and gaming franchises showed declines. The sports franchise revenue dipped 1% year-on-year to €376.68 million despite an 11% increase in bets. Lottomatica noted that had the sports betting payout normalized at 80.5% for retail, revenue would have increased by 13%.
Meanwhile, the gaming franchise reported a revenue decrease of 2%, settling at €560.28 million. With Lottomatica operating a substantial retail presence, the company is likely to feel the impact of new proposals in Italy’s 2027 budget bill, which was submitted to parliament earlier this week. The proposals suggest increasing the PREU machine levy on slots from 24% to 25% starting January 1, as well as raising the rate on video lottery terminals from 8.6% to 9.6%. However, slots with at least a 70% payout rate would qualify for a reduced levy of 20%, and the maximum stake per slot game would double to €2, with cap increases on prizes from €100 to €200.
In further developments, Angelozzi mentioned a significant strategic achievement in Q3 with the announcement of a merger with Cirsa. This merger, anticipated to finalize by Q2 next year, will establish Lottomatica as the second-largest publicly traded gaming and sports betting operator globally. Lottomatica reported that integration workstreams are "fully up and running," aiming to be fully prepared for execution immediately after the deal's closure. Financing for the merger has been secured, pending additional approvals, with Cirsa calling an Extraordinary General Meeting for November 30.
