Bet-at-home, a prominent online betting operator based in Düsseldorf, reported stable revenue figures for the first half of 2025 amidst mounting regulatory challenges in its primary markets. The company announced gross betting and gaming revenue of €25.3 million for the six months ending on 30 June 2025, mirroring results from the previous year. However, net gaming revenue experienced a slight dip, decreasing by 2.5% to €19.7 million, influenced by increased levies.
Interestingly, the company managed to enhance its profitability despite the stagnant revenue. Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items surged to €3 million compared to €1.2 million in the same period last year, and net profit nearly tripled, reaching €1.8 million. This improvement was attributed to reduced marketing expenditures, down by 20.5% to €8.2 million, largely because there was no major summer football tournament necessitating significant promotional efforts.
In Austria, one of Bet-at-home’s crucial markets, the company faced a significant hurdle when the betting levy increased sharply from 2% to 5% of stakes starting 1 April. This regulatory change resulted in an immediate decline in betting activity. In response, Bet-at-home began passing on the cost increase to its customers in June. However, this strategy could potentially undermine the company’s competitive edge, as some competitors have opted to absorb the additional costs themselves.
Moreover, the long-term regulatory landscape in Austria remains uncertain. The country’s new coalition government has made references to potentially evolving the gambling monopoly, which could eventually lead to a more liberalized online gambling sector. At present, a state monopoly persists, with licensed foreign operators engaging in a grey-market environment. The evolution of these reforms could significantly alter market dynamics in the years to come.
Germany, Bet-at-home’s largest market, also presents regulatory challenges. A report by the German Sports Betting Association (DSWV) highlighted a “serious structural problem” within the regulated market, noting that up to 25% of gambling activity might be occurring via unlicensed operators. The DSWV identified restrictive measures, including a €1,000 monthly deposit cap, limitations on bet types, and stringent player affordability checks, as factors driving consumers towards the black market.
Bet-at-home has consistently emphasized that while regulation is necessary, excessively strict rules can undermine licensed operators and counteract the objective of retaining gambling activities within a legal framework. Despite these challenges, the company secured licence renewals in Germany extending until 2027 and received approval to include certain international friendlies in its sportsbook. Nevertheless, management acknowledged that the overarching regulatory constraints continue to hamper revenue growth potential.
Beyond Germany and Austria, Bet-at-home is also dealing with legacy risks, notably the winding down of its former Maltese subsidiary. Although the company anticipates some financial recovery from this process, ongoing disputes over customer claim enforceability and heightened European scrutiny of Malta’s legal framework introduce additional uncertainties. Legal challenges in Germany and Austria persist, with customers seeking reimbursement for historical gambling losses. However, Bet-at-home’s management considers the potential financial impact of these claims to be manageable.
Looking forward, Bet-at-home has maintained its full-year guidance, projecting gross betting and gaming revenue to range between €46 million and €54 million. EBITDA before special items is expected to be between break-even and €4 million. This forecast reflects the unpredictability of regulatory and tax developments across its operational regions. The company’s management continues to focus on efficiency, investments in technology, and enhancing brand visibility as strategies to navigate the challenging environment. However, they acknowledged that external pressures from regulatory changes would remain a critical factor influencing the company’s performance.
While Bet-at-home remains committed to adapting to regulatory environments, the broader industry context indicates a landscape fraught with challenges. As regulatory bodies across Europe tighten their grips, companies like Bet-at-home must balance compliance with maintaining competitive and profitable operations. This situation highlights a broader tension in the igaming industry: the need to protect consumers and uphold market integrity while also fostering a competitive, innovative marketplace.
Counterarguments arise from industry advocates who suggest that overly stringent regulations might stifle innovation and inadvertently push consumers toward less regulated or unregulated markets. These voices argue that a more balanced regulatory approach could ensure consumer protection without undermining market competition and innovation.
In conclusion, Bet-at-home’s experience underscores the complexities of operating within Europe’s highly regulated igaming markets. As they navigate these challenges, future success will likely depend on the company’s ability to adapt to regulatory shifts while maintaining a competitive edge in a rapidly evolving industry landscape.