For Q1 2026, Lottomatica recorded revenues of €602 million, up 3% from the previous year. Gross gaming revenue was €1.246 billion, growing by 2%. Total bets increased at an even greater rate, reaching €12.4 billion and representing an 11% uptick.
Digital Business Carries the Main Lift
The online division did most of the work. Online revenue climbed 10% to €265 million, while online bets rose 15%. Lottomatica managed to raise its total online market share to 31.8% due to progress in both its iSports and iGaming verticals.
This trend is especially important when considering the Italian market. The country’s online gambling market becomes increasingly costly and difficult to enter after the licensing reform. Large operators with strong brands and loyal customer bases are better placed to absorb those costs. Smaller rivals may find it harder to defend their share.
Sports Results Were Hit by Payouts
The sports franchise segment had a weaker reported quarter. Revenue fell by 5% to €142 million. Lottomatica attributed that decline to less favourable sports payout conditions compared to Q1 2025.
The fall does not point to a simple drop in customer demand. On a normalized payout basis, Sports Franchise revenue would have risen by 11%.
Gaming Franchise remained relatively stable. Revenue came in at €195 million, being practically the same as in the previous year. This area still gives Lottomatica scale in Italy. However, it did not provide the same growth as online.
Profitability also improved. Adjusted EBITDA increased by 7% to €236 million. On a normalized payout basis, it would amount to €253 million (up 22%). Adjusted net profit grew by 12% to €106 million.
As the numbers suggest, Lottomatica is not relying on one quarter of sports results to shape the story. Instead, it builds strength on the basis of online scale and higher digital activity.
PWO Recovery Adds Support
The integration of PWO, added through the SKS365 acquisition, is also seen as moving in the right direction. According to Lottomatica, PWO’s iGaming market share stood at 5.5% during Q1, recovering half of its market share lost during the migration process. On its part, Total Sports regained its pre-migration market share of 9.0%.
While the acquisition helped Lottomatica gain additional market presence, customer and platform migration have caused temporary friction.
Regulation Keeps Pressure on the Market
Operators in Italy are still working in challenging political conditions. For example, a ban on gambling advertising and sports sponsorships has been in effect since 2019. This rule remains central to debate around legal-market visibility.
For Lottomatica, the Q1 report presents a clear route. The group is focusing on digital growth and managing sports payout volatility. It also appears to be using scale at a time when access to Italy’s online market is becoming more expensive.
