Lottomatica’s position as the leader of Italy’s gambling market has been reaffirmed in the group’s latest financial report. At the same time, the company’s management is taking steps to complete its all-share merger with Spanish giant CIRSA.
The group, listed on the Milan Stock Exchange, continues to maintain its dominant position in the Italian gambling market. As of Q3 2026, its share of the online betting market reached 31.7%, up 0.9 percentage points compared to 2025. The company’s share of the online sports betting market increased by 2.1 percentage points to 34.8%, while its share of the online gaming market rose by 0.6 percentage points to 31.2%.
The group’s total revenue for the first nine months of 2026 increased by 5% year-on-year to €1.71bn (approximately $1.91bn). Revenue for the third quarter also rose by 5%, reaching €537m (approximately $601m). The positive performance was driven by a 2% increase in gross gaming revenue (GGR), which reached €3.5bn (approximately $3.92bn) between January and September 2026.
According to the group’s financial report, adjusted EBITDA increased by 8% year-to-date to €715m (approximately $800m), while Q3 adjusted EBITDA rose by 3% to €200m (approximately $224m).
Total net profit for the nine months ended September 2026 amounted to €155.3m (approximately $174m), compared to €98.3m (approximately $110m) in the same period a year earlier.
“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,” said Guglielmo Angelozzi, Chairman and Chief Executive Officer of Lottomatica Group.
“We also reached a major strategic milestone with the announced acquisition of CIRSA, which will significantly enhance our scale and future growth opportunities.
“Looking ahead, we remain confident in our growth trajectory, supported by favourable market dynamics, continued execution of our strategy and strong cash flow generation.”
Lottomatica navigates the disconnect between Italy’s online and land-based gambling sectors
Overall, Lottomatica continued to perform well in 2026, with both revenue and profit increasing. However, as of September, the group’s net financial debt had reached a considerable €2.16bn (approximately $2.42bn), up from €2.1bn (approximately $2.35bn) a year earlier.
Nevertheless, the revenue and profitability figures are likely to strengthen the company’s standing with investors ahead of its merger with CIRSA. The deal will allow Lottomatica to expand its presence in Spain and Spanish-speaking Latin American markets.
However, the financial results also reflect a broader trend observed across Italy over the past year: a growing disconnect between the online sports betting and land-based betting sectors, driven by regulatory factors.
Lottomatica’s revenue of €1.7bn was split across its online business, sports betting and gaming divisions. Of these three segments, only online recorded growth, with revenue increasing by 13% to €781m (approximately $874m) for the first nine months of the year, including €256m (approximately $286m) in Q3.
In contrast, the sports betting division saw revenue decline by 1% to €377m (approximately $422m) for the first nine months of the year and €101m (approximately $113m) in Q3. The gaming division also recorded a decline, with revenue falling by 2% to €560m (approximately $627m) over nine months and €180m (approximately $201m) in the third quarter.
Lottomatica attributed the difference in revenue performance between the segments to the generally positive performance of the Italian online gambling market and the previously mentioned increase in the group’s market share. By contrast, the sports betting division was affected by a higher payout rate.
Growth in the online segment has also been supported by the new regulatory framework. The new licensing system came into effect in November, providing significantly greater stability for the online market.
The land-based sector, meanwhile, remains in a state of uncertainty. Prime Minister Giorgia Meloni refused to approve a reform of land-based gambling regulations as part of the 2027 budget, effectively removing the issue from Italy’s political agenda for 2026.
Italian banks remain supportive of Lottomatica
Italian investment banks Intermonte and Banca Akros expect measures included in Italy’s 2027 budget to have a limited impact on Lottomatica’s operations. The assessment follows the approval of modest increases in gambling taxes and licensing fees.
The 2027 budget proposal, which has yet to receive final approval, includes a 1% increase in taxes on AWP gaming machines. This measure will be accompanied by an increase in the maximum stake to €2 (approximately $2.24) and a maximum prize limit of €200 (approximately $224). All proposals remain subject to parliamentary approval.
According to Intermonte estimates, Lottomatica’s annual capital expenditure related to concession requirements will amount to approximately €90m–€100m (around $101m–$112m) between 2027 and 2029. However, given Lottomatica’s planned business expansion, these measures are expected to have a limited overall impact on the company’s financial outlook.
The key date will be 30 November, when Lottomatica and CIRSA shareholders are expected to vote on the final terms and approval of the merger.
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