German online gambling operator Bet-at-home.com AG reported a 16.1% year-over-year decline in gross gambling revenue (GGR) for the first quarter of 2026, amounting to €11.34 million. The drop was primarily attributed to the operator's decision in June 2025 to pass on Austria's increased gambling tax of 5% (up from 2%) to its customers, while several competitors chose to absorb the levy themselves.
Tax Pass-Through Backfires, Market Share Shrinks
The company's sportsbook stakes volume plummeted by 24.4%, a reduction of approximately €22 million in wagering activity. Bet-at-Home had flagged the competitive risk in its H1 2025 management report, warning that passing on the tax could erode its market position. Q1 2026 was the first full quarter where the pass-through was in effect across all Austrian-facing operations, and the data confirmed the feared disadvantage: rivals who maintained stable pricing attracted customers who otherwise would have bet with Bet-at-Home.
First Quarterly Report Post-Banijay Divestiture
This quarter also marked the first earnings report since Banijay Group N.V., the French entertainment and gaming conglomerate listed on Euronext Amsterdam, sold its 53.9% controlling stake in Bet-at-Home on January 2, 2026, to focus on integrating Banijay Gaming. The company recorded a consolidated net loss of €461,000, compared to a profit of €887,000 in Q1 2025. EBITDA turned negative, highlighting near-term operational pressure. CEO Stefan Sulzbacher reiterated the full-year GGR guidance of €46 million to €54 million, with EBITDA before special items of up to €4 million, citing the upcoming FIFA World Cup in June and July as a positive catalyst. Marketing expenditure in Q1 stood at €4.49 million (down 7.4% year-on-year), to be deployed for targeted World Cup customer acquisition.
EU Top Court Ruling on Player Refunds
Separately, the European Court of Justice (CJEU) recently ruled in favor of a German player seeking to recover gambling losses from Maltese-licensed operator Lottoland. The court upheld that member states can prohibit unauthorized online gambling contracts and provide consumers with avenues for compensation. This decision could increase compliance costs and litigation risks for operators in the German and Austrian markets.
Outlook: Austria May Hike Tax to 10%
Bet-at-Home also faces headwinds from Germany's Interstate Treaty on gambling restrictions and ongoing discussions in Austria to raise the gambling tax further to 10%. If implemented, Austria would become one of the highest-tax jurisdictions in Europe, squeezing operator margins and potentially accelerating consolidation in the iGaming sector.