German online betting operator Bet-at-Home.com AG reported a 16.1% decline in gross gambling revenue (GGR) for the first quarter of 2026, landing at €11.34 million. The drop stems directly from the company's decision in June 2025 to pass a 3 percentage point hike in Austria's gambling tax (from 2% to 5%) onto its customers, while several rival operators licensed in Austria chose to absorb the increase themselves. As a result, Bet-at-Home lost significant market share in Austria, with sportsbook stakes falling by €22 million compared to the previous year.
Key Financial Figures and Stakes Contraction
Sportsbook stakes tumbled 24.4% year-on-year in Q1 2026, reflecting the price disadvantage created by the pass-through strategy. The group swung from a €887,000 profit in Q1 2025 to a consolidated loss of €461,000, pushing EBITDA into negative territory—the first time since Banijay Group N.V. sold its controlling 53.9% stake in the company on January 2, 2026. This quarter was also the first full reporting period under Bet-at-Home's new standalone structure, as Banijay shifted focus to integrating its Betclic and Tipico Sportwetten merger into the newly formed Banijay Gaming unit.
The Cost of Passing Tax to Customers
Management had flagged the competitive risk in its H1 2025 report, noting that passing the tax increase could erode price competitiveness if rivals chose to absorb it. That risk materialized fully in Q1 2026, the first complete quarter where the pass-through applied across all Austrian-facing operations. iGamingBusiness reported in September 2025 that most Austrian-licensed competitors had indeed decided to internalize the 5% tax burden, maintaining stable pricing for bettors. Bet-at-Home's contrasting approach drove a measurable shift in player activity away from its platform, validating earlier warnings from analysts.
Outlook and Regulatory Challenges
CEO Stefan Sulzbacher reiterated the full-year 2026 guidance of GGR between €46 million and €54 million, with EBITDA before special items reaching up to €4 million, citing the upcoming FIFA World Cup in June and July as a potential positive catalyst. The company maintained a Q1 marketing budget of €4.49 million—down 7.4% year-on-year—reserving the bulk for World Cup-related customer acquisition. However, Bet-at-Home faces mounting regulatory headwinds: Germany's Interstate Treaty on Gambling continues to restrict online product offerings, while Austria is actively considering further hiking the gambling tax to 10%, which would place the country among the highest-tax jurisdictions in Europe. Such a move would exacerbate Bet-at-Home's competitive disadvantage if the pass-through strategy remains unchanged.
Broader Industry Implications
Separately, the Court of Justice of the European Union (CJEU) ruled against Maltese-licensed betting service Lottoland, opening the door for a German player to reclaim gambling losses from illegal online contracts. This decision could trigger a wave of consumer fund-recovery claims across Europe, adding compliance and litigation risks for operators like Bet-at-Home that hold multiple licenses. The combined pressures of tax pass-through, regulatory tightening, and potential retrospective liabilities underscore the challenges facing the online betting sector in the region.