Lottomatica Triumphs in Italy: Online Growth Drives Billion-Euro Revenue

The Italian betting market is undergoing significant transformation, but for major players, the strategy seems to be paying off. Lottomatica, a heavyweight listed on Euronext Milan, has released its H1 figures, painting a picture of remarkable stability. In an environment shaped by a new regulatory framework, the company has managed to solidify its status as a leading force in Southern Europe. With total revenue reaching 1.2 billion euros in the first six months of the year, it is evident that the demand for legal gambling remains strong as long as providers master digital transformation.

A shift in balance within the group is particularly interesting. While physical betting shops in Italian cities once formed the backbone, the internet is increasingly taking over as the growth engine. Purely physical franchises in sports betting and gaming saw slight declines. However, these losses were more than compensated for by the strong performance of online platforms. This suggests that players in Italy, much like those in Germany, are increasingly preferring the comfort of their own homes or smartphones for their wagers.

Numbers and facts

The detailed H1 balance sheet reveals a clear trend. Total revenue of 1.2 billion euros represents a 5 percent increase compared to the previous year. this growth was driven almost entirely by the online sector, which rose by 6 percent to a significant 525 million euros. In contrast, revenue for the sports franchise fell by 1 percent to 275 million euros, while the gaming franchise saw a 2 percent drop to 185 million euros.

Profitability is especially impressive, reflected in the Adjusted EBITDA. This figure amounted to 465 million euros, up 10 percent from H1 2025. The second quarter alone contributed 230 million euros, a 14 percent increase, to this result. Adjusted net profit for the full six-month period was recorded at 196 million euros. Despite these positive earnings, Lottomatica still carries a substantial net financial debt of 2.1 billion euros, though this is considered manageable given its market value and cash flow.

"Thanks to this we have consistently delivered superior returns to our shareholders and distributed more than 10% of our market capitalisation since June 2025. On the back of this solid quarter, we also reiterate our view to close the FY 2026 Adj. EBITDA at the top end of the guidance." - Guglielmo Angelozzi, Chairman and CEO of Lottomatica

Background

Lottomatica's success is closely linked to the market structure in Italy. According to the Blask Index, Italy is the largest market in the European Union with a Competitive Earnings Baseline of 6.4 billion US dollars spread across 135 brands. Lottomatica succeeded in increasing its share of the total online market to 31.6 percent in Q2. This places the company fifth among the strongest brands, with Flutter Entertainment's Sisal currently leading the market, followed by BetFlag, GoldBet, and bet365.

The new regulatory rules in Italy seem to favor established large scale operators. These companies possess the necessary budgets to implement strict requirements and technical standards. The increase in betting activity is also notable: online bets rose by 12 percent, while total bets climbed to 24 million. This indicates that players remain loyal to the legal market despite stricter oversight.

Why it matters for German players

For German players, development in Italy serves as an exciting indicator. Italy and Germany belong to the five largest regulated markets in Europe alongside the UK, France, and Spain. When a giant like Lottomatica flourishes despite high debt and strict rules, it shows that a regulated environment offers security for customers. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) pursues similar goals: channeling players into the legal market and ensuring player protection.

Anyone wishing to play safely in Germany should prioritize the whitelist provided by the Joint Gambling Authority of the States (GGL). Only there are strict limits guaranteed. These include the monthly deposit limit of 1,000 euros across all providers (LUGAS system) and the 1 euro per spin limit on virtual slots. While Lottomatica grows through economies of scale in Italy, German providers must prove they can remain competitive despite restrictive features like the 5-minute break or identity verification via Video-Ident.

What it means for GGL-licensed casinos

The industry in Germany often looks enviously at Italy, as the online casino tax is structured differently there, potentially allowing for higher Return to Player (RTP) rates. Nevertheless, GGL-licensed casinos must learn from the Lottomatica report: growth is almost exclusively digital now. Anyone without an excellent mobile offering will lose out to the competition. The GGL will monitor the situation in Italy closely to see how market consolidation affects youth and player protection. For German licensees, the success of major EU players means that professionalism and technological compliance are the most vital factors for long-term survival. Retreating to unregulated markets (Curacao/MGA) is no longer a sustainable option due to legal enforcement in Germany.