Q1 2025 financial results for leading iGaming companies
The release of Q1 2025 financial results for major iGaming companies paints a portrait of an industry both maturing and adapting amid regional flux, technological change, and ever-watchful regulators. This quarter, global names such as Betsson, Evolution, Kambi, Caesars, and BetMGM unveiled a complex tapestry of growth, profitability challenges, and above all, decisive pivots in strategy. The numbers spoke clearly: the iGaming landscape is as dynamic as ever, with success increasingly hinging on market diversification, regulatory finesse, and operational innovation.
Betsson rides LatAm surge and bets big on Brazil
Among the standout performers was Betsson, reporting an 18.3% year-on-year rise in group revenue to €293.7 million—a figure bolstered by a striking 70% boost in Latin American revenue. This trajectory underscores the strategic payoff of Betsson’s early commitment to LatAm, particularly Brazil, where the company solidified its market presence by securing a full sportsbook and online casino licence in March. Revenue from Latin America soared to €74.5 million, signaling both regulatory opportunity and robust consumer demand.
CEO Pontus Lindwall was quick to point out the dual pillars of Betsson’s Q1 success: record high customer deposits (up 15.2% to €1.59 billion) and significant expansion in core verticals. Casino revenue led the pack at €212.3 million, comprising 72% of total income, while sportsbook posted year-on-year growth of 21.6%. Notably, Betsson’s active customer base inched up 7%—a testament to the region’s growing digital adoption, even as global registered customers dipped 0.7% due to market exits elsewhere.
Lindwall also contextualized performance against a backdrop of global economic uncertainty, arguing that historically, demand for online gaming products remains structurally resilient. This was reflected in net profit, which climbed 13.1% to €48.4 million, even as operational costs ticked up. Bottom line: geographic breadth, proprietary tech, and a laser focus on player experience are insulating Betsson from broader economic tremors.
Evolution faces challenge as regulatory pressure drags on earnings
While Betsson soared, Evolution, the industry’s preeminent live casino supplier, saw a more complicated quarter. Although Q1 revenue climbed 3.9% year-on-year to €520.9 million, the rate of growth fell sharply from previous quarters, and EBITDA slid 1.1% to €342 million. Investors took note—Evolution’s share price dropped 16% post-earnings, driven by a combination of softer growth, declining profitability metrics, and strategic decisions in response to mounting regulatory scrutiny.
The biggest drag stemmed from two main sources: first, technical countermeasures to address criminal cyber activity in Asia—a key revenue driver—compressed growth in that region; second, Evolution moved proactively to ring-fence more regulated markets in Europe, following a period of UK licence review and broader scrutiny of operator practices. The upshot was increased compliance costs and immediate revenue pressures, particularly in markets with low channelization rates.
CEO Martin Carlesund underscored the company’s commitment to supporting regulatory authorities and argued these efforts would yield longer-term resilience, even if near-term profitability is affected. With live casino accounting for the lion’s share of income (€448.7 million in Q1), and RNG growing steadily, Evolution’s core business remains solid—yet the quarter also exemplified the new normal for major B2B suppliers: proactive, sometimes costly, compliance investments to sustain long-term leadership.
Kambi feels margin pressure but eyes future with diversification and new markets
For sportsbook technology supplier Kambi, Q1 2025 was a story of resilience amid profit headwinds. Revenue fell 4% to €41.5 million compared to the previous year, with operating profit dropping sharply to €0.8 million, a reflection of both rising expenses and the inherent volatility of sports outcomes—this time, an “almost unprecedented” run of player-friendly results during March Madness in the US dampened margins across the board.
Despite the setback, Kambi’s management maintained a forward-looking stance. Excluding last year’s transition fees, underlying revenue grew 7%, and CEO Werner Becher pointed to operational wins: the crucial Nevada licence, a key role in newly regulated Brazil (providing platform tech for Stake, BetMGM, and others), and being chosen as the long-term sports betting partner for Ontario Lottery and Gaming Corporation. Most notably, Kambi is actively reducing its historic dependence on its three largest clients (down to 39% revenue share), instead courting state-owned and monopoly operators to broaden its base and improve revenue resilience.
Becher’s candor was telling: “Financial performance was below what should be expected,” he conceded, but emphasized the ongoing pivot toward sustainability, geographic diversification, and long-term value generation as the bedrock for recovery. In a sector where short-term volatility is the norm, Kambi’s approach is aligned with the new iGaming paradigm: growth through adaptability and global reach.
Caesars and BetMGM signal the rising tide of digital transformation
For industry giants straddling both land-based and digital arenas, Q1 brought clear evidence that online operations are now the primary engine of improvement—even amid continued challenges. Caesars Entertainment illustrated this shift by narrowing its net loss from $158 million to $115 million, powered by a dramatic turnaround in Caesars Digital. While Las Vegas and regional revenues remained broadly flat (Las Vegas dipped 1.9%, regional revenue edged up 1.7%), digital revenue jumped nearly 19% to $335 million, and digital adjusted EBITDA soared from $5 million to $43 million.
This surge rebuilds the narrative for US operators: after years of upfront investment and fierce market competition, operational discipline and customer acquisition strategies are now producing tangible digital profitability. Executives highlighted continued investment in product enhancements and the entry into new, legal online betting jurisdictions as catalysts for further growth in 2025. At the same time, Caesars announced reduced capital spend and lower interest expenses as priorities—a move that should support improved free cash flow and further share buybacks in coming quarters.
Meanwhile, BetMGM, 50% owned by Entain, posted standout growth of 34% year-on-year, outpacing almost all other US-facing rivals in revenue expansion. This gives further weight to the thesis that regulated digital gaming is not just supplementing, but in many cases overtaking, bricks-and-mortar performance in key North American markets.
Navigating risk, regulation, and opportunity in a rapidly evolving industry
If there is a uniting thread across these Q1 2025 results, it is the industry-wide imperative to adapt—sometimes rapidly—to shifting regulatory sands, economic headwinds, and regional performance disparities. From Betsson’s LatAm-driven growth to Evolution’s compliance-driven recalibration and Kambi’s bet on global diversification, iGaming leaders are proactively staking their futures on technology, new markets, and collaborative regulatory engagement.
- New markets fuel growth, as seen in Brazil and North America,
- Compliance is no longer just a checkbox item, but a strategic cornerstone,
- Digital is powering margin improvement—even as it demands investment and adaptability.
As the digital entertainment economy matures in 2025, these companies’ Q1 narratives mirror the broader societal shift to regulated, technology-enabled gaming—one where long-term winners will be defined not just by size, but by speed, flexibility, and the ability to build trust with consumers and regulators alike. Investors, partners, and players are watching closely—and so, too, is a world in which iGaming is an ever-more significant pillar of the digital experience.
