Bet-at-home optimistic about German market despite drop in revenue

The German operator has said it remains positive about the outlook for Germany’s licensed igaming market despite lost revenue in Q1.

Germany.- The German gaming and sports betting operator Bet-at-home has retained its optimism about the opening of the country’s upcoming licensed gaming market despite a drop in revenue in Q1.

In its trading update, Bet-at-home reported that gross betting and gaming revenue for Q1 came in at €30.5m, down 5.5 per cent year-on-year. EBITDA dropped from €9m in Q1 2020 to €6.9m.

The company generated €17.1m from sports betting products in the quarter and €13.2m from online casino.

The company saw a rise in expenses due to increased marketing outlay but also due to costs to come in line with Germany’s new regulatory requirements.

However, the company said that although the implementation of the new requirements caused “significant net revenue losses” for its online casino segment, it believed that increased stability in the regulatory environment would prove beneficial in the long term.

It said: “The significantly increased legal certainty and the ability to plan the future development of Bet-at-home as an established provider with considerable brand awareness in the core market of Germany outweigh this.”

Several operators have criticised Germany’s proposed tax rate on online slots turnover, after a study found it may drive customers to the unlicensed market.

The European Gaming and Betting Association (EGBA) has said that the 5.3 per cent tax rate on turnover may violate EU law by handing an unfair advantage to land-based operators.

Bet-at-home’s board expects group gross betting and gaming revenue for the 2021 financial year to land between €106m and €118m, with EBITDA between €18m and €22m.