Why did profit fall despite higher revenue?

Revenue grew 9% as the company expanded into more markets, but pre‑tax profit fell 44% because new launches carry high costs. Marketing, compliance, platform fees, and taxes rise before scale kicks in. Early cohorts also need bonuses, which reduce margins until retention improves and payback periods shorten.

How could an Illinois per-wager tax affect operators?

A per-wager tax would raise the cost of every bet regardless of hold, making low-margin bets less attractive and pushing operators to rethink promo strategies. It could increase break-even thresholds, reduce bonus generosity, and shift focus to higher-margin products to protect profitability during market ramp-up.

What is the impact of Brazil betting taxes on margins?

Brazil’s taxes and licensing fees add fixed and variable costs, lowering unit margins relative to early expectations. Operators must invest in compliance, payments, and safer-gambling tools, leaving less room for aggressive bonuses. Profitability improves only when active users scale, promo intensity drops, and product mix shifts toward higher-margin wagers.

What should Australian investors watch next?

Track marketing as a percentage of revenue, changes in tax policy across key jurisdictions, and user growth per state. Improving retention, rising hold, and reduced promo costs per active account are positive signals. Any clarity on Illinois tax debates and the final shape of Brazil’s regime will guide margin expectations.

Global Market Insights

bet365 Today, January 6: US Push Lifts Revenue, Squeezes Profit

ByHuzaifa Zahoor January 6, 2026January 6, 2026

bet365 US expansion is boosting scale but hitting earnings. In its latest financials, revenue rose 9% while pre‑tax profit fell 44%. The push into more US states and Brazil raised operating and tax costs, squeezing margins. This matters for Australian investors tracking global betting trends and local operators exposed to similar economics. We review what is driving the mix shift, how Illinois per-wager tax ideas and Brazil betting taxes change break-even points, and what to watch next for sustainable growth.