Bally’s Intralot recorded higher revenue during the second quarter of 2026, supported by strong performance from its international online operations, though a sharp increase in UK gambling taxes significantly reduced profitability during the period.
The company reported (pdf) group revenue of €276.1 million for the three months ending 30 June, representing a 3% increase from €268.1 million in the previous quarter. Growth came primarily from the Bally’s International Interactive (BII) division, where online activity in the UK and Spain delivered stronger results.
Despite the revenue increase, adjusted EBITDA declined to €84.6 million from €100.2 million in the first quarter. The company attributed most of the decline to the rise in UK remote gaming duty, which increased from 21% to 40% on 1 April. Bally’s Intralot estimated the tax change reduced second-quarter adjusted EBITDA by approximately €34 million.
Management said revenue gains and cost-saving measures helped reduce the effect of the higher tax burden. According to the company, revenue growth contributed €10.1 million while operating efficiencies and other actions generated an additional €11.3 million, offsetting close to 65% of the impact.
At the bottom line, Bally’s Intralot reported a net loss attributable to Bally’s of $43.4 million during the quarter.
Online Operations Deliver Record UK Performance
Digital gaming remained the strongest contributor to the group’s results, according to Next.io. Bally’s International Interactive generated €193.8 million in revenue during the second quarter, a 5.4% increase from the previous quarter.
The UK market produced particularly strong results. Bally’s Intralot reported record net gaming revenue in the country, with online revenue rising 5.3% quarter-on-quarter. The company also highlighted year-on-year growth of 11.6% on a constant currency basis during Q2.
Spain also contributed to the online division’s expansion. Revenue from Spanish operations increased 9.7% compared with the first quarter, helping support overall growth across the BII segment.
The second quarter continued a trend established earlier in the year. For the first six months of 2026, group revenue reached €544.2 million, with BII accounting for €377.6 million of that total. The online division also generated €132.8 million in adjusted EBITDA during the period.
Including the acquired business, Bally’s Intralot reported adjusted EBITDA of €184.8 million during the first half of the year. On a pro forma basis, the combined business generated €1.06 billion in revenue and €399.9 million in adjusted EBITDA over the 12 months ending 30 June 2026.
Bally’s completed the acquisition of its international interactive business in October 2025, meaning the first half of 2026 marked the first full six-month reporting period that included BII’s contribution.
Legacy Operations Face Challenges in Key Markets
While digital operations expanded, the company’s legacy businesses experienced weaker performance.
Revenue from legacy operations fell to €166.5 million in the first half, down from €182 million during the same period a year earlier. Legacy adjusted EBITDA declined 13.6% to €52.1 million.
The B2B segment generated €128.1 million in revenue, representing a 10.1% decrease from the previous year. Bally’s Intralot identified the United States as the principal factor behind the decline. Revenue in the US market fell 11.7% on a constant currency basis as lottery activity softened and equipment sales decreased compared with the prior year.
The legacy B2C division also posted lower results. Revenue slipped to €38.5 million, while adjusted EBITDA fell to €10.9 million.
Turkey’s Bilyoner business accounted for much of the pressure on the B2C segment. During the second quarter, Bilyoner revenue declined 21.8% from the first quarter. For the first half, revenue fell 5.5% in euro terms to €29.5 million and adjusted EBITDA dropped 22.8% to €8.9 million.
The company noted that betting volumes in Turkey increased 28.9% in local currency, exceeding the broader online sports betting market’s growth rate. However, changes to remuneration arrangements and depreciation of the Turkish lira against the euro weighed on reported results.
By the end of June, Bally’s Intralot reported adjusted net debt of €1.62 billion. The company said its adjusted net leverage ratio of 4.05x was temporarily elevated due to an €85 million capital expenditure payment linked to a 15-year electronic gaming machine monitoring licence in Victoria, Australia.
Evoke Deal Advances Through Approval Process
Alongside its financial results, Bally’s Intralot provided an update on its planned acquisition of Evoke, the owner of William Hill and 888.
The company announced in June that it had agreed a transaction valued at approximately £243.1 million. Regulatory reviews and shareholder approval procedures remain ongoing, with Evoke shareholders scheduled to vote on the proposal at a general meeting on 17 August.
Bally’s Intralot stated that shareholders representing more than 40% of Evoke’s share capital have already indicated support for the acquisition.
To support future corporate requirements, including acquisition-related plans, the company recently secured a £261.8 million senior secured sterling term facilities agreement with institutional lenders. The financing package carries a three-year term.
Recent results from Evoke showed pressure from the same UK tax environment affecting Bally’s Intralot. Evoke reported a 12% decline in EBITDA during the second quarter after a £46 million year-on-year increase in gaming duties, largely linked to the UK market.
The company also addressed investor concerns related to financing discussions surrounding Bally’s Corporation’s proposed Bronx casino development. Chief Executive Officer Robeson Reeves stated that Bally’s Intralot is “a separate, independently listed legal entity.”
Reeves added that Bally’s Intralot’s “trading performance, strategic plans, and balance sheet remain strong” and said it does not expect Bally’s Corporation’s financing process to have a material adverse effect on the business.