Bally’s Intralot recorded higher revenue but lower adjusted EBITDA during the second quarter of 2026 as the UK’s increased Remote Gaming Duty affected the profitability of its international online operations. Quarterly revenue reached €276.1 million, up 3% from Q1, while adjusted EBITDA declined to €84.6 million from €100.2 million.
Q2 revenue: €276.1 million, up 3% quarter on quarter.
Q2 adjusted EBITDA: €84.6 million, down from €100.2 million in Q1.
Q2 adjusted EBITDA margin: 30.7%, compared with 37.4% in Q1.
UK tax impact: Approximately €34 million following the Remote Gaming Duty increase from 21% to 40%.
Tax mitigation: Revenue growth and cost optimisation absorbed approximately 65% of the impact.
UK online revenue: Up 11.6% year on year at constant currency and reached a record quarterly level.
H1 revenue: €544.2 million, with adjusted EBITDA of €184.8 million and a 34% margin.
Bally’s International Interactive contribution: €377.6 million in H1 revenue and €132.8 million in adjusted EBITDA.
Adjusted net debt: €1.62 billion, with pro forma leverage of 4.05x.
Liquidity: €287.3 million, including €192.3 million in cash and €95 million in undrawn credit.
Pro forma 12-month performance: €1.06 billion in revenue and €399.9 million in adjusted EBITDA.
According to Bally’s Intralot’s preliminary H1 2026 results, the new UK Remote Gaming Duty created an estimated €34 million adjusted EBITDA impact during Q2.
The tax rate increased from 21% to 40% on 1 April, making the quarter the first full reporting period under the new regime. Ace Alliance previously examined the commercial and channelisation concerns surrounding the UK Remote Gaming Duty increase.
Bally’s Intralot said revenue growth contributed €10.1 million towards offsetting the tax impact, while operating cost optimisation and other adjustments contributed a further €11.3 million. Together, these measures mitigated close to 65% of the additional charge.
UK online revenue increased 5.3% from Q1 and 11.6% year on year at constant currency, reaching an all-time quarterly high. Revenue from Spain rose 9.7% quarter on quarter, helping Bally’s International Interactive generate €193.8 million during Q2.
The figures indicate continued demand within a UK remote market that generated £2 billion in quarterly gross gambling yield during the most recently covered UKGC reporting period. However, the tax increase placed greater pressure on the amount of revenue converted into earnings.
Bally’s International Interactive was consolidated following its acquisition by Intralot in October 2025. Consequently, the sharp year-on-year increases in group revenue and adjusted EBITDA primarily reflect the expanded business rather than organic growth alone.
Q2 revenue increased from €86.5 million in 2025 to €276.1 million, while adjusted EBITDA rose from €30 million to €84.6 million. On a sequential basis, however, EBITDA fell by €15.5 million between Q1 and Q2 as the higher UK duty took effect.
Across the first half, the acquired interactive division contributed €377.6 million in revenue and €132.8 million in adjusted EBITDA, representing a margin of 35.2%.
The legacy Intralot business generated €166.5 million in H1 revenue, down 8.5% on a reported basis. Management attributed the decline partly to softer US lottery activity, currency movements and market seasonality in Turkey.
Adjusted net debt increased to €1.62 billion from €1.49 billion at the end of 2025. The company said leverage was temporarily raised by an €85 million payment connected with its 15-year gaming-machine monitoring licence in Victoria, Australia.
Bally’s Intralot also secured £261.8 million in new term facilities during July. The funding may support general corporate requirements, refinancing and the group’s acquisition plans.
Its proposed purchase of William Hill and 888 owner Evoke remained subject to shareholder and regulatory approval when the results were released. With the transaction still progressing, the group must balance further expansion against higher leverage and the continuing effect of the UK tax increase.
