Commercial
EBITDA
Definition
Earnings before interest, tax, depreciation, and amortisation. The headline profitability metric reported by listed operators and suppliers.
Key takeaways
- EBITDA is earnings before interest, tax, depreciation and amortisation, the headline profit measure for listed operators and suppliers.
- Gaming duties are operating costs charged before EBITDA, so margins still vary with each market's gaming tax regime.
- Mature operators in stable markets typically run healthy EBITDA margins, with the level depending on vertical mix and tax structure.
Why it matters
EBITDA is the standard profitability measure for both listed operators and suppliers because it strips out capital structure (interest), tax position, and non-cash items (depreciation, amortisation), giving a cleaner view of underlying operating performance. In iGaming the tax point needs care, because gaming taxes are high and vary dramatically by jurisdiction (the UK's remote gaming duty rose from 21% to 40% of profits on 1 April 2026, and US states set their own rates), but gaming duties are operating costs charged before EBITDA. EBITDA removes corporate income tax, not gaming tax, so EBITDA margins still reflect each market's gaming tax structure.
The relationship between revenue (GGR or NGR) and EBITDA defines operator quality. High-NGR operators with low EBITDA margins are spending heavily on marketing, technology, or compliance, often deliberately during growth phases. Mature operators in stable markets typically run healthy EBITDA margins, with the level depending on vertical mix and market tax structure. Adjusted EBITDA is the more frequently quoted variant because the sector has so many one-time items, and the reconciliation between EBITDA and Adjusted EBITDA is itself a watched disclosure.
Sources
- Gambling duty changes - HM Revenue and Customs (GOV.UK)
Frequently asked questions
Why is EBITDA preferred over net profit for iGaming?
Three reasons. Cross-border variation in corporate income tax makes net profit comparisons messy. M&A activity creates large depreciation and amortisation charges that don't reflect operations. And capital structure varies widely between operators. EBITDA strips all of that out, although gaming duties, as operating costs, remain in the figure.
What's a strong EBITDA margin in iGaming?
For mature B2C operators, there is no single benchmark; margins vary with vertical mix, market and tax structure. B2B suppliers often run higher EBITDA margins (40%+ for the strongest software suppliers) because of operating leverage. Below 15% is usually a signal of growth investment, regulatory headwinds, or commercial challenges.