OPAP’s Record Revenue Overshadowed by Margin Pressure and Regulatory Hurdles

Greece’s premier gambling operator, OPAP, has posted historic revenue figures for its latest fiscal year. However, the celebratory mood among investors has been tempered by a dual challenge: the high cost of digital expansion and a significant regulatory setback that has blocked a key acquisition.

Strategic Acquisition Blocked by Regulators

A major strategic move by OPAP’s majority shareholder, Allwyn, has been formally abandoned. The planned takeover of rival Novibet was called off after the Hellenic Competition Commission (HCC) raised objections. The regulatory body indicated the deal would solidify the group’s already dominant position in the Greek market.

This development signals that inorganic growth through the acquisition of direct domestic competitors is now largely off the table for OPAP. Investor attention now shifts to internal reorganization. The formal completion of the business combination between the entity, now named “OPAP Holding Société Anonyme,” and Allwyn is anticipated in the second quarter of 2026. Consequently, OPAP remains Allwyn’s sole, yet regulatorily constrained, foothold in Greece.

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Digital Gains Come at a Steep Price

The headline numbers from the 2025 fiscal year are undeniably strong. Gross Gaming Revenue (GGR) advanced by 4.9% to a record €2.4 billion. This growth was powered by the iGaming segment, which surged by an impressive 17% to reach €350.6 million. Revenue from Video Lottery Terminals (VLTs) also demonstrated resilience, increasing by 6%.

Yet this expansion was achieved with considerable investment that weighed on profitability. Operating expenses jumped 14.7% to €488.4 million, driven largely by substantial marketing and personnel costs aimed at bolstering the digital strategy. The result was a compression of key profit metrics. Despite the record top-line figure, EBITDA saw a slight decline to €824.6 million, and net profit fell to €483.4 million. The company’s operational efficiency was impacted by its aggressive push for growth.

In summary, OPAP’s latest report paints a picture of a company achieving record scale but facing immediate pressures on its earnings and longer-term constraints on its growth strategy within its home market.