v3.26.1
SEGMENTS AND DISAGGREGATION OF REVENUE
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENTS AND DISAGGREGATION OF REVENUE
3. SEGMENTS AND DISAGGREGATION OF REVENUE
The Group has two reportable segments:
•U.S.; and
•International
The Group’s chief operating decision maker (“CODM”) is the Group’s Chief Executive Officer.
The CODM uses Adjusted EBITDA to allocate resources for each operating segment, which is derived predominantly from the annual budget and forecasting processes. The CODM evaluates performance based on the Adjusted EBITDA of each operating segment by comparing actual results to previously forecasted financial information on a monthly basis. Adjusted EBITDA of each segment is defined as net income (loss) before income taxes; other (expense) income, net; interest expense, net; depreciation and amortization; transaction fees and associated costs; restructuring and integration costs; legal settlements/(loss contingencies) and gaming tax disputes; impairment of property and equipment, intangible assets, right-of-use assets and goodwill and share-based compensation charges.
The Group manages its assets on a total company basis, not by operating segment. As the CODM does not regularly review any asset information by operating segment, the Group therefore does not report asset information by operating segment.
The following table presents the Group’s segment revenue information:
Three months ended
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June 30,
($ in millions)2026202520262025
Revenue
U.S.
Sportsbook$1,039 $1,219 $2,183 $2,353 
iGaming1
577 507 1,141 979 
Other67 65 122 125 
U.S. segment revenue1,683 1,791 3,446 3,457 
International
Sportsbook1,190 1,041 2,267 1,921 
iGaming1
1,358 1,268 2,744 2,318 
Other95 87 173 156 
International segment revenue2,643 2,396 5,184 4,395 
Total reportable segment revenue$4,326 $4,187 $8,630 $7,852 
1.iGaming revenue for US includes iGaming and Poker and for International includes iGaming, Poker and Lottery.
The following table presents disaggregated revenue for the International segment:
Three months ended
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June 30,
($ in millions)2026202520262025
UKI 1
$971 $936 $1,871 $1,818 
Southern Europe and Africa 2
896 657 1,836 1,105 
Asia Pacific 3
398 402 703 715 
Central and Eastern Europe 4
170 138 330 278 
Brazil 5
72 44 146 53 
Other regions 6
136 219 298 426 
Total International segment revenue$2,643 $2,396 $5,184 $4,395 
1.UKI represents Sky Betting & Gaming, Paddy Power and Betfair UK and Ireland operations as well as the tombola brand.
2.Southern Europe and Africa comprises the Italian operations of our Sisal, Snai (effective from the acquisition date of April 30, 2025) and PokerStars brands as well as Sisal’s business in Turkey and Morocco and PokerStars’ Southern European operations (beginning January 1, 2026).
3.Asia Pacific includes our Sportsbet business in Australia and Junglee in India (until August 22, 2025).
4.Central and Eastern Europe comprises Adjarabet in Georgia and Armenia together with MaxBet in Serbia, Bosnia Herzegovina, North Macedonia and Montenegro.
5.Brazil reflects our Betfair and Betnacional (effective from the acquisition date of May 14, 2025) operations in the region.
6.Other regions comprise PokerStars’ non-Italian and Southern European operations (beginning January 1, 2026, PokerStars Southern Europe operations formed part of the Southern Europe and Africa region, and beginning April 1, 2026, PokerStars’ North America operations formed part of the US region, respectively) and Betfair’s non-Brazilian business.
The information below summarizes revenue from external customers by country for the three and six months ended June 30, 2026 and 2025:
Three months ended
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June 30,
($ in millions)2026202520262025
U.S.$1,590 $1,738 $3,280 $3,367 
UK882 849 1,686 1,648 
Italy783 602 1,624 1,007 
Australia401 358 705 629 
Ireland80 77 158 152 
Rest of the world590 563 1,177 1,049 
Total revenue$4,326 $4,187 $8,630 $7,852 
The information below shows the reconciliation of reportable segment Adjusted EBITDA to income before income taxes for the three and six months ended June 30, 2026 and 2025:
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June 30,
($ in millions)2026202520262025
U.S.$119 $400 $238 $561 
International476 591 1,063 1,109 
Reportable segment Adjusted EBITDA595 991 1,301 1,670 
Unallocated corporate overhead 1
(87)(72)(162)(135)
Depreciation and amortization(399)(369)(815)(663)
Share-based compensation expense(68)(72)(117)(129)
Transaction fees and associated costs 2
(10)(19)(31)(20)
Restructuring and integration costs 3
(80)(70)(146)(111)
Legal loss contingencies 4
(95)— (95)— 
Other (expense) income, net7 (74)318 142 
Interest expense, net(162)(110)(318)(195)
(Loss) income before income taxes$(299)$205 $(65)$559 
1.Unallocated corporate overhead includes shared technology, research and development, sales and marketing, and general and administrative expenses that are not allocated to specific segments.
2.During the three and six months ended June 30, 2026, transaction costs of $10 million and $31 million, respectively, primarily relate to the Group’s contribution to a super political action committee. During the three and six months ended June 30, 2025, transaction costs of $19 million and $20 million, respectively, relate to the Snai and NSX acquisitions.
3.During the three and six months ended June 30, 2026, costs of $80 million and $146 million, respectively (three and six months ended June 30, 2025: $70 million and $111 million, respectively) primarily relate to various restructuring, acquisition integration and other strategic initiatives to drive synergies. The programs are expected to run until 2027. These actions include efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. It also includes business process re-engineering cost, planning and design of target operating models for the Group's enabling functions and discovery and planning related to the Group's anticipated migration to a new enterprise resource planning system. The costs primarily include severance expenses, advisory fees and temporary staffing costs.
4.During the three and six months ended June 30, 2026, costs of $95 million (three and six months ended June 30, 2025: Nil) include accruals related to historical U.S. sales and use tax that the Group is the process of remediating amounting to $33 million and $62 million in connection with the Indian GST matter.
The following table includes the significant segment expense categories that are regularly provided to the CODM and included in segment profit and loss for the three and six months ended June 30, 2026 and 2025:
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June 30,
($ in millions)2026202520262025
U.S.
Revenue$1,683 $1,791 $3,446 $3,457 
Cost of sales1
(995)(968)(2,038)(1,924)
Technology, research and development expenses2
(109)(86)(198)(168)
Sales and marketing expenses3
(353)(219)(732)(593)
General and administrative expenses4
(107)(118)(240)(211)
Total U.S. Adjusted EBITDA119 400 238 561 
International
Revenue2,643 2,396 5,184 4,395 
Cost of sales1
(1,371)(1,104)(2,615)(1,984)
Technology, research and development expenses2
(128)(107)(248)(202)
Sales and marketing expenses3
(446)(376)(822)(685)
General and administrative expenses4
(222)(218)(436)(415)
Total International Adjusted EBITDA$476 $591 $1,063 $1,109 
1. Reportable segment cost of sales excludes amortization of certain capitalized development costs, share-based compensation of revenue-associated personnel and restructuring and integration cost directly associated with revenue-generating activities.
2. Reportable segment technology, research and development expenses excludes share-based compensation for technology developers and product management employees, depreciation and amortization related to computer equipment and software not directly associated with revenue earning activities and restructuring and integration costs.
3. Reportable segment sales and marketing expenses exclude amortization of trademarks and customer relations, share-based compensation expenses of sales and marketing personnel and restructuring and integration costs.
4. Reportable segment general and administrative expenses exclude share-based compensation for executive management, finance administration, legal and compliance, and human resources, depreciation and amortization, transaction fees and associated costs and restructuring and integration costs.
The following table shows depreciation and amortization (excluding amortization of acquired intangibles), and share-based compensation expenses (excluding share-based compensation for the Group’s executive management, finance, legal and compliance, centralized operations, technology and human resources functions) by reportable segment that are regularly provided to the CODM for review for the three and six months ended June 30, 2026 and 2025:
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June 30,
($ in millions)2026202520262025
U.S.
Depreciation and amortization excluding amortization of acquired intangibles$31 $30 $67 $59 
Share-based compensation expense32 33 60 61 
Total U.S.63 63 127 120 
International
Depreciation and amortization excluding amortization of acquired intangibles140 118 292 214 
Share-based compensation expense20 24 29 42 
Total International$160 $142 $321 $256