Gentoo Media reported €24.8 million in revenue for Q1 2025, marking an 11% decrease from €28.0 million in Q1 2024. This led to a net loss of €2.7 million, a significant downturn from a €9.7 million profit in Q1 2024.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items fell to €8.2 million, down from €13.5 million the previous year, reducing the EBITDA margin from 48% to 33%.
The sharp drop came as Brazil regulated online sports betting and casinos, which had a huge impact on Gentoo’s presence in the country. CEO Jonas Warrer noted, “In some areas, we lost 90% of the player base.”
Under the new regulations, customers had to reactivate betting accounts, which led to the players no longer generating income for Gentoo. In response to the decline, the company has reduced staff and its portfolio of websites. The global staff of 500 has been reduced by 10% while the company has narrowed its active website group to 70 high-potential domains.
Commenting on the staff reductions, a spokesperson said, “We are deeply grateful to the colleagues who have moved on. Their contributions have helped shape Gentoo Media, and we’ve done our best to support them during this time.”
Gentoo Media Suffers Q1 Losses Following Brazil Gambling RegulationTough quarter for gambling affiliates
In addition to the losses suffered by Gentoo, gambling affiliate and media group Raketech also reported net losses, despite turning a profit last year. The declines point to the challenges of keeping up with constant changes in regulations and SEO practices. Raketech has similarly cut costs while also moving away from an SEO-heavy strategy.
Gentoo Media Suffers Q1 Losses Following Brazil Gambling Regulation“Coupled with reliance on branded search patterns that were increasingly chaotic and less predictable, the surface area and revenue opportunities for search-driven affiliates were reduced by as much as 60 or 70% overall.”
The overall gambling affiliate industry remains a high-growth industry. It is currently valued at $17 billion and is projected to grow to over $27 billion by 2027. This is in line with growth in the global online gambling industry, which is projected to grow from $103 billion in 2025 to $169.22 billion by 2030.
Much of the growth is fueled by online casinos, which account for $85 billion of the market.
Change in direction for Gentoo
Gentoo Media Suffers Q1 Losses Following Brazil Gambling Regulation Gentoo Media Suffers Q1 Losses Following Brazil Gambling Regulation“The strategic shifts taken were deliberate and essential. We expect improved margins and growth to resume in the second half of 2025. Our vision is to lead with execution, innovation, and sustainable growth.”
Sweepstakes casinos an opportunity
As Brazil implemented regulations, many US states have also been proposing band on sweepstakes casinos. Warrer believes the unregulated gaming sites still offer an opportunity for the company, however.
Gentoo Media Suffers Q1 Losses Following Brazil Gambling RegulationHowever, he added “we are not going to go all-in and become a sweepstakes affiliate.”
Gentoo Media Suffers Q1 Losses Following Brazil Gambling Regulation
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
