Brightstar lowers 2026 forecast: pressure on lottery spending

Brightstar Lottery has lowered its full-year 2026 forecast. CEO Vince Sadusky pointed to rising pressure on consumer spending and a more selective approach to lottery games. Sadusky said consumers have become more deliberate in their spending, and that activity among low-income households has stood out in particular.

In the three-month period ending September 30, the company's total revenue fell 4% to $607 million. Adjusted EBITDA fell 2% to $289 million, and net profit declined to $22 million. Service revenue fell 9% to $547 million. Revenue from instant tickets and draw games, the main revenue line, fell 2% to $500 million. Revenue from multi-state high-jackpot games in the US fell 30% to $25 million.

Sadusky said the changes to Mega Millions have not produced the expected result. He said participation stays limited when jackpots are low, and returns to previous levels only when prizes approach $1 billion. Sadusky also said lottery sales have held up better overall than other consumer-facing sectors, but that it is hard to draw a sound conclusion about the long-term trend from a single quarter.

Product sales rose 137% to $60 million. Growth in hardware, software and instant ticket sales contributed to this increase. By geography, revenue from the US and Canada was $301 million, down 1% from the same quarter last year. Revenue from Italy fell 19% to $208 million, while revenue from other countries rose 42% to $98 million. The $99 million upfront license fee amortization deducted from service revenue was partly due to efforts to expand in the Italian market.