Playtech's CEO Mor Weizer announced on Thursday that the gaming supplier anticipates launching its operations in Brazil early next year, despite ongoing political challenges that are affecting its collaboration with Caixa, the country’s state-owned bank.
In 2025, Playtech entered into a partnership to deliver a platform for Caixa's betting operations. Weizer previously identified the Caixa tender as potentially one of Playtech’s most significant prospects in the near future. However, as a state-owned entity, Caixa is facing intense political scrutiny affecting its timeline, with multiple delays in its market launch despite already paying the BRL30 million (approximately $5.9 million) licensing fee.
In April, under directives from President Luiz Inácio Lula da Silva, Caixa’s anticipated launch was postponed until at least 2027. As Brazil prepares for a general election next month, Weizer noted that this political context has influenced Playtech’s launch plans, although he did not confirm if Caixa was the client in question.
Weizer stated during Playtech’s post-Q2 earnings call, "I’ll be very, very open and straightforward about it. There were certain concerns that because it is an election year, and obviously, gaming is a political issue or there were references by politicians throughout the elections about gambling. Given the sensitivity around that, we were kindly asked to collaborate with the government [and] with the prospective customer that we are in discussions with to wait until the elections."
Despite the setbacks, Weizer expressed optimism, asserting, "I will say that the expectations remain the same to enter into an agreement and launch sometime at the beginning of next year."
Regarding the Brazil opportunity, CFO Chris McGinnis elaborated that this deal could enhance Playtech’s medium-term outlook. He noted that while the Brazil opportunity was recognized, it was not integrated into Playtech’s medium-term guidance issued after its full-year results in March last year.
“When we set the guidance, we had ambitious targets that did not specifically account for the Brazil opportunity. We’ll reassess our targets during the upcoming full-year results, which will be the appropriate time to consider Brazil in any adjustments we may make," McGinnis added. This potential opportunity could positively influence the company’s performance and market expectations in the years to come.
On a related note, Playtech remains tight-lipped regarding its ongoing litigation with Evolution. In 2020, Playtech engaged intelligence firm Black Cube to investigate Evolution's activities, resulting in allegations that Evolution supplied games to banned markets. Subsequently, Evolution has filed a lawsuit against Black Cube and is seeking to hold Playtech accountable for defamation.
Weizer refrained from discussing the matter in depth, stating, "It’s very interesting. But as I’m sure you can understand, we are not going to answer any questions on litigation. We are under legal privilege and confidentiality rules… I have a lot to say, but I can’t."
In its financial performance, Playtech reported a 10% increase in revenue year-on-year for the first half of the year, totaling €425.1 million, bolstered by what the company termed "exceptional growth" in its B2B sector in North America. Revenue from the U.S. and Canada rose 161% from the previous year, reaching €56.9 million. The company also saw a 77% rise in adjusted EBITDA, which reached €162.5 million, with B2B contributing €128.1 million to that figure.
