Playtech’s CEO Mor Weizer announced on Thursday that the company is poised to launch its operations in Brazil early next year, despite ongoing political uncertainties affecting its partnership with Caixa, the state-owned bank of Brazil.
In 2025, Playtech formed an alliance with Caixa to establish a platform for its betting operations. Weizer has previously expressed that the Caixa tender represents one of the most significant opportunities for Playtech in the coming years.
However, due to Caixa’s status as a state-owned institution and heightened scrutiny surrounding betting in Brazil, the launch has encountered several delays, despite Caixa already paying a BRL30 million ($5.9 million) licensing fee.
Most recently, in April, Caixa postponed its launch to at least 2027 under pressure from Brazil’s President Luiz Inácio Lula da Silva.
As Brazil prepares for a general election next month, Weizer indicated that the political climate has further delayed Playtech's entry into the regulated market, although he did not explicitly identify Caixa as a client. “I’ll be very, very open and straightforward about it,” Weizer told analysts on Playtech’s post-Q2 earnings call. “There were certain concerns that because it is an election year, and obviously gaming is a political issue, 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 the prospective customer that we are in discussions with to wait until the elections.”
Despite this setback, Weizer remained optimistic, stating, “I will say that the expectations remain the same to enter into an agreement and launch sometime at the beginning of next year.”
CFO and Director Chris McGinnis shared insights on the potential impact of the Brazil opportunity, suggesting it could enhance Playtech’s medium-term growth outlook. He clarified that this opportunity was not specifically included in the company’s guidance set after its full-year results in March last year. “At that point, we sort of knew of the opportunity, but it wasn’t necessarily factored into the guidance,” McGinnis noted. He added that it might be logical to consider Brazil’s impact on revised targets during the upcoming full-year results.
Meanwhile, Playtech has been embroiled in ongoing litigation with Evolution. In 2020, Playtech commissioned the intelligence firm Black Cube to investigate Evolution's operations, leading to allegations concerning Evolution supplying games in restricted markets. Evolution responded by suing Black Cube and attempting to hold Playtech accountable for defamation in connection with the case. Recently, Spectrum Gaming released a report commissioned by Evolution, which corroborates several claims from Black Cube’s investigation.
When asked about the ongoing legal issues, Weizer avoided further comment, noting, “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, and we can’t simply take questions on the legal situation.”
In its latest financial report, Playtech noted a remarkable 10% increase in revenue year-on-year, hitting €425.1 million for the first half of the year, thanks to exceptional growth in its B2B sector in North America. Revenue from the U.S. and Canada surged 161% year-on-year to €56.9 million, while adjusted EBITDA rose 77% to €162.5 million, with B2B contributing €128.1 million to that figure.
