Playtech's CEO Mor Weizer announced on Thursday that the company anticipates launching its platform in Brazil in early 2024, despite facing significant political uncertainties affecting its agreement with Brazil's state-owned bank, Caixa. In 2025, Playtech secured a partnership to help facilitate betting operations for Caixa.
Weizer previously described the Caixa project as one of the most promising opportunities for Playtech in the coming years. However, political scrutiny surrounding Caixa and its ties to gambling have led to multiple delays in launching its operations in the market, despite Caixa having already paid the BRL30 million (approximately $5.9 million) license fee.
In April, under the influence of Brazilian President Luiz Inácio Lula da Silva, Caixa announced that its launch would be postponed until 2027 at the earliest. With a general election scheduled for next month, Weizer indicated that this political context has impacted Playtech’s timeline for entering the regulated market, though he did not directly identify Caixa as the involved client.
“I’ll be very, very open and straightforward about it,” Weizer stated during Playtech’s post-Q2 earnings call. He acknowledged concerns stemming from the election year, where gaming has become a political topic with notable references from various politicians regarding gambling.
“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,” he added. Despite these setbacks, Weizer remains optimistic, declaring his expectations for an agreement and launch to remain intact for early next year.
In discussing the Brazil opportunity, Playtech CFO Chris McGinnis noted that while this potential deal could significantly enhance the company’s medium-term outlook, it was not explicitly accounted for in Playtech’s previous projections made after its full-year results in March last year.
“When we set the guidance, we were aware of the opportunity, but it wasn’t specifically factored in,” McGinnis explained. He emphasized that the upcoming full-year results would be a more appropriate time to incorporate Brazil into revised targets, potentially positively affecting the company’s market expectations.
Simultaneously, Playtech finds itself embroiled in a legal battle with Evolution. This ongoing litigation arose after Playtech engaged intelligence firm Black Cube in 2020 to investigate Evolution’s actions, leading to allegations that Evolution operated in banned and sanctioned markets. In response, Evolution has filed suit against Black Cube and Playtech.
Weizer, addressing inquiries about future developments in the litigation, stated, “It’s very interesting. But as I’m sure you can understand, we are not going to answer any questions on litigation.” He reinforced that they would adhere to legal privilege and confidentiality regulations, stating, “I have a lot to say, but I can’t.”
On a more positive note, Playtech reported a 10% increase in revenue year-on-year for the first half of the year, reaching €425.1 million, largely due to what the company described as "exceptional growth" in its B2B segment in North America. Revenue from the United States and Canada alone surged by 161% year-on-year to €56.9 million. Additionally, the company's adjusted EBITDA rose by 77% to €162.5 million, with B2B contributing €128.1 million of that figure.
