Playtech's CEO Mor Weizer stated on Thursday that the gaming technology provider aims to launch operations in Brazil early next year, even as political uncertainties surrounding its partnership with Caixa, the state-owned bank, loom large.
In 2025, Playtech established a partnership to supply a platform for Caixa's betting operations. Weizer previously indicated that the Caixa tender represented a "significant opportunity for Playtech in the coming years."
However, due to Caixa’s public status and the ongoing scrutiny of betting activities in Brazil, political pressures have mounted, causing delays in its market entry. Despite already paying the BRL30 million ($5.9 million) licensing fee, Caixa has postponed its launch several times.
In April, under pressure from Brazilian President Luiz Inácio Lula da Silva, Caixa announced that its launch would be pushed back to 2027 at the earliest. Weizer remarked that the upcoming general elections in Brazil contributed to this delay, noting that he could not specifically refer to Caixa as the client affected.
During Playtech's Q2 earnings call, Weizer said, “I’ll be very, very open and straightforward about it. There were certain concerns that because it is an election year, gaming has become a political issue with references from politicians regarding gambling.” He added that they were encouraged to collaborate with the government and potential clients to postpone initiatives until after the elections.
Despite these setbacks, Weizer expressed optimism, stating, “Expectations remain the same to enter into an agreement and launch sometime at the beginning of next year.”
Regarding the Brazilian venture, Playtech's CFO Chris McGinnis shared insights during the analysts’ call, indicating that this potential deal could positively impact the company's medium-term outlook. He mentioned that the Brazil opportunity had not been explicitly included in Playtech's medium-term guidance set after their complete annual results last March.
"When we set the guidance, we were aware of the opportunity, but it wasn’t specifically factored in as a contributor,” McGinnis explained. He suggested that the Brazil opportunity might be more directly integrated into future targets during the company’s full-year results review.
In another ongoing issue, Playtech is embroiled in litigation with Evolution, which has been a point of contention for some time. Playtech had tasked intelligence firm Black Cube to investigate Evolution’s operations in 2020, leading to allegations that Evolution had supplied games to banned and sanctioned markets. Evolution responded by suing Black Cube and is holding Playtech liable in a defamation suit.
Weizer declined to provide details on the litigation, stating, "It's very interesting. But as I'm sure you can understand, we’re not going to answer any questions regarding litigation. We are under legal privilege and confidentiality rules. We have said what we needed to say following the release of the Spectrum report earlier this week."
In terms of financial performance, Playtech reported a 10% year-on-year increase in revenue for the first half of the year, totaling €425.1 million. This growth is attributed to strong advancements in their B2B business within North America, where revenues from the US and Canada surged by 161% year-on-year, amounting to €56.9 million. The company’s adjusted EBITDA also saw a rise of 77%, reaching €162.5 million, with B2B contributing €128.1 million of that total.
