Playtech's CEO Mor Weizer announced on Thursday that the gaming technology provider aims to launch its operations in Brazil early next year, despite ongoing political challenges that are affecting its deal with Caixa, the state-owned bank.
In 2025, Playtech secured a partnership to supply a platform for Caixa’s betting operations, which Weizer has described as potentially one of the most significant opportunities for the company in the near future. However, the relationship has faced hurdles as Caixa, due to its status as a state-owned entity and the heightened scrutiny surrounding gambling in Brazil, has repeatedly delayed its launch. The bank has already paid a license fee of BRL30 million ($5.9 million), yet political pressures have caused postponements.
Earlier this year, Caixa was forced to delay its launch until at least 2027 under the direction of Brazilian President Luiz Inácio Lula da Silva. As Brazil prepares for a general election next month, Weizer noted that the election cycle has contributed to the delays for Playtech as well. While he did not directly confirm Caixa as their client, he indicated that election-year sensitivities surrounding gambling are influencing the situation.
“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,” Weizer explained during Playtech’s post-Q2 earnings call. He 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.”
Regarding the Brazil venture, Playtech's CFO Chris McGinnis added that the opportunity was not fully accounted for in their medium-term guidance established after the previous year's full results. He acknowledged the ambitious targets set and indicated that as they reassess their numbers during the upcoming full-year results, Brazil’s potential could contribute positively to their forecasts.
Playtech's legal challenges with Evolution are also ongoing. The company had previously hired Black Cube to probe Evolution’s activities, which resulted in allegations that Evolution supplied games to prohibited markets. Evolution responded by suing Black Cube and seeking to hold Playtech accountable for defamation regarding the situation. This week, Spectrum Gaming released a report commissioned by Evolution, which Playtech noted corroborates several claims from Black Cube’s investigation. When pressed for comments on the litigation, Weizer refrained from providing details, citing legal privileges and confidentiality, stating, “I have a lot to say, but I can’t.”
In terms of financial performance, Playtech reported a 10% increase in revenue year-on-year to €425.1 million for the first half of the year, attributing this growth to what they termed "exceptional growth" in their B2B sector in North America. Revenue from the U.S. and Canada rose dramatically, reaching €56.9 million, a 161% increase from the previous year. The adjusted EBITDA also saw a significant rise of 77%, totaling €162.5 million, with the B2B segment contributing €128.1 million of that figure.
