Playtech upbeat on Latin America opportunities despite ‘headwinds’
Market regulation in Brazil and new VAT charges in Colombia have impacted Playtech’s Latin American performance, although the company remains optimistic about the region’s potential.
Despite facing challenges in the first four months of 2025, Playtech maintains a positive outlook on growth opportunities in Latin America. The organization is also advancing its strategy regarding the sale of Happybet, its last remaining B2C asset.
However, following the release of its trading update before the annual general meeting, shares fell by 2.55%, trading at 343.50 pence per share in London. It’s important to note that Playtech only provides detailed financial data in its half-year and full-year reports.
Brazil Regulation and Colombia VAT: Impacts on Playtech
Playtech’s latest update emphasized the obstacles it faces in Latin America. Most notably, the transition to a regulated market in Brazil, alongside the introduction of a temporary VAT charge in Colombia, has reportedly led to a staggering 30% decline in online Gross Gaming Revenue (GGR) in Colombia since its implementation in February. Nevertheless, Playtech remains optimistic about future opportunities in these markets.
In contrast, Playtech reported notable revenue growth across its live, casino, and platform segments in the U.S. Strategic partnerships formed in 2024 with major operators such as Bet365, Rush Street Interactive, and Hard Rock Digital have significantly contributed to this expansion. The demand for live dealer solutions in the U.S. has reached unprecedented levels, further bolstering Playtech’s market position.
Positive Developments in Caliplay Joint Venture
In addition, Playtech highlighted the growth stemming from its joint venture with Caliente, known as Caliplay. As of March 31, Playtech has entered a revised strategic agreement, securing dividends as a 30.8% equity stakeholder. However, the new terms stipulate that Playtech is no longer entitled to additional B2B service fees, which had been a contentious issue in prior negotiations with Caliente.
Initially, Playtech contended it was owed €34.4 million in unpaid services and licensing fees for the six-month period ending June 30, 2022, a figure that continued to grow amidst the dispute. Fortunately, Caliplay has resumed its payments for software and services, albeit under new terms that exclude these fees.
Playtech’s New Direction Following Snaitech Sale
During this four-month period, Playtech has reoriented itself as a purely B2B entity after completing the divestiture of Snaitech to Flutter Entertainment on April 30. This significant transaction is valued at €2.30 billion ($2.60 billion) and is expected to benefit shareholders, with Playtech committing to distribute €5.73 per share.
With this strategic pivot toward a B2B focus, Playtech anticipates considerable opportunities for growth. CEO Mor Weizer believes that the company’s renewed focus and recent performance in the U.S. positions Playtech for sustained advancement. “Our core B2B business has delivered solid results in the early months of the year, with particularly strong performance in the U.S.,” said Weizer. “We remain confident in our ability to capitalize on exciting growth opportunities in the medium term.”
Update on Happybet: Playtech’s Final B2C Asset
Lastly, Playtech provided an update regarding the sale of its remaining B2C asset, Happybet, which operates online and in physical betting shops across Germany and Austria. Reports from late 2024 indicated that Playtech was actively preparing for this sale as part of its strategic restructuring following the separation from Snaitech.
Playtech affirmed that it continues to progress towards the sale of Happybet and will provide additional information in due course.
