Playtech expecting 2027 Brazil launch amid political uncertainty

Playtech CEO Mor Weizer has confirmed the supplier expects to launch in Brazil in early 2027, after political uncertainty and upcoming elections delayed its entry into the newly regulated market. Speaking on the company’s post-Q2 earnings call on Thursday, Weizer said Playtech was asked to postpone its launch until after Brazil’s general election next month.

The delay affects Playtech’s partnership with Caixa, Brazil’s state-owned bank, which the supplier agreed to provide a platform for in 2025. Weizer had previously described the Caixa tender as “one of the most significant opportunities for Playtech for the coming years.”

“There were certain concerns that because it is an election year, and obviously, gaming is a political issue or there were references by politicians throughout the elections about gambling,” Weizer told analysts. “Given the sensitivity around that, 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.”

Political pressure impacts state-owned bank’s timeline

Caixa has faced repeated launch postponements due to its status as a state-owned entity and ongoing scrutiny around betting in Brazil. Despite paying the BRL30 million ($5.9 million) licence fee, the bank came under pressure from President Luiz Inacio Lula da Silva, leading to an April announcement that its launch would be postponed until 2027 at the earliest.

Despite the delays, Weizer remained optimistic about the timeline. “I will say that the expectations remain the same to enter into an agreement and launch sometime at the beginning of next year,” he stated.

Brazil opportunity not factored into current guidance

Playtech CFO and Director Chris McGinnis told analysts the Brazil deal could provide an additional boost to the company’s medium-term outlook, noting it was not explicitly built into guidance set after full-year results in March 2025.

“At that point, we sort of knew of the opportunity, but it wasn’t specifically factored into the guidance necessarily,” McGinnis explained. “Where we’ll revisit the targets at the full-year results, I think that will probably be the logical time to more explicitly factor Brazil into any revised targets we might potentially issue at that point in time.”

McGinnis added that the Brazil opportunity “should only enhance how the business is currently doing and frankly, enhance probably what the current market expectations are for the group in the years ahead.”

Strong H1 results driven by Americas growth

The Brazil update came as Playtech reported revenue increased 10% year-on-year in H1 to €425.1 million, powered by what the company described as “exceptional growth” for its B2B business in North America. Revenue from the US and Canada surged 161% year-on-year to €56.9 million.

The company’s adjusted EBITDA rose 77% to €162.5 million, with B2B accounting for €128.1 million of that total.

When asked about the ongoing litigation with Evolution, Weizer declined to comment, citing legal privilege and confidentiality rules. “I have a lot to say, but I can’t,” he stated.