Regulatory challenges in Brazil and Colombia weigh on performance, but Playtech remains optimistic about growth.
Playtech remains bullish on Latin America’s long-term potential, even as recent regulatory developments have created short-term turbulence. In its latest trading update, the company reported regional headwinds during the first four months of 2025—news that triggered a 2.55% dip in its share price to 343.50 pence on Wednesday morning.
The update, issued ahead of Playtech’s annual general meeting, also outlined progress on the sale of Happybet, its final B2C asset, and reaffirmed its shift to a B2B-focused strategy following the Snaitech divestiture.
Brazil and Colombia Regulations Impact LatAm Growth
Playtech flagged two major challenges in Latin America: Brazil’s transition to a regulated market and Colombia’s introduction of a temporary VAT charge. The latter, implemented in February, has already driven a 30% drop in online gross gaming revenue (GGR) in Colombia.
Despite these obstacles, Playtech expressed confidence in the region’s long-term potential. The company remains committed to expanding in Brazil and Colombia, highlighting these markets as key growth opportunities once regulatory frameworks stabilise.
US Operations Show Strong Momentum
In contrast to Latin America, Playtech reported strong growth in the US across its live dealer, casino, and platform segments. The company credited recent launches with major operators—Bet365, Rush Street Interactive, and Hard Rock Digital—for driving demand, particularly in the live casino space.
Caliplay Joint Venture Moves Forward After Agreement
Playtech also highlighted positive developments in its long-running joint venture with Caliente. A new strategic agreement for the Caliplay partnership took effect on 31 March, granting Playtech dividend rights as a 30.8% equity holder.
Although Playtech relinquished its claim to additional B2B service fees—previously a point of contention—it confirmed that the agreement ended the dispute. The two sides had clashed over whether Caliplay retained the right to redeem those fees, which Playtech claimed amounted to €34.4 million for the first half of 2022 alone. Caliplay has since resumed paying standard software and services fees, in line with the new terms.
Playtech Shifts to B2B Model After Snaitech Sale
The update also marked Playtech’s transition into a nearly pure B2B enterprise. On 30 April, the company completed its €2.30 billion ($2.60 billion) sale of Snaitech to Flutter Entertainment. Playtech pledged to return most of the proceeds to shareholders, amounting to €5.73 per share.
CEO Mor Weizer said the sale, combined with the strong start to 2025, lays a solid foundation for future growth.
“Our core B2B business has delivered a solid performance in the first four months of the year, with a standout performance in the US,” Weizer noted.
“Given the strategic and operational progress being made across the business, we remain confident in Playtech’s ability to execute on the exciting growth opportunities over the medium term.”
Happybet Sale Nears Completion
Finally, Playtech confirmed continued progress on divesting Happybet, its remaining B2C business. Carved out of Snaitech ahead of the Flutter deal, Happybet operates both online and retail betting services in Germany and Austria.
While Playtech has not set a public timeline, it indicated that an update on the sale will follow in due course.
