Playtech Targets Early 2027 Launch In Brazil

Playtech is targeting the beginning of 2027 to launch a new agreement in Brazil after delaying progress due to political sensitivities surrounding gambling during the country's election year.

CEO Mor Weizer outlined the timetable following the publication of Playtech's first-half results, explaining that discussions with a prospective customer had been progressing before the company was asked to wait until after the elections.

Despite the delay, Playtech remains confident that an agreement will be reached. Brazil is already an important market for the supplier, which has established a presence in the country through its live casino studio in São Paulo.

Brazil Opportunity Delayed Until After Elections

Weizer said political discussion surrounding gambling during the election period had contributed to the decision to delay the proposed launch. Playtech had subsequently been asked to cooperate with the government and its prospective customer by postponing further progress.

“There were some concerns because it’s an election year and obviously gaming is a political issue, or there were references by politicians throughout the elections about gambling,” Weizer said.

“Given the sensitivity around that, we have been asked to collaborate with the government and the prospective customer that we are in discussions with, to wait until the elections. However, I will say that the expectations remain the same to enter into an agreement and launch sometime by the beginning of, or at the beginning of, next year.”

The potential Brazilian agreement was not specifically included in the medium-term growth targets previously outlined by Playtech, meaning a successful launch could provide additional upside to its existing expectations.

Chief Financial Officer Chris McGinnis said:

“We sort of knew of the opportunity, but it wasn’t specifically factored into the guidance necessarily…I think the Brazil opportunity should only enhance those.

“We’ll revisit the targets at the full-year results. I think that would probably be the logical time to more explicitly factor Brazil into any revised targets.”

Playtech Sees Opportunity From Industry Consolidation

Weizer also addressed continued consolidation across the global betting and gaming industry, which he believes could create longer-term opportunities for Playtech's B2B operations.

While mergers can have different short-term effects depending on the operators involved, Weizer said larger combined businesses generally have greater resources available for marketing and international expansion.

He cited 888's acquisition of William Hill as an example. Playtech already had a significant supplier relationship with William Hill but conducted relatively little business with 888 before the combination, creating an opportunity to increase its relationship with the enlarged group.

“If you look back at all of our accounts, many of which have gone through consolidation process, they are far bigger today than they what they were before,” Weizer said.

Weizer Declines Further Comment On Evolution Dispute

Playtech management was also questioned about its ongoing dispute with Evolution following the publication of a Spectrum Gaming Group report into allegations originally made against the live casino supplier.

The report raised concerns surrounding the availability of Evolution games in prohibited markets and aspects of its compliance practices, although it was unable to confirm several other allegations.

Weizer said he had “lots to say” about the matter but declined to discuss the ongoing litigation due to legal privilege and confidentiality requirements.

“We said what we needed to say following the Spectrum report being released earlier this week, so that’s all I can say at this point in time,” he said.