Playtech has initiated an operational review of its Sun Bingo white label business, with CFO Chris McGinnis telling analysts the operation is unlikely to remain profitable once the UK’s elevated 40% remote gaming duty takes effect in April.

Speaking during the supplier’s full-year 2025 earnings call, McGinnis acknowledged the challenging position but suggested Sun Bingo retains long-term potential within Playtech’s portfolio. The business, he noted, exhibits more B2B characteristics than typical consumer-facing operations, despite serving customers directly.

Playtech assumed the Sun Bingo contract from Gamesys in 2015. Since then, the operation has faced mounting pressure from enhanced UK regulatory requirements, which contributed to a 17% revenue decline and reduced adjusted EBITDA in the second quarter of 2025.

The supplier’s B2C division saw revenue fall 20% year-on-year to €78.5 million in 2025. Worth knowing: this was primarily driven by the disposal of its German Happybet business rather than operational underperformance.

Brazil Emerges as Strategic Priority

While UK operations face headwinds, Playtech executives struck a decidedly more optimistic tone when discussing Latin American opportunities, particularly in Brazil. CEO Mor Weizer expressed considerable enthusiasm about a potential partnership with Caixa Economica Federal, Brazil’s state-owned banking giant.

Playtech secured the tender to provide its platform to Caixa in 2025, though the bank’s planned betting launch was postponed in November following political resistance. Senator Damaras Alves delivered a pointed critique of the initiative in October, characterising it as contradictory and irresponsible.

The project remains indefinitely paused. But with Brazil heading to general elections in October, the political landscape could shift.

Weizer described the Caixa contract as potentially one of the most significant opportunities for Playtech in the coming years, noting the bank’s reach across 140 million registered customers in a market of 150 million adults.

The Brazilian market will require additional capital investment in the year ahead, the executives confirmed. Playtech also expects the 2026 World Cup, co-hosted in Mexico, to drive further growth in the Americas through its revised Caliente partnership.

Americas Performance Offsets European Challenges

The Americas region delivered strong results for Playtech during 2025, with US revenue approximately doubling year-on-year. The renegotiated Caliente deal in Mexico contributed significantly to regional performance.

Group-wide, Playtech reported revenue of €763.6 million, down 10% on the previous year, while EBITDA declined 9% to €197 million. B2B revenue fell 9% to €688.3 million, with adjusted EBITDA dropping 36% to €141.4 million. This was in line with expectations following the revised Caliente Interactive agreement.

Despite tax increases across multiple markets, the supplier expects full-year 2026 performance to exceed current consensus forecasts, suggesting confidence in its strategic repositioning towards higher-growth territories.