Playtech raised its full-year earnings outlook after exceeding expectations for the four months up to October 31. Continued growth in the Americas contributed significantly. While this development reflects a strong end to the year, the company may face a harsher operating environment in 2027. Increased competition in the US, uncertainty in Brazil, and higher taxes in Europe may test whether Playtech can maintain its recent earnings momentum.
Playtech Experienced Several Positive Developments
The gambling technology supplier now expects adjusted EBITDA for 2026 to exceed EUR 300 million ($334 million), putting it ahead of the current analyst consensus. This update follows a strong first half. Playtech’s revenue was EUR 425.1 million ($473.3 million) in the first six months, up 10% year-over-year. Adjusted EBITDA grew 77% to EUR 162.5 million ($180.9 million), while adjusted EBITDA margin was 30%.
CEO Mor Weizer said the company had maintained strong momentum in regulated markets, with the Americas contributing significantly to profitability and cash flow. The US market was instrumental, especially through Playtech’s partnership with Hard Rock Digital. Together, the two companies were the first to market with a product based on Past Motor Racing (PMR) results. The deal gave Playtech a significant market edge.
“We have continued to deliver an excellent performance in 2026 to date, reflecting sustained momentum in regulated markets, notably the Americas.”
Mor Weizer, Playtech CEO
The PMR arrangement helped the supplier establish its presence in the first half of 2026, and product revenues remained strong in the second half. However, Playtech believes this gap will narrow. Other third-party PMR suppliers are entering the market and are expected to affect Playtech’s share of customer spending in 2027.
Growing Pressures in Key Markets May Dampen Profits
While favorable conditions in Mexico and South America, such as the World Cup, helped Playtech expand its presence in the region, Brazil presents significant challenges. Recent political and regulatory developments led the country to shut down its regulated gambling market, affecting Playtech’s investments in the country. If Brazil does not reopen its market in the following months, it could significantly affect the supplier’s 2027 plans.
Playtech previously identified Brazil as a strategic market with strong growth potential and doubled down on local expansion, opening a live casino studio in São Paulo. Following the company’s promising first-half results, Weizer noted that he was looking to expand Playtech’s presence in Brazil by early 2027. However, these plans are now less certain considering the country’s turbulent regulatory climate.
“We remain confident in the underlying strength of the business and the significant opportunities ahead.”
Mor Weizer, Playtech CEO
Tax increases may also pressure the business. The UK’s higher Remote Gaming Duty remains an issue, as Playtech expects this increase, combined with increased taxes in other European markets, to affect its 2027 financials. However, Weizer remained confident in the company’s underlying strength despite next year’s expected pressures. He noted that Playtech expects to keep growing in regulated jurisdictions.