Playtech believes in the strength of its operations for 2027 despite roadblocks arising in Brazil and other global iGaming markets.
A trajectory for the year ahead was provided alongside the iGaming supplier stating that it was trading ahead of expectations in its third quarter trading update thanks to a strong performance across the Americas.
Playtech’s development of its past motor racing (PMR) product with Hard Rock Digital was spotlighted since it has ‘continued to perform strongly’. However, in the new year, an increasing number of competitive third-party PMR suppliers is expected to have ‘a more material impact’.
Recent political and regulatory developments in the Brazilian market have caused issues, as Playtech ‘expects to be able to absorb the three-month impact on adjusted EBITDA in 2026, with a more significant impact expected in 2027 should the existing market shutdown not be lifted’.
Earlier this month, all legal challenges against President Lula da Silva’s betting ban in lower courts were suspended by the Brazilian Supreme Court until it makes a decision.
Playtech also noted that it continues to absorb the full impact of the UK’s remote gaming duty increase, ‘with a full year of impact to come in 2027 alongside increased taxation across other European markets’.
Prior to the update, current analyst estimates for Playtech’s 2026 adjusted EBITDA ranged from €271m-€285m, with a mean consensus of €279m. Consensus for its 2027 adjusted EBITDA is €266m.
Excellent performance in 2026
“We remain confident in the underlying strength of the business and the significant opportunities ahead.”
Mor Weizer, Chief Executive Officer of Playtech
Mor Weizer, Chief Executive Officer of Playtech, stated: “We have continued to deliver an excellent performance in 2026 to date, reflecting sustained momentum in regulated markets, notably the Americas.
“Performance in the US, driven by our partnership with Hard Rock Digital, has remained strong, contributing significantly to profitability and cash flow, while Mexico and Colombia have benefitted from tailwinds after the Men’s FIFA World Cup.
“Looking to 2027, we expect performance to reflect growing competition from third-party PMR suppliers in the US, political and regulatory developments in Brazil and the first full-year impact of increased Remote Gaming Duty in the UK.
“That said, we remain confident in the underlying strength of the business and the significant opportunities ahead as we continue to expand our presence in regulated and regulating markets and work towards the top-end of our medium-term targets.”
Evolution dispute
No further update about Playtech’s long-running dispute with Evolution was provided in the supplier’s release.
Evolution is currently locked in a defamation lawsuit in New Jersey against the law firm Calcagni & Kanefsky LLP and the investigative firm Black Cube, which was revealed to have been commissioned by a Playtech subsidiary to investigate Evolution’s practices.
Recently, Evolution demanded that Playtech be added to the case ‘as soon as practical’ in response to the Spectrum Report, and a subsequent statement by Playtech claiming that it validated Playtech’s assertions surrounding Evolution’s activity in prohibited locations.