Playtech will battle through UK headwinds in the second half of 2026, but remains optimistic that its widely diversified portfolio can still accomplish sustainable growth.
In a H1 trading update, ending 30 June 2026, the iGaming supplier stated its results are ‘significantly ahead of market expectations’ thanks to a great performance in the US and continued strength in Mexico, Colombia and certain European countries.
A H1 2026 adjusted EBITDA of more than €155m is now expected, benefiting from being first to market with a past motor racing (PMR) offering with Hard Rock Digital.
However, headwinds are to come in H2 2026, including the impact from the UK remote gaming duty (RGD), revenue normalisation from its PMR partnership with Hard Rock Digital in the US, and the cost of investment in Brazil.
Strong H1
Its adjusted EBITDA includes the operating loss of HAPPYBET, its income share from associates (notably 30.8% shareholding in Caliente Interactive in Mexico), and dividends received from equity investments (primarily Hard Rock Digital).
Mor Weizer, Chief Executive Officer of Playtech, stated: “We achieved an excellent performance in the first half of 2026, reflecting continued momentum in regulated markets, notably the Americas and certain European markets.
“Performance in the US, driven by our partnership with Hard Rock Digital, has been exceptionally strong, and we are delighted to see returns on our investments over recent years accelerate and contribute significantly to profitability and cash flow.”
UK headwinds
However, challenges await Playtech in the second half of 2026, with several headwinds expected to push adjusted EBITDA lower than H1.
Revenue from its PMR partnership with Hard Rock is expected to normalise to a lower, but more sustainable level, in the second half of the year and into 2027.
H2 2026 will also take on the full impact of RGD changes that occurred in the UK iGaming market in April, in addition to investment in a significant partnership for Brazil ahead of an expected signing and launch. The Brazil deal is expected to contribute to growth in 2027.
Playtech expects adjusted EBITDA for the year-end, 31 December 2026, to be at least €270m, higher than previous analysts’ estimates for the year of between €205m-€225m and the mean €219m consensus across seven analysts.
Weizer added: “Playtech continues to further establish itself in regulated and regulating markets going into the second half of the year, and we are pleased with the progress towards our medium-term targets.”
Playtech is scheduled to publish its full H1 results on 10 September 2026.
Legal situation
Playtech also has its ongoing legal situation with Evolution.
Previously, the company said it was prepared to ‘defend itself vigorously’ against Evolution’s US defamation lawsuit, which alleged it orchestrated a defamatory smear campaign against the firm, calling the accusation ‘baseless and without merit’.
The statement from Playtech came in response to Evolution citing the supplier as a defendant alongside Calcagni & Kanefsky LLP and Black Cube, in addition to adding Juda Engelmayer and others as defendants.