Playtech Strengthens Americas Position Amid New Tax Pressures

(AsiaGameHub) –   Playtech identifies Mexico and other North American markets as the primary drivers of growth for its FTSE250 midcap portfolio.

In a corporate announcement preceding its Annual General Meeting, Playtech highlighted the ongoing “stronger-than-expected performance in the Americas.”

While overall group figures were not disclosed, the company’s leadership noted that the momentum from FY2025 has been sustained.

Playtech’s Americas division generated €209.9 million in regional revenue, driven by a 61% increase in the US and Canada to €48 million (up from €29.8 million in FY2024), and an 8% underlying growth in Latin America, excluding the updated Caliente agreement. US gaming contracts almost doubled compared to the previous year.

Consequently, management commends a new growth trajectory in the Americas, spearheaded by its B2B client base, which includes DraftKings (casino and live gaming), bet365 (live gaming in New Jersey and Pennsylvania), Hard Rock Digital (live gaming in Michigan and New Jersey), and FanDuel (live gaming in New Jersey, Pennsylvania, and Michigan).

The prospects for the Americas are further strengthened by the revised Caliente joint venture agreement, which became effective in March 2025.

This agreement transitions Playtech’s services in Mexico from B2B service fees to equity participation, expected to contribute €54.5 million in associate income and €45.7 million in dividends under the 2025 contract.

Shareholders were notified that “Playtech has delivered an outstanding trading performance for the initial four months of 2026, propelled by sustained strength in the US, Mexico, and specific European markets, alongside robust performance in Live, as the returns on the Company’s recent investments have accelerated.”

Mor Weizer, Playtech’s Chief Executive Officer, stated: “We have experienced an excellent start to 2026, with robust trading during the first four months of the year, indicative of sustained momentum in regulated markets, particularly in the Americas and certain European regions.”

Focus on Mexico

The Playtech partnership with Caliente Interactive in Mexico continues to demonstrate strong performance, with the forthcoming FIFA World Cup offering a substantial opportunity to further solidify Caliente’s market leadership.

Further details regarding Playtech’s susceptibility to new gambling tax regulations in crucial markets will be provided in interim accounts. These include the UK’s Remote Gaming Duty rising to 40% and Mexico’s introduction of a new 50% IEPS gambling tax on operator income, enacted as part of President Claudia Sheinbaum’s Fiscal Budget 2026 reforms.

Weizer concluded by saying: “Despite persistent industry challenges, Playtech’s robust expansion in regulated markets, diversified strategic placement, highly scalable technology, and strong partner relationships collectively position the Group favorably to capitalize on the substantial market opportunities ahead.”

Departure of NED Penrose

Prior to its AGM, Playtech disclosed that Independent Director Ian Penrose would be resigning from the Board.

Penrose, previously CEO of Sportech, had served as an Independent Non-Executive Director since 2018, contributing to the leadership’s North American goals and the company’s strategic shift back to a B2B focus after divesting SNAI Italia.

John Gleasure, Non-Executive Chairman, stated: “On behalf of the Board, I wish to extend our gratitude to Ian for his invaluable contributions during a period of substantial shareholder value creation and strategic transformation since his appointment in 2018.

“Ian has provided extensive global industry experience to Playtech and has consistently demonstrated unwavering commitment and dedication throughout his nearly nine years of service to the company. We extend our best wishes for his future undertakings.”