Playtech Sees 2026 Profit Above €300 Million, Brazil Ban to Weigh in 2027

Playtech, the gambling software supplier, now forecasts 2026 adjusted EBITDA to exceed €300 million, surpassing analyst expectations of €279 million.

The company reported trading from July through October ahead of projections, with demand in the Americas driving the performance.

Chief Executive Mor Weizer highlighted the strength of the US market, where the company is first to market with a product built on past motor racing results.

Americas Demand and New Rivals

Playtech's first-half revenue materially increased due to its partnership with Hard Rock Digital on the motor racing product.

Revenue held up in the second half, though the company anticipates new US rivals will cut into its market share more significantly in 2027.

Mexico and Colombia also benefited from the men's FIFA World Cup, contributing to the regional growth.

Brazil Betting Ban and Market Impact

Brazil has implemented a ban on fixed-odds sports betting and online casino games, signed into law by President Luiz Inácio Lula da Silva on September 25.

Licensed betting sites went offline on October 6, and banks are no longer allowed to process betting transactions.

The ban follows a previous prohibition on event-contract derivatives in April, which had already impacted prediction-market platforms like Kalshi.

Playtech stated it can absorb the three-month impact of the shutdown in 2026 but expects a more significant hit in 2027 if the measure is not lifted.

UK Tax Hikes and Future Outlook

The UK is raising taxes on online casino games to 40% from April 1, 2026, the first full year of which will be 2027.

A new 25% General Betting Duty on remote betting is also set to take effect in April 2027.

Financial spread bets, which brokers like IG and CMC Markets sell to UK clients, remain at a lower 3% rate.

Analysts expect Playtech's 2027 adjusted EBITDA to be €266 million, reflecting these regulatory and competitive pressures.