Playtech CFO Chris McGinnis has expressed confidence the company will see strong growth in the Latam market moving forward despite a yearly revenue dip reported in its H1 2025 results.
The supplier recorded revenue of €87.7m (£75.9m) in Latam for the first half of the year, down 31.6% year on year (YoY).
The slip was attributed mainly to Playtech’s revised agreement with Mexican operator Caliente Interactive, which came into effect in March.
The ongoing effects of Colombia’s 19% VAT on player deposits, in addition to Brazil’s transition to a regulated market, were also cited as influencing factors in the company’s H1 results.
Speaking to EGR, McGinnis explained that the Caliente Interactive deal in particular had led to a “one-off” dip in revenue, with the company expecting the region to bear fruit in the near future.
He said: “The change in our agreement with Caliente Interactive in Mexico was a one off that changed the whole nature of our relationship with them, leading to a one-off decline in revenues from that, but that’s now behind us.
“We’re really excited about the opportunities going forward in the likes of Mexico and Brazil. If you normalise for the Caliente Interactive deal in Mexico, and even the VAT situation in Colombia, the markets and our revenues are actually still growing, and we expect very strong growth in those areas going forward.”
CEO Mor Weizer shed further light on the company’s plans for the Latam markets.
He added: “We supply the largest operators including Betano and bet365, and we are in a deep discussion with a company that we are confident will become one of the largest operators in Brazil in the coming years.
“Altogether you should expect accelerated growth in Latam, on the back of the success of Caliente Interactive in Mexico, the growth in Brazil, and even if the VAT persists, you can expect to see growth in Colombia.
“We’re looking to extend into Peru and we’re very excited about that, and we’re monitoring developments in Chile. It’s an exciting region for us. We have the right products, and we have been working hard for many, many years to ensure our products will be fit for the local culture in the respective markets across the region.”
In the UK, Playtech generated revenue of €64.2m, down 3% YoY.
The UK government recently closed its consultation into introducing a Remote Betting and Gaming Duty (RBGD), which would look to unify general betting, pool betting and online casino into one single tax rate.
At the moment, general and pool betting levies are 15%, while online remote gaming duty is 21%.
In recent months, two UK think tanks have proposed more than doubling remote gaming duty to 50%, while increasing sports betting tax rates from 15% to 25%.
Concerns that Chancellor Rachel Reeves could greenlight gambling tax increases in the UK as part of her Autumn Budget led to fluctuations in the share prices of major UK operators on 8 August.
Flutter Entertainment, for example, saw its share price drop 5.5% on the London Stock Exchange in mid-August, as well as an 8% fall in New York.
Although unsure what impact any tax increases would have on Playtech’s business, Weizer urged the government to proceed with caution before finalising its decision.
He continued: “We think it’s important that the government engage with the industry on issues of tax reform to understand the impact of any changes, and any potential unintended consequences.
“We refer to the Netherlands, where the government changed regulations and increased the taxes. The unintended consequences were an increase in illegal activities and a shortfall of €200m in tax receipts.
“Obviously, while it could have an impact, it’s too early to suggest what the impact will be, but it will likely reduce competition.”
Playtech recorded revenue of €387m for H1 2025, down 9% YoY.
Profits for the period came to €1.6bn, boosted heavily by the sale of Italy-facing brand Snaitech to Flutter Entertainment in a €2.3bn deal.
The post Playtech targets Latam growth despite “one off” revenue dip first appeared on EGR Intel.
CFO Chris McGinnis expects to see solid growth in the region for the company moving forward, with Peru and Chile earmarked as future markets of entry
The post Playtech targets Latam growth despite “one off” revenue dip first appeared on EGR Intel.