Gambling software development company Playtech plc has upgraded its earnings forecast for the 2025 financial year after stronger-than-expected trading in the Americas, driven by robust fourth-quarter performance in the US and Mexico.
The London-listed gambling technology group said it now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year ended 31 December 2025 to be at least €195 million, ahead of the current analyst consensus. The release stated, “For 2026, the Company remains mindful of ongoing sector headwinds including the scheduled increase to gambling taxes in certain markets including the UK.”
Strong Q4 trading in the Americas
The forecast follows a strong second half of the year, with Playtech highlighting accelerating revenue trends in the Americas during the final quarter. The company said improved performance in regulated markets, particularly the US, reflected the growing returns from investments made over recent years.
In September, Playtech reported its financial results for the six months ended 30 June 2025, showing steady progress in its shift towards becoming a pure-play B2B technology provider. The company posted adjusted EBITDA of €91.6 million for H1 2025, in line with upgraded expectations issued in August, though down 16 percent year-on-year.
Revenue fell 10 percent to €387 million during the six months. Meanwhile, underlying B2B revenue rose 3 percent year-on-year, supported by strong performances in North America and parts of Europe.
Playtech has been expanding its footprint in North America through partnerships and platform deployments, positioning itself to benefit from continued growth in regulated online gambling and sports betting markets.
Outlook for 2026 amid sector headwinds
Looking ahead to 2026, Playtech cautioned in the forecast that wider sector challenges remain, including scheduled increases to gambling taxes in certain jurisdictions such as the UK.
From 1 April 2026, the Remote Gaming Duty, applied to gross profits from online casino games, digital slots and similar products, will rise from the current 21 percent to 40 percent. Chancellor Rachel Reeves, while confirming the tax increase, said the measures are expected to raise more than £1 billion by 2031 as part of a wider £26 billion tax package.
Despite this, the company said the momentum seen in the Americas means it enters the new financial year from a position of strength. Playtech has reiterated confidence in medium-term financial targets, which include adjusted EBITDA of between €250 million and €300 million and free cash flow of €70 million to €100 million, underpinned by growth in regulated markets.
CEO highlights investment payoff
Chief executive Mor Weizer said the fourth-quarter performance marked an inflexion point for the business, particularly in the US. He said Playtech’s long-term investment strategy in the Americas is now translating into improved profitability, with the company continuing to invest selectively in markets where it sees further growth opportunities. “We have been steadily investing across our business in the Americas for a number of years, and I’m particularly pleased with our recent progress in the US, as the benefits of our hard work start to accelerate and flow through to profitability.”
While acknowledging ongoing industry pressures, Weizer said Playtech remains optimistic about its trajectory in 2026 and beyond. He said, “While we remain mindful of wider sector headwinds, I am excited by the momentum we are building and the significant growth opportunity ahead.”
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