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Playtech CEO Reaffirms LatAm Focus Despite Volatile Regulations

Playtech leadership has actually encouraged partners to work out care when it pertains to navigating volatile policies in core markets.
In the wake of its H1 financial report where it reinstated its commitment to Latin American markets like Mexico, Colombia and Brazil, the B2B gaming group expressed some appointments about a list of proposed tax modifications in the relevant jurisdictions.
A major development for Playtech in Mexico saw the company acquire a 30.8% equity stake in regional operator Caliente. SBC News spoke with both Playtech's CFO, Chris McGinnis, and CEO Mor Weizer, about the long-lasting potential customers of this offer.
Taking on the tax expenses
While the commitment of Playtech towards the Caliente collaboration and the growth chances it offers, Weizer focused more on the rapidly developing regulatory elements of the Mexican market.
While still under review, a proposed legislation ahead of the 2026 Budget wants to increase the existing GGR responsibility from 30% to 50%. Weizer brought up examples from throughout Europe where tax hikes have actually triggered a mutual result on the marketplace.
"We've seen from worldwide developments like the Netherlands that increases in the betting tax can have unintended repercussions.
"Over there, this has triggered a reduction in marketing financial investments and some operators leaving the marketplace, as well as an increased activity of unregulated platforms.
"While undoubtedly we would choose the tax level in Mexico to stay the very same, we can't really visualize what the effect a boost will have, and we are still in the process of examining."
LatAm stays firmly in Playtech's sights
Latin America has actually captured the attention of many gaming firms, both B2B and B2C, with Brazil in specific seeing a rush of market entrants in the months since a managed betting area was launched in January.
Amidst this excitement, it is very important not to forget other Latin American markets, nevertheless, a number of which are seeing similar modifications to Europe around tax. Taking a look at Colombia, similar propositions were tabled to make the momentary VAT tax an irreversible charge.
While reaffirming that the nation remains a priority for Playtech, Weizer likewise encouraged caution, outlining that the market may end up being unsustainable for some operators if the federal government chooses to go through with its choice.
In Brazil, Playtech profits showed to be volatile compared to other jurisdictions like the US and Canada, primarily due to the regulation of the marketplace at the start of this year. However, Weizer remained confident that Playtech has actually acted accordingly, which its local partners are now well placed for sped up development.
"Brazil has the strictest set of guidelines worldwide, even when compared to the US, and they presented a really rigorous onboarding process that at the start led to a high level of rejection rates," the CEO explained.
"However, we now see GGR returning to really comparable levels to what we saw prior to the market's policy. Estimates suggest a market value of $6bn by the end of this year, and an expected growth of 15% between now and 2030, reaching $17bn.
"While it took the marketplace a long time to adapt to the new guidelines, I believe that from this point onwards we will see faster development. This is a huge chance for us. Our company believe Brazil is among the most appealing nations for the video gaming market in the coming years."
Snaitech sale sets up B2B focus
Finally, Playtech's H1 corporate accounts were favorably impacted by the sale of Snaitech to Flutter Entertainment, a huge moment in the company's transition to an entirely B2B enterprise.
When asked by SBC News about how Playtech plans to prioritise the release of newly-acquired capital, McGinnis included that everything is on the table - from M&A to investor returns.
"We have an extremely strong balance sheet and I think the very best thing that it does is offer us versatility that we can look into all of these alternatives," the CFO said.
"We've constantly had an M&A method. When we initially got Snaitech, it was part of that method. We still have that and we're frequently looking at M&An opportunities.
"In regards to organic development, our organization can money its growth, for example into markets like Brazil. With our balance sheet as well, we're looking at capital allocation more and more carefully.