Playtech Sees Revenue Decline Despite Growth in US Markets

(AsiaGameHub) –   The most recent FY25 financial results from Playtech Group have shown that the company is lagging in B2B revenue during a period when it is moving away from B2C operations.

B2B revenue from last year’s trading amounted to €688.3m, a 9% decrease from the €754.3m recorded in 2024. Adjusted EBITDA fell by 36% to €141.4m compared to FY24’s €222m, while post-tax profit was €44.2m – a 28% year-on-year decline.

The key factor affecting performance was the revised Caliente Interactive agreement at the end of 2024, under which Playtech ceased receiving extra B2B service fees in the first half of 2025 and began receiving dividend payments as a 30.8% equity stakeholder from the second half onward.

Strategic regional priorities

In contrast to the B2B revenue figures, B2C operational revenue stood at €78.5m (FY24: €97.8m), influenced by the €2.3bn sale of Italian gambling major Snaitech to Flutter Entertainment, along with a further B2C scaling back in Germany through the sale of domestic brand HAPPYBET.

Nonetheless, a significant bright spot for Playtech in FY25 was its advancement in North America. Revenue across the US and Canada surged by 71% year-on-year on a constant currency basis, rising from €29.8m to €48m. 

The company noted that this performance was fueled by strong activity from clients such as DraftKings, FanDuel, Hard Rock Digital, and Delaware North.

Live Casino has emerged as a key driver for Playtech’s US operations, the company confirmed, with the number of live tables operated by the firm nearly doubling year-on-year across its studios in New Jersey, Michigan, and Pennsylvania.

Turning to Latin America, the region was labeled a “core strategic priority” by company management, even as domestic revenue fell by 27% to €162m, directly attributed to the revised Caliente agreement and the introduction of VAT in Colombia.

Still, the regulation of Brazil at the start of last year helped mitigate a more severe impact, with Latin America revenue actually increasing by 8% year-on-year when excluding Caliente.

Colombia also remains a viable medium-term opportunity due to Playtech’s local partnership with Wplay and the potential for the government to reduce the 19% VAT on online gambling deposits to a 16% tax on a player’s GGR.

Despite tax challenges, B2B revenue in Europe grew by 4% year-on-year to €207.4m. Poland, Spain, Greece, and France were identified as top-performing markets for Playtech throughout 2025.

UK revenue, calculated separately from Europe, decreased by 6% year-on-year but retains key priority status for the Isle of Man-based company. 

The public Playtech Evolution AB dispute…

The company also provided an update on its ongoing case with Evolution AB, stating: “Evolution has not sought permission from the New Jersey Court to add any group entity to the proceedings, and no claim has been served on Playtech plc or any of its subsidiaries.”

In October 2025, Stockholm-listed Evolution released a statement alleging that Playtech had hired Black Cube, an Israeli private intelligence firm that markets itself as specializing in “high-stake disputes.” Playtech later acknowledged commissioning a private investigation into its competitor and stated it “stood by its decision” to do so. 

Evolution characterized the move as a “smear campaign,” claiming the investigation—which purports to have uncovered evidence of the company operating illegally in jurisdictions including China, Iran, and Sudan between 2021-2023—aimed to damage its reputation and could cause “multi-billion-dollar” harm. 

Playtech, however, countered: “Evolution continues to avoid legitimate scrutiny instead of addressing longstanding questions about its conduct, including its decision to supply operators in illegal markets and support unlicensed operators in regulated markets.”

… which has contributed to a share price plummet

The dispute did not sit well with the market, as Playtech shares dropped from 349.5p to 237.5p in the first five hours of trading on the day of the announcement. 

Its share price has generally trended downward over the past 12 months, declining by more than 50% during that period. The exception has been a positive trend since the start of the year. 

Even today, despite positive remarks from executives, significant progress in North America, and an upgrade to its expectations, the stock has fallen by 7.5% to £3.31. Its market capitalization remains just over £1bn. 

Upcoming and ongoing tax challenges, the current dispute with a rival, and declining revenue may be among the factors deterring investors from backing the widely discussed Isle of Man-headquartered company.  

Playtech’s position as a London-listed firm—specifically a FTSE 250 company—is an unenviable one amid such transformation, and it will aim to advance as outlined by executives to reverse steep drops in profit, revenue, and share price.